Trading Statement

SEVERN TRENT PLC

TRADING STATEMENT

2 April 2008

Severn Trent is issuing the following trading update prior to the announcement
of its preliminary results on Thursday 5 June 2008 for the year ended 31 March
2008.

The Board considers that the Group has delivered trading performance consistent
with its expectations and prior guidance.

Water and Sewerage

Profit before Interest and Tax (PBIT) for Water and Sewerage is expected to
increase by around 10%-12% on prior year (2006/07 £413m).

Severn Trent Water remains on track to meet the Ofwat determination for
operating costs for the full year 2007/08.

Estimates of the exceptional costs to be charged to the profit and loss account
in relation to the July 2007 floods are around £13m-£17m, net of insurance
recoveries of £16m.

Infrastructure renewals expenditure is expected to be in the region of £105m-£
110m for the year.

Gross capital expenditure under UK GAAP, (including infrastructure renewals
expenditure) is expected to be around £590m for the full year 2007/08.

Severn Trent Water believes it has achieved the Ofwat annual leakage target for
the year ending 31 March 2008, subject to verification through the normal
regulatory process.

Water Technologies and Services

Underlying PBIT growth rate (on a constant currency basis) is expected to be
around 6%. Reported PBIT in this business has been impacted by the fall in
value of the US Dollar and is expected to be at least flat year on year (2006/
07 £19.7m).

Corporate and Other

Corporate overheads are expected to fall to around £11m-£13m (2006/07 £25.4m)
reflecting the Group's restructuring. For other businesses, the PBIT loss for
the full year is expected to be around £1m-£2m (2006/07 loss of £0.9m).

Net Debt

Group net debt at the year end (excluding IAS 39 fair value adjustments) is
expected to be around £3.4bn. RCV at 31 March 2008 will be £5.9bn, resulting in
a Group net debt to RCV of around 57% at the year end.

ENQUIRIES:

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

Footnotes:

1    The financial statements presented have been prepared in accordance with  
     IFRS, as endorsed by the EU, and interpretations issued by the            
     International Financial Reporting Interpretations Committee (IFRIC) or its
     predecessor body. The group's IFRS accounting policies are set out on     
     pages 49 to 53 of its 2007 Annual Report.                                 
                                                                               
2    PBIT is profit before interest and tax and excluding exceptional items.   
                                                                               
3    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.