Update on KeySpan Acquisition

National Grid PLC
06 July 2007


6 July 2007

                               National Grid plc

                 UPDATE ON NATIONAL GRID ACQUISITION OF KEYSPAN

National Grid is pleased to announce that it has reached an agreement in
principle with the staff of the New York State Department of Public Service and
several other parties regarding the acquisition of KeySpan.

Formal documentation of the agreement in principle is currently being prepared
and is expected to be filed with the New York State Public Service Commission
(NYPSC) shortly. The terms of the agreement will be publicly available at that
time.

The latest procedural schedule indicates that the merger approval will be placed
before the NYPSC for a vote on 22 August. Subject to an approval vote,
completion of the acquisition is expected shortly thereafter.


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)



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