Alliance

Centrica PLC
25 April 2000



Centrica announces telecommunication agreements

Centrica plc has today announced a strategic alliance
with Vodafone UK Limited, a subsidiary of Vodafone
AirTouch plc, to provide mobile telephone services across
Great Britain. The company said it had also reached
agreement with Torch Telecom and Cable & Wireless
Communications for the provision of residential
telecommunications services.

The announcement marks a major step towards launching a
comprehensive telecommunications service. The integrated
fixed line and mobile service will also include
competitive internet access.

Vodafone, the UK's leading mobile communications company,
has been chosen to partner Centrica for the provision of
the wireless services to consumers. In addition, it will
provide its expertise and technical assistance for
billing systems, facilities management and marketing to
enable Centrica to offer the fully integrated telephone
service.

Torch and Cable & Wireless, leaders in
telecommunications, will provide fixed network capacity
for Centrica's residential telephone service.

Roy Gardner, Chief Executive of Centrica, said: 'We are
very pleased to be partnering Vodafone and joining forces
with Torch and Cable & Wireless. The tremendous
experience and expertise they offer will help Centrica
achieve its goal of bringing greater choice to consumers
in the telecommunications market.

'With three million electricity contracts signed and more
than a million Goldfish card holders, we have an
impressive track record in marketing new products and
services to consumers.'

Peter Bamford, Chief Executive of Vodafone UK said: 'We
are delighted to be working with Centrica. This is a
powerful partnership, combining our expertise with
Centrica's marketing skills and extensive customer base
to deliver new consumer telecommunications services.'


Enquiries:

Neville Barltrop, Centrica Media Relations:  01753 758442
Jo Sommers, Centrica Investor Relations:  01753 758114
Corinne Norris, Vodafone AirTouch Press Office  07000 500100
Tim Brown, Vodafone AirTouch Investor Relations  01635 33251


Notes to Editors:

1.  Centrica has said it expects to invest a total of
£150 million in its telecommunications business by the
end of 2002, of which £75 million will be spent this
year. It plans to launch the service in September and
aims to attract one million customers by the end of next
year.

2.  Saul Lanyado was appointed Managing Director of
Centrica's Telecommunications business earlier this year,
having held senior positions at GEC Marconi and STC and
managed international telecommunications businesses.
Centrica has already appointed a number of key managers
and recruitment of call centre staff is well underway.

3.  Vodafone UK Limited is a subsidiary of Vodafone
AirTouch Plc, the world's leading mobile communications
company with network operations in 25 countries serving
53 million proportionate worldwide customers. Vodafone UK
alone has over 8.8 million contract and prepay mobile
phone customers.

4. Torch Telecom is a member of the Kingston
Communications Group, which provides dedicated
communications networks and related services locally,
nationally and internationally.

5. The agreement with Cable and Wireless Communications'
international and partner services division relates to
the provision of wholesale network capacity. Cable and
Wireless Communications is one of the largest carriers of
wholesale telecommunications traffic in the United
Kingdom.