AMP5 Contractor Appointments

SEVERN TRENT WATER ANNOUNCES AMP5 CONTRACTOR APPOINTMENTS

Severn Trent today announces the advancement of its "early start" contracting
strategy with the appointment of its principal AMP5 contractors. 11 companies
have been appointed at an earlier stage than is usual - a year ahead - in the
AMP process. Early appointment will facilitate a head start on the design and
planning work and ensure that construction can begin immediately in AMP5.

Tony Wray, Severn Trent's Chief Executive said: "This represents a significant
step in our plans to raise standards and drive continuous improvement across
our organisation. In our AMP5 plan we have set ourselves challenging efficiency
targets, targeting some £200 million of capital efficiencies over the AMP5
period. This new approach will help us to reduce construction costs, enhance
links across our supply chain, improve design efficiency, decrease waste and
drive innovation."

The 11 appointed companies are Balfour Beatty, Barhale Construction, Biwater
Treatment Ltd, Costain, Enterprise, Interserve, LoRImtech, May Gurney, Mott
MacDonald Bentley, Morgan Est, and North Midland Construction.

Enquiries:

Venetia Cooper
Investor Relations Manager
Severn Trent Plc
0121 722 4523

Andrew Marsh

Public Affairs Manager

Severn Trent Plc

0121 722 4555

Mal Patel or Peter Hewer
Tulchan Communications
0207 353 4200