Response to Ofwat Announcement

OFWAT ANNOUNCEMENT

Severn Trent notes the announcement made today by Ofwat giving notice that it
is proposing to impose a financial penalty on Severn Trent Water for its
failure to achieve customer service performance standards .

As set out in our Announcement of 7 April we have been and will continue to
work in full and open cooperation with Ofwat and if customers have been
disadvantaged then Severn Trent Water shall reimburse them.

Contact details

Peter Gavan            Severn Trent Plc  0121 722 4310             
                                                                   
Director of Corporate Affairs            07887 824275              

www.severntrent.com