SEC Authorisation Received

National Grid Group PLC
17 October 2002



                                                                17 October 2002


                  National Grid Group plc and Lattice Group plc
                          SEC Authorisation Received

National Grid Group plc ('National Grid') and Lattice Group plc ('Lattice')
announce that yesterday National Grid received authorisation from the US
Securities and Exchange Commission, under the Public Utilities Holding Company
Act of 1935, for its proposed financing arrangements in respect of its merger
with Lattice to form National Grid Transco (the 'Merger').  This was the final
regulatory approval outstanding in the US.

The Merger therefore only remains subject to the sanction of the Lattice Scheme
of Arrangement (the 'Scheme') by the High Court, the Scheme becoming effective
and admission of the New National Grid Transco Shares to the Official List of
the UK Listing Authority and to trading on the London Stock Exchange.  All other
conditions to the Merger have now been waived or satisfied.

As previously announced, the hearing of the petition to sanction the Scheme has
been arranged for today.  Accordingly, subject to the High Court sanctioning the
Scheme at that hearing, National Grid and Lattice expect:

•    the Lattice Scheme Record Time to be 6.00pm on 18 October 2002, the last 
     day of dealings in Lattice Shares;
•    the Lattice Scheme Effective Date to be 21 October 2002, and the following 
     events to take place on that date:
     -      completion of the Merger;
     -      the change in National Grid's name to National Grid Transco plc;
     -      admission of the New National Grid Transco Shares to the Official 
            List of the UK Listing Authority and to trading on the London Stock 
            Exchange;
     -      commencement of dealings in New National Grid Transco Shares on the 
            London Stock Exchange; and
     -      crediting of New National Grid Transco Shares to the relevant CREST 
            accounts; and
•    the New National Grid Transco Share certificates to be dispatched to the 
     relevant Lattice Shareholders no later than 4 November 2002.

Terms used in this announcement shall have the same meaning as in the respective 
Circulars circulated by National Grid to its shareholders and by Lattice to its 
shareholders, in both cases dated 14 June 2002.


Enquiries:

National Grid                               Lattice
Investor Relations                          Investor Relations
Marcy Reed         44 (0) 20 7312 5779      Gary Rawlinson   44 (0) 20 7389 3218
Terry McCormick    44 (0) 20 7312 5785
Louise Clamp       44 (0) 20 7312 5783

Media Relations                             Media Relations
Clive Hawkins      44 (0) 20 7312 5757      Gillian Home     44 (0) 20 7389 3212
                                            Jim Willison     44 (0) 20 7389 3213


Citigate Dewe Rogerson                     The Maitland Consultancy
Anthony Carlisle   44 (0) 20 7638 9571     Angus Maitland    44 (0) 20 7379 5151




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