Trading Statement

SEVERN TRENT

PRE-CLOSE PERIOD TRADING STATEMENT

4 April 2005

Severn Trent is issuing the following trading update ahead of the close period,
prior to the announcement of its results for the year ended 31 March 2005.

The Board considers that overall the Group has delivered a satisfactory
performance for the full year. Severn Trent Water has performed ahead of its
expectations, whilst Laboratories is lower than expected. The Group has also
absorbed the previously announced increased pension charges and the percentage
changes noted below are after such pension charges.

In 2004/05 Severn Trent Water has outperformed its financial targets and has
managed its opex and capex costs successfully. The AMP3 programme has been
delivered. It was announced on 20 January 2005 that manpower levels will fall
by up to 350 in the next 2-3 years. An exceptional charge of approximately £12m
for redundancy costs is expected for the year ended 31 March 2005. Severn Trent
Water has sustained its high level of performance in terms of customer service
and drinking water and wastewater quality, and its water resources are well
positioned for this time of year. It is now focused on achieving further
efficiencies and delivering the obligations defined under the AMP4 price review
announced by Ofwat on 2 December 2004.

Biffa's total PBITA is expected to be around 4-6% ahead of last year. The
results include the benefits of a full year's contribution from the June 2003
Hales acquisition, stronger Landfill profits in the first half and continued
progress in power generation. Collection continued to benefit from achieved
synergies but volumes remained flat through the year.

Services' total PBITA is expected to be around 10-12% less than last year due
largely to the weakening US $. Laboratories has experienced challenging market
conditions in the USA, whilst Water Purification and Operating Services is
continuing to perform well.

Other Businesses includes Systems, Property, Engineering consultancy and
Insurance. PBITA is expected in aggregate to be marginally less than that
reported last year with in particular a weaker performance by Systems and a
stronger performance by Property.

The Group's results for the year ended 31 March 2005 will be announced on
7 June 2005.

ENQUIRIES MONDAY 4 APRIL 2005:

Mark Wilson                  Severn Trent        0207 233 3914     
                                                                   
Group Finance Director                                             
                                                                   
Julian Wais                  Severn Trent        0207 233 3914     
                                                                   
Head of Investor Relations                                         
                                                                   
Peter Gavan                  Severn Trent        07901 517 447     
                                                                   
Director of Corporate                                              
Affairs                                                            
                                                                   
Eilis Murphy                 Brunswick Group     0207 404 5959     
                                                                   

AFTER 4 APRIL 2005:

Mark Wilson       : 0121 722 4267               
                                                
Julian Wais       : 07899 066 242               
                                                
Peter Gavan       : 0121 722 4310               

Footnotes:

1    PBITA is profit before interest, tax and goodwill amortisation and        
     excluding exceptional items.                                              
                                                                               
2    Severn Trent's Interim Results announcement on 29 November 2004 detailed a
     significant additional pension charge for 2004/05 estimated at around £   
     32m. This additional pension charge results from the normal triennial     
     valuations of the Severn Trent Water Pension Scheme and the Severn Trent  
     Senior Staff Pension Scheme and the analogous assessment of the Group's   
     unfunded pension liabilities for senior staff. The expected changes in    
     PBITA stated in this Trading Statement include the impact of this         
     additional pension charge.                                                
                                                                               
3    There will be a presentation on Biffa Waste Services, led by Martin       
     Bettington, Managing Director of Biffa, on Tuesday 26 April 2005. The     
     presentation, together with the presentation slides, will be available as 
     a simultaneous webcast on the Severn Trent website (www.severntrent.com)  
     and will remain on the website for subsequent viewing.                    
                                                                               
4    Interim and Preliminary Results for the year 2005/06 will be reported     
     under International Financial Reporting Standards. There will be a        
     presentation to communicate the implications of this change in September  
     2005, prior to the 2005/06 Interim Results announcement.                  
                                                                               
5    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).