Interim Management Statement

26 January 2010

                 Severn Trent Plc Interim Management Statement                 

               for the period 1 October 2009 to 25 January 2010                

The Board of Severn Trent Plc confirms that trading has been in line with its
expectations, with no material trading events or transactions occurring during
the period from 1 October 2009 to 25 January 2010.

The decline in consumption previously noted at Severn Trent Water Limited
across the measured income base, which was driven principally by non-household
customers, has stabilised. It is estimated that the year-on-year impact on
revenues will now be around £5 to £10 million in the current financial year,
from the £15 to £20 million previously indicated.

The current bad debt level has remained at around 2.3% of turnover, the level
at which we exited last financial year and the level reported for the first
half of the current financial year. We continue to monitor future developments
closely.

Operating expenditure and capital expenditure continues to be in line with the
Board's expectations for the year and AMP4 period.

It is expected that net capital expenditure (UK GAAP after deducting grants and
contributions) for the year will be around £610 to £630 million, in line with
expectations. The level of net infrastructure renewals expenditure included in
this figure (charged to the income statement under IFRS) is anticipated to be
around £100 to £110 million.

The recent extreme weather has had some impact on operations, with the
prolonged period of freezing temperatures causing an increase in leakage above
normal levels for the winter. Severn Trent Water has brought in additional
resources and is working to bring leakage rates back down as rapidly as
possible. It is too early to evaluate the impact on annual leakage performance,
which will be assessed post March year end. The additional cost of repairing
these leaks is not material in the context of total annual operating
expenditure.

Severn Trent Plc announced on 19 January 2010 that its subsidiary, Severn Trent
Water, had accepted Ofwat's final set of proposals for the period 2010-2015
(the "Final Determination").

Severn Trent Plc will announce its preliminary full year results for the
financial year ending 31 March 2010 on 28 May 2010.

Enquiries:

Tony Wray                  Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Chief Executive                                      0121 722 4938             
                                                                               
Mike McKeon                Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Finance Director                                     0121 722 4319             
                                                                               
Andrew Marsh               Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Media Relations                                      0121 722 4555             
                                                                               
John Crosse                Severn Trent Plc          0207 353 4200 (on the day)
                                                                               
Head of Investor Relations                           0121 722 4523             
                                                                               
Peter Hewer/Mal Patel      Tulchan Communications    0207 353 4200             

Forward-Looking Statements:

This document contains certain "forward-looking statements" with respect to
Severn Trent's financial condition, results of operations and business, and
certain of Severn Trent's plans and objectives with respect to these items.

Forward-looking statements are sometimes, but not always, identified by their
use of a date in the future or such words as "anticipates", "aims", "due",
"could", "may", "should", "expects", "believes", "intends", "plans", "targets",
"goal" or "estimates". By their very nature forward-looking statements are
inherently unpredictable, speculative and involve risk and uncertainty because
they relate to events and depend on circumstances that will occur in the
future.

There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, changes in the
economies and markets in which the group operates; changes in the regulatory
and competition frameworks in which the group operates; changes in the markets
from which the group raises finance; the impact of legal or other proceedings
against or which affect the group; and changes in interest and exchange rates.

All written or verbal forward-looking statements, made in this document or made
subsequently, which are attributable to Severn Trent or any other member of the
group or persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. Severn Trent does not intend to
update these forward-looking statements.