Interim Management Statement

SEVERN TRENT PLC ("THE COMPANY")

INTERIM MANAGEMENT STATEMENT

22 July 2008

Severn Trent today publishes its interim management statement for the period
from 1 April 2008 to 22 July 2008.

The Board can confirm that trading has overall been in line with its
expectations, with no new material trading events or transactions occurring
during the period.

Sales prices in Severn Trent Water have increased by 5.07% (including
inflation) from 1 April 2008. We have previously noted a decline in consumption
across our measured income base. We expect this to continue and estimate it
will impact revenues by around £12 to £14 million in the current financial
year.

We expect that gross capital expenditure (UK GAAP) for the year will be around
£670 to £690 million. The level of net infrastructure renewals expenditure
included in this figure (charged to the income statement under IFRS) is
anticipated to be around £130 to £140 million.

Given the current economic climate, we continue to closely monitor our customer
debt and cash collection performance. Whilst we have not experienced any
material deterioration over the period to date, this remains a risk to our
outlook over the remainder of the year.

We remain on track to deliver around 3% annual out performance against the
Ofwat determination for operating costs in 2008/09 and 2009/10, notwithstanding
rising energy, chemical and other commodity prices and subject to the yet to be
determined impact of new, externally imposed requirements on the business,
principally the Traffic Management Act (which became law in April 2008). We are
looking carefully at how we may accelerate the investments in our improvement
plans to secure benefits earlier and to help offset any future risk of further
unforeseen commodity price rises.

In Water, Technologies & Services (known as Severn Trent Services), performance
in the first quarter has seen continued growth over the same period last year
and our outlook is for this to continue through the year. Some mature markets
for operating services are showing signs of slower growth, but other markets
and order book for water purification products remain strong.

Severn Trent will publish a pre-close period trading statement on 23 September
2008 and announce its interim results on 25 November 2008.

Enquiries:

Venetia Cooper                  Severn Trent Plc             0121 722 4523     
                                                                               
Investor Relations Manager                                                     
                                                                               
Peter Hewer                     Tulchan Communications       0207 353 4200