KeySpan Acquisition Update

National Grid PLC
18 August 2006


                                                                  18 August 2006


                 UPDATE ON NATIONAL GRID ACQUISITION OF KEYSPAN


National Grid is pleased to note that at the KeySpan Annual Meeting of
Stockholders held yesterday, KeySpan stockholders voted in favour of the
proposed acquisition of KeySpan by National Grid.


This follows the announcement on 10 July 2006 that the Federal Trade Commission
granted early termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act (HSR), and the announcement on 12 July 2006 that the
Committee on Foreign Investment in the United States (CFIUS) had completed its
review of the transaction and determined there are no issues of national
security sufficient to warrant an investigation. National Grid shareholders
approved the acquisition at the company's Extraordinary General Meeting on 31
July 2006.


Remaining approvals for the acquisition include authorisation by the Federal
Energy Regulatory Commission and by state public utility regulatory commissions,
including the New York Public Service Commission (NYPSC) and the New Hampshire
Public Utilities Commission (NHPUC). Filings requesting approval from each of
the NYPSC and NHPUC were made on 21 July 2006 and 11 August 2006 respectively,
and in May the companies filed for approval from the U.S. Federal Energy
Regulatory Commission.



CONTACT DETAILS


Investors

Alexandra Lewis [phone] [phone] (m)

Richard Smith [phone] [phone] (m)

James Waite [phone] [phone] (m)


Media

Clive Hawkins [phone] [phone] (m)


Citigate Dewe Rogerson [phone]

Anthony Carlisle [phone] (m)



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