Acquisition

Centrica PLC
                  

Centrica agrees completion terms to acquire 1m customers in Alberta

Centrica today announced that it has reached agreement to complete the
acquisition of the retail gas and electricity business of ATCO Group in Alberta,
Canada, on 4 May 2004.

The transaction, originally announced on 10 December 2002, will now be for an
amended consideration of C$90 million (£37.5 million) in cash, equivalent to
approximately C$90 (£37.50) per customer. Half is payable on completion and the
remainder 12 months later.

This is less than the original consideration of C$128.5 million due to the
impact of subsequent legislative and regulatory changes.

On completion of this transaction Centrica will acquire approximately one
million customers in Alberta, representing 80 per cent of the province's gas
consumers and 14 per cent of electricity consumers.

This transaction means that Centrica now has over 5.1 million customer
relationships in North America, where it is already the largest supplier of
unregulated energy and related services to homes and small businesses. It
complements Centrica's other operations in North America and delivers another
strong geographical hub through which the company can grow its business.

Centrica expects this transaction to reduce North American percentage operating
margins in the short term as all customers will initially be on a regulated
tariff allowing only pass through of costs. Value will be created through
customers switching to deregulated tariffs and through cross selling of energy
and related products and services.

Enquiries:

Centrica Investor Relations 01753 494900

Centrica Media Relations 01753 494085