Interim Management Statement

SEVERN TRENT PLC ("THE COMPANY")

INTERIM MANAGEMENT STATEMENT

27 January 2009

Severn Trent today publishes its interim management statement for the period
from 1 October 2008 to date.

The Board can confirm that, with the exception of measured income consumption,
trading has been in line with its expectations. There have been no material
trading events or transactions occurring during the period, other than the £400
million 6% sterling bond, issued on 22 January 2009 and maturing on 22 January
2018.

The decline in consumption previously noted across our measured income base has
continued, driven principally by non-household customers. We estimate the
year-on-year negative impact on revenues will be around £20 to £25 million in
the current financial year, compared to our previous view of £12 to £15
million.

Operating expenditure and capital expenditure over the AMP4 period continue to
be in line with the Board's expectations.

Operating expenditure in 2008/09 remains on track, with the planned operating
cost savings of £30 million during 2008/09 and 2009/10 being delivered in line
with our plans.

Whilst capital expenditure over the AMP4 period remains in line with the
Board's expectations, we are anticipating some movement in the capital
programme from 2008/09 to 2009/10 due to re-prioritisation. We therefore expect
that gross capital expenditure (UK GAAP) for 2008/09 will now be around £650 to
£670 million, previously £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 £120 to £130 million.

Whilst we remain on track to meet our operating and capital expenditure targets
in monetary terms, the recent rapid reduction of both RPI and COPI is likely to
lead to a lower than anticipated baseline Final Determination as we proceed
into the final year of AMP4. We remain focussed on the successful delivery of
the absolute levels of expenditure previously announced and we continue our
efforts to identify and pursue additional opportunities across our operating
and capital expenditure base in this lower inflation environment.

Severn Trent will publish a pre-close period trading statement on 24 March 2009
and announce its preliminary full year results on 29 May 2009.

Conference call:

A conference call for investors and analysts will be chaired by Mike McKeon,
Finance Director of Severn Trent, at 8am on Tuesday 27 January 2009. Call
details are as follows:

Telephone number: [phone]
PIN code: 352762#

This call will be recorded and available immediately after the live call has
concluded for playback for 30 days and can be accessed as follows:

Telephone number: [phone] (US [phone])
Conference reference: 252184#

Enquiries:

Venetia Cooper
Investor Relations Manager
Severn Trent Plc
0121 722 4523

Andrew Marsh

Public Affairs Manager

Severn Trent Plc

0121 722 4555

Mal Patelor Peter Hewer
Tulchan Communications
0207 353 4200