Centrica and Lloyds TSB

Centrica PLC 13 December 2000 CENTRICA AND LLOYDS TSB ANNOUNCE JOINT VENTURE Centrica and Lloyds TSB today announce that they have agreed to form a joint venture between Goldfish, Centrica's financial services brand, and evolvebank.com, Lloyds TSB's standalone internet banking operation. The joint venture will be known as Goldfish Holdings Ltd. Centrica will have a 70% share of the joint venture and Lloyds TSB will have a 30% share. The joint venture intends to offer a broad range of integrated financial services products from which customers can select to meet their individual needs. Services will be accessible either online or via the telephone, and current account customers will have access to ATMs for cash withdrawals. evolvebank.com will bring to the alliance technology and banking expertise, together with Lloyds TSB's track record in bancassurance and regulatory experience. Centrica will bring the Goldfish brand, together with immediate access to nine million Centrica customers. Subject to the necessary regulatory approvals and ancillary agreements, the joint venture will establish a bank in 2001. The Goldfish credit card base, currently 1 million customers, will ultimately transfer to the joint venture. Prior to this, existing credit card arrangements will be unaffected. The bank will manufacture its own banking products, including current and savings accounts. Other products, including life and general insurance, will either be manufactured or sourced from highly competitive suppliers, with Lloyds TSB products playing a leading role. The proposition will be backed by an innovative loyalty scheme that will give customers a range of attractive rewards. Peter Ellwood, Chief Executive of Lloyds TSB, said: 'This innovative move is a great opportunity for Lloyds TSB. It enables us to work more closely with Centrica and to create one of the leading direct banks in the UK, in addition to Lloyds TSB.com, our multi-channel, internet bank, which now has over 1 million registered customers. The joint venture gives us access to Centrica's extensive customer franchise and combines evolvebank.com's technology with the power of the Goldfish brand. Together, we will be well placed to target the UK market and maximise the value-creating opportunities that lie ahead.' Roy Gardner, Chief Executive of Centrica, said: 'This move represents an important development for the Goldfish brand. With the experience of Lloyds TSB and the technological expertise of evolvebank.com, our joint venture will combine the best elements of internet banking, telebanking and integrated money management to create a leading edge financial services proposition for UK customers.' - ends - Notes to editors 1. evolvebank.com is Lloyds TSB's internet-only, pan-European banking service, which is operating currently in Spain. 2. Centrica has 18 million British Gas customers, 10.9 million AA roadside customers; 1.7 million AA insurance customers and 1 million Goldfish credit card customers. For more information: Centrica Press Office: Centrica Investor Relations: Tel: 01753 758 443 Tel: 01753 758 114 Lloyds TSB Press Office: Lloyds TSB Investor Relations: Tel: 020 7626 1500 020 7356 2167

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