Trading Statement

SEVERN TRENT PLC ("THE COMPANY")

TRADING STATEMENT

23 September 2008

Severn Trent is issuing the following trading update prior to the announcement
of its interim results on 25 November 2008 for the six months ended 30
September 2008.

The Board considers that overall the Group will deliver first half-year
performance that is consistent with prior guidance and its expectations for the
full year.

In Severn Trent Water, the Group's principal subsidiary, our objective remains
to deliver 3% annual out performance against the Ofwat determination for
operating costs across the final two years of AMP4. However, there remains
continued volatility in chemical and other commodity prices.

Severn Trent Water's infrastructure maintenance programme and rate of
expenditure are progressively increasing through the year with first half
infrastructure renewals expenditure for 2008/09 expected to be around £60m,
representing around 45% of the total net expenditure for the year.

Group net debt at the half year (excluding IAS 39 fair value adjustments) is
expected to be around £3.5 billion.

Enquiries:

Mike McKeon                   Severn Trent Plc     0121 722 4319               
                                                                               
Finance Director                                                               
                                                                               
Peter Gavan                   Severn Trent Plc     0121 722 4310               
                                                                               
Director of External Affairs                                                   
                                                                               
Venetia Cooper                Severn Trent Plc     0121 722 4523               
                                                                               
Investor Relations Manager                                                     
                                                                               
Peter Hewer                   Tulchan              0207 353 4200               
                              Communications                                   

Footnotes:

1    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.