Acquisition of KeySpan

National Grid PLC
24 August 2007


24 August 2007


                               National Grid plc

                             ACQUISITION OF KEYSPAN


National Grid is pleased to announce that it will complete the acquisition of
KeySpan today.


The New York State Public Service Commission (NYPSC) unanimously voted to
approve the transaction on 22 August 2007; this was the final regulatory
approval required. Our decision to complete the transaction follows a review of
the NYPSC's written order, issued on 23 August 2007.



Steve Holliday, National Grid Chief Executive, said:


'We've been working towards this goal for a well over a year and I am absolutely
delighted that we have achieved the final milestone.


'We are totally committed to making sure our customers and shareholders receive
the benefits coming from this merger. The substantial opportunities for cost
savings are clear, and with our investment capability we can really unlock
KeySpan's growth potential.


Everyone is keen to start working towards these goals, and now, the real work
starts.'



National Grid will be holding an investor seminar on its enlarged Gas
Distribution and Electricity Distribution & Generation businesses on 17 and 18
October 2007 in New York. To register an interest in attending this event,
please contact Investor Relations (e-mail: [e-mail]).
Invitations and further details (including relating to the venue) will be issued
to interested parties nearer the time.






Contacts


National Grid:


Investors

David Rees [phone] [phone] (m)

Richard Smith [phone] [phone] (m)

James Waite [phone] [phone] (m)


Media

Clive Hawkins [phone] [phone] (m)



Brunswick:

Paul Scott [phone] [phone](m)


CAUTIONARY STATEMENT

This announcement contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. These statements include information with respect to our financial
condition, our results of operations and businesses, strategy, plans and
objectives. Words such as 'anticipates', 'expects', 'intends', 'plans',
'believes', 'seeks', 'estimates', 'may', 'will', 'continue', 'project' and
similar expressions, as well as statements in the future tense, identify
forward-looking statements. These forward-looking statements are not guarantees
of our future performance and are subject to assumptions, risks and
uncertainties that could cause actual future results to differ materially from
those expressed in or implied by such forward-looking statements. Many of these
assumptions, risks and uncertainties relate to factors that are beyond our
ability to control or estimate precisely, such as delays in obtaining, or
adverse conditions contained in, regulatory approvals and contractual consents,
unseasonable weather affecting the demand for electricity and gas, competition
and industry restructuring, changes in economic conditions, currency
fluctuations, changes in interest and tax rates, changes in energy market
prices, changes in historical weather patterns, changes in laws, regulations or
regulatory policies, developments in legal or public policy doctrines, the
impact of changes to accounting standards and technological developments. Other
factors that could cause actual results to differ materially from those
described in this announcement include the ability to integrate the businesses
relating to announced or recently completed acquisitions with our existing
business to realise the expected synergies from such integration, the
availability of new acquisition opportunities and the timing and success of
future acquisition opportunities, the timing and success or other impact of the
sales of our non-core businesses, the failure for any reason to achieve
reductions in costs or to achieve operational efficiencies, the failure to
retain key management, the behaviour of UK electricity market participants on
system balancing, the timing of amendments in prices to shippers in the UK gas
market, the performance of our pension schemes and the regulatory treatment of
pension costs, and any adverse consequences arising from outages on or otherwise
affecting energy networks, including gas pipelines, which we own or operate. For
a more detailed description of some of these assumptions, risks and
uncertainties, together with any other risk factors, please see our filings with
and submissions to the US Securities and Exchange Commission (the 'SEC') (and in
particular the 'Risk Factors' and 'Operating and Financial Review' sections in
our most recent Annual Report on Form 20-F). Except as may be required by law or
regulation, National Grid undertakes no obligation to update any of its
forward-looking statements. The effects of these factors are difficult to
predict. New factors emerge from time to time and we cannot assess the potential
impact of any such factor on our activities or the extent to which any factor,
or combination of factors, may cause results to differ materially from those
contained in any forward-looking statement.



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