Trading Statement

SEVERN TRENT PRE-CLOSE PERIOD TRADING STATEMENT 1 April 2004 Severn Trent is starting its analysts' briefings ahead of the close period prior to the announcement of results for the year ending 31 March 2004. The following trading update for the 2003/04 financial year will be provided. The Board considers that the Group has delivered a good overall performance for the full year. In 2003/04 Severn Trent Water has benefited from the IDOK awarded in December 2002 and has continued to manage its opex and capex costs successfully. Capital investment in 2003/04 is broadly in line with its expectations and outputs are on target. Severn Trent Water has continued to deliver high levels of performance in terms of customer service and drinking water and wastewater quality. Following OFWAT's review of Severn Trent Water's leakage data, the company's Overall Performance Assessment for 2002/03 has been revised to first position in respect of water and sewerage companies. As part of the AMP4 price review, the final business plan will be submitted to OFWAT by the end of April and a summary of the plan will be published in early May. Biffa's total PBITA (including Hales and increased pension charges) is expected to be 12% to 16% ahead of last year. The Hales integration process to date is ahead of its originally planned timing and is expected to deliver the anticipated synergies. Despite the adverse impact of exchange rates, Services' total PBITA is expected to be 10% to 14% ahead of last year. The Group's results for the year ending 31 March 2004 will be announced on 8 June 2004. ENQUIRIES THURSDAY 1 APRIL 2004: Peter Gavan Severn Trent 0207 233 3914 Director of Corporate Affairs Julian Wais Severn Trent 0207 233 3914 Head of Investor Relations Simon Holberton Brunswick Group 020 7404 5959 AFTER 1 APRIL 2004: Peter Gavan : 0121 722 4310 Julian Wais : 07899 066 242 Footnotes: 1 PBITA is profit before interest, tax and goodwill amortisation but excluding exceptional items. 2 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; 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. This document is not an offer to sell, exchange or transfer any securities of Severn Trent Plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended). Ends

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Severn Trent (SVT)
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