Disposal

SALE OF SEVERN TRENT LABORATORIES(US)

Severn Trent Plc announces today the sale of its US analytical environmental
testing firm Severn Trent Laboratories (STL) to TestAmerica Holdings, an
affiliate of H.I.G. Capital, for a cash consideration of approximately £85
million.

The transaction is subject to US regulatory approval and is expected to be
completed by the end of December 2006. STL UK will remain part of the Severn
Trent group.

Mr Colin Matthews, Group Chief Executive, said "We announced in June that
following our decision to demerge Biffa we wanted to concentrate on water.
Therefore STL US was no longer regarded as core. Today's announcement continues
our strategic drive to create value through a focus on water."

STL Chief Executive Officer Rachel Brydon Jannetta will remain with STL US and
resign from the Severn Trent Plc Board on completion of the deal.

For further information contact:

Peter Gavan 02476 656114

Director of Corporate Affairs 07901 517447

Jonathan Davies

Head of Investor Relations 0121 722 4295

David Trenchard

Tulchan Communications Group 020 7353 4200

www.severntrent.com