The Tokyo Electric Power Company, Inc. (TEPCO) signed an agreement today
to acquire an interest in the Paiton I Project by purchasing one of its
current owners.

This acquisition makes TEPCO the first Japanese electric power company
to invest in the IPP business in Indonesia.

The project involves a 1,230 MW coal-fired plant at the Paiton complex,
about 150 km southeast of Indonesia's second largest city, Surabaya,
eastern Java.  The project has a 40-year power purchase agreement (PPA)
from 2001 to sell power to Indonesia's state-owned power company, or PLN.

The project is owned and managed by PT Paiton Energy, a company jointly
owned by IPM Eagle LLP (a partnership of International Power plc from
the U.K. and Japan's Mitsui & Co., Ltd), Mitsui & Co., Ltd, Indonesia's
PT BHP and a partnership between GE Commercial Finance Energy Financial
Services and TransCanada Corporation, which are the sellers to TEPCO in
this acquisition. 

TEPCO agreed with the sellers to purchase the 14 percent interest for
USD 137 million and signed the purchase and sale agreement after completing
due diligence and negotiations.

TEPCO also intends, subject to contract, to purchase a 15 percent stake
in the Paiton operation and maintenance (O&M) company from IPM Eagle LLP.
TEPCO can offer its advanced technology and know-how to the O&M company.

Participation in this established project affords TEPCO an attractive
investment opportunity based on the stable returns expected from the long
term PPA with PLN. 

Through the investments, TEPCO intends to contribute to Indonesia's power
business that is expected to see ever rising demand.

Along with the activities in Indonesia, TEPCO is engaged in other power
generation projects in Australia, Taiwan, the United Arab Emirates and
Vietnam.  TEPCO is also participating in Eurus Energy Holdings, which
operates wind power generation projects in the Unites States, Europe and
Japan.  We will seek further growth and expansion through our international
activities.