Acquisition

Centrica PLC
                  

October 1 2004

Centrica acquires Dyno-Rod

Centrica plc today announced that it has acquired Dyno-Rod, the UK's leading
on-demand drain maintenance specialist, and its related businesses, for a
consideration of £57.6 million in cash.

Dyno-Rod will add to British Gas' portfolio of home services and will help to
support customer retention and drive cross-selling opportunities with new
customers. Centrica's Business Services arm is already exploring similar
prospects in the commercial sector.

The combination will also provide operating synergies for British Gas which
already has significant relationships with Dyno-Rod through its plumbing and
drains product offerings.

Since the products were first introduced in 1999, British Gas has attracted 1.2
million contracted plumbing and drain cover customers, and will use this
acquisition to increase its access to the on-demand market.

Dyno-Rod's 2004 turnover is currently forecasted to be £13 million (derived from
a franchisee turnover of £60 million) with a profit before tax of £6 million.

Mark Clare, Managing Director of British Gas said: 'Dyno-Rod is a
well-established and trusted brand which complements British Gas as a leading
service provider in an on-demand plumbing and drains market-place worth in
excess of £500 million per year.

'British Gas already helps to protect the homes of millions of customers with a
wide range of contract products from central heating, kitchen appliance and home
electrics care to plumbing and drains cover. This acquisition will give us
better access to the 14 million private households who currently rely heavily on
emergency call-out services.'

The Dyno-Rod group currently has 89 drains franchises covering the UK and
Ireland plus an expanding network of 13 plumbing franchises. It also has 60
locks franchises, the UK's largest mobile emergency locksmith service, which has
scope for further geographical franchise expansion nationwide.

Dyno-Rod employs 131 full-time staff at its Surbiton office, plus 12 staff
co-located in British Gas' Stockport office.


Enquiries:

Centrica Media Relations                01753 494085
Centrica Investor Relations             01753 494900

Notes to editors:

--  Dyno-Rod is the UK's market leading drain cleaning service. Their work
    includes clearing blockages, CCTV drain inspection surveys, drain repairs
    and pipework installations.

--  Dyno-Locks is a lock and security service specialising in gaining entry to
    buildings and cars, replacing/fitting locks and grilles, on-site key cutting
    and safe opening.

--  Dyno-Plumbing provides a specialist plumbing service including: burst &
    leaking pipework, washing machine and dishwasher installations, repair of
    ball valves, water tanks and cisterns.

Existing British Gas Home Service customer product holdings (to end H1 2004):

Central heating service contracts 3,298,000
Other central heating service contracts 827,000
Kitchen appliances care (no. of appliances) 1,222,000
Plumbing & drains care 1,142,000
Electrical care 666,000
Home security 27,000

Total holdings 7,182,000