Acquisition

Centrica PLC
9 January 2002


9 January 2002

Centrica enters broadband market

Centrica plc today announced that it has acquired the broadband customers and
associated infrastructure of iomart Group plc, a European Internet security
and messaging company.

The transaction, for a consideration of £2 million in cash secures 2,750
broadband business and residential customers in the UK, customer service
facilities in Glasgow and Stornoway, associated broadband infrastructure and
40 employees.

Centrica Telecommunications Managing Director, Ian El-Mokadem, said: 'This
acquisition gives us a key position in the developing broadband market and
offers access to the technological knowledge of iomart. Combined with
Centrica's financial resources and marketing expertise, this will allow us to
further develop our telecoms strategy.'


Enquiries

Centrica Investor Relations:          01753 494900

Centrica Telecommunications:          0161 888 9085


Notes

 1. In Britain, energy and essential services group Centrica plc trades under
    the AA, British Gas/Scottish Gas, Goldfish and One.Tel brands.

 2. Centrica Telecommunications is the leading indirect access telephone
    supplier in the UK with over 1 million active customers of its two brands.
    Its British Gas Communications business was launched in September 2000 and
    it acquired its One.Tel business in summer 2001. The business aims to
    bring innovative telecoms products and services at competitive prices.

 3. iomart Group plc is an Internet and messaging company, supplying Internet
    security applications and secure e-mail messaging services. Founded in
    1998, and listed on the UK AIM stock market, iomart is a European based
    company with operational headquarters in both the UK and Germany. iomart
    operates as a reseller of BT Wholesale broadband products and has a
    nationwide ADSL customer base of 2,750 installations.