Re Joint Venture

Lloyds TSB Group PLC
13 December 2000

                                        
                                        
158/00                                  13 December 2000
                 
                               
        LLOYDS TSB AND CENTRICA ANNOUNCE JOINT VENTURE

Lloyds TSB and Centrica 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 per cent
share of the joint venture and Lloyds TSB will have a 30 per
cent 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 one 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 one 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.'

                 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 one million Goldfish credit card customers.

For more information:

Lloyds TSB Press Office:           Lloyds TSB Investor
Relations:
Tel:  [phone]           020 7356 2167

Centrica Press Office:             Centrica Investor
Relations:
Tel:  [phone]                Tel:  [phone]