Drax Group plc (”Drax” or the “Company”), the UK power generator, announces its interim results for the six months ended 30 June 2007.

Highlights

• EBITDA(1) up 21% to £288 million driven by improved margins delivered in the first half of 2007,
  realised through Drax’s progressive hedging strategy
• Return to shareholders of £100 million proposed, comprising: interim ordinary dividend of
  4.7 pence per share (£17 million) and share buy back of £83 million starting shortly
• Leading operating performance amongst UK coal generation plant maintained with plant availability of 87%
• Emissions abatement remains a key focus:

– Turbine upgrade installation commenced early – when complete will boost base load efficiency
of the plant to 40% and save one million tonnes of CO₂ each year

– The Government’s Energy White Paper improves confidence in the long term viability of co-firing –
Drax is targeting to produce 10% of its output from renewables by the end of 2009 resulting in an
annual saving of two million tonnes of CO₂

– Investment required to deliver compliance with the 2008 limits of LCPD largely complete

Six months ended 30 June 2007 compared to six months ended 30 June 2006

Notes:

(1) EBITDA is profit before interest, tax, depreciation and amortisation, exceptional items and unrealised gains on derivative contracts.

(2) Operating profit includes exceptional items and unrealised gains on derivative contracts totalling £13 million (2006: £108 million)

(3) During the period the calculation of earnings per share was amended to reflect share consolidations associated with special dividends from the date of consolidation only. Comparatives have been restated accordingly.

(4) Based on the number of shares in issue at 30 June 2006 and 30 June 2007 respectively

(5) Share buy back programme to be launched for £83 million

Commenting on the performance, Dorothy Thompson, Chief Executive of Drax, said:

“Drax has continued to deliver on its stated strategy over the last six months. Sticking to our strategy has enabled us to return nearly £600 million to shareholders since our listing in December 2005.

“We are very pleased to announce that we have made an early start on our turbines upgrade project and are installing this month our first high pressure turbine module. Fast tracking the project will bring early benefits in terms of engineering experience, and modest efficiency gains and carbon dioxide emissions reductions.

“A key focus for the remainder of the year is to prepare for compliance with the Large Combustion Plant Directive which comes into effect next year. We expect this legislation to provide a challenge for the power generation industry as a whole as coal generators across the UK adjust to new operating constraints.”

Forward Looking Statement

This announcement may contain certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financial position, strategy, projected costs, plans and objectives for the management of future operations of Drax Group plc (”Drax”) and its subsidiaries (the “Group”) are not warranted or guaranteed. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. Although Drax believes that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors, many of which are beyond the control of the Group, which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, factors such as: future revenues being lower than expected; increasing competitive pressures in the industry; and/or general economic conditions or conditions affecting the relevant industry, both domestically and internationally, being less favourable than expected. We do not intend to publicly update or revise these projections or other forward-looking statements to reflect events or circumstances after the date hereof, and we do not assume any responsibility for doing so.

Management Presentation and Conference Call

Management will host a presentation for analysts and investors at 9:00am (UK Time) today, Thursday 6 September 2007, at the City Presentation Centre, 4 Chiswell Street, Finsbury Square, London, EC1Y 4UP.

The meeting can also be accessed remotely via a conference call or alternatively via a live webcast, as detailed below. After the meeting, a video webcast and recordings of the call will be made available and access details for these recordings are also set out below.

A copy of the presentation will be made available from 7:00am (UK time) on Thursday 6 September for download at www.draxgroup.plc.uk/investor/results_and_reports/presentations

Event Title: Drax Group plc: Half Year Results
Event Date: Thursday 6 September 2007
Event Time: 9:00am (UK time)

UK Call In Number: 020 7162 0125
International Call In Number: +44 (0)20 7162 0125
US Call In Number: +1 334 323 6203

Webcast details

Live Event Link: http://events.webeventservices.com/drax/2007/09/06/

UK Instant Replay

Start Date: 6 September 2007
Delete Date: 6 October 2007
Dial In Number: 020 7031 4064
Freephone number (UK only): 0800 358 1860
Passcode: 761615

US Instant Replay

Start Date: 6 September 2007
Delete Date: 6 October 2007
Dial In Number: 1-954-334-0342
Freephone number (US only): +1 888 365 0240
Passcode: 761615

Video Webcast

Start Date: 6 September 2007
Delete Date: 7 December 2007
Archive Link: http://events.webeventservices.com/drax/2007/09/06/

For further information please contact:

Website: www.draxgroup.plc.uk