Acquisition

Centrica PLC
                  

                      British Gas Business to acquire BMSi

Centrica plc, through its British Gas Business division, today announced that it
has acquired Building Management System Integrators Ltd (BMSi) for a cash
consideration of £7 million. The acquisition, which includes an additional
earn-out mechanism of up to £3 million, will launch British Gas Business's entry
into the UK's expanding business energy services market which Centrica believes
will grow to £2 billion over the next five years, according to a consensus of
market sources.(1)

BMSi is a UK leader in the installation and contract servicing of specialist
building controls systems. These systems help improve building energy management
performance and can deliver significant energy and carbon savings. The business
currently employs a total of 69 people and its existing customers include Boots,
BAA and O2. By combining the capabilities of BMSi with the energy expertise
within British Gas Business it will be able to provide customers with new energy
management propositions and products.

British Gas continues to explore other acquisitions to further build the range,
scale and reach of the energy efficiency and low-carbon capabilities it can
offer business and domestic customers.

Phil Bentley, Managing Director of British Gas, said: 'With high energy costs,
and with the prospect of new legislation and tighter regulation around
businesses' carbon emissions, we will offer new ways to help our customers cut
their energy usage and reduce their carbon footprint. This rapidly growing
market is also being driven by changing customer attitudes and the desire of
many in business to demonstrate greater corporate responsibility by reducing
their energy usage and carbon footprint.

'Our new energy solutions will include building control technologies, automated
monitoring and targeting and smart metering which will help businesses track
energy consumption and optimise the operation of high energy consuming plant
such as heating, ventilation, air conditioning and lighting.'

Enquiries

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Notes to editors

Centrica plc is acquiring BMSi Ltd through its subsidiary British Gas Energy
Services Ltd a wholly owned subsidiary.

(1 )Forecast of the size of the business energy services market comes from
Centrica's analysis of a variety of market sources including Federation of
Environmental Trade Association, Building Control Industry Association (BCIA),
UKCEED, Energy Systems Trade Association, Carbon Trust, SMT Consulting.