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