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: [phone]                   Tel: [phone]



Lloyds TSB Press Office:           Lloyds TSB Investor Relations:

Tel: [phone]              020 7356 2167