Disposal

Centrica PLC
                  

May 19, 2005

Centrica sells British Gas Connections

Centrica plc today announced that it has agreed to sell British Gas Connections
Limited (BGCL), its licensed gas transporter business, to Kellen Venture Limited
for a consideration of £90 million. Kellen Venture Limited is a new company
owned by Terra Firma (75 per cent), and East Surrey Holdings plc (25 per cent).

BGCL which owns and operates gas transportation networks, primarily to new
housing developments, has connected assets serving 139,000 properties in the UK.
The business also has a future order book of 35,000 connections which will be
completed on behalf of the purchaser by British Gas' siteworks business, New
Housing Connections.

British Gas will retain the siteworks business which manages the relationships
required to support the sale of energy and related services to housing
developers and new homeowners.

The sale of BGCL follows a strategic review of the business, which delivered
operating profits of £3.9 million, turnover of £8.8 million and EBITDA of £6.4
million in 2004.

Enquiries:

Centrica Media Relations: 01753 494085
Centrica Investor Relations: 01753 494900