Adoption of IFRS

Northumbrian Water Group PLC
27 September 2005


                                                               27 September 2005

                          Northumbrian Water Group plc
                                 (the Company)

            Adoption of International Financial Reporting Standards

Northumbrian Water Group plc adopted International Financial Reporting Standards
(IFRS) from 1 April 2005. These will be incorporated into the interim results
for the six months to 30 September 2005, due to be reported on 7 December 2005,
and also into the preliminary results for the year to 31 March 2006, due to be
reported in June 2006.

The Company will be holding a conference call at 9.30am today concerning the
impact of the transition to IFRS on the Northumbrian Water Group's financial
statements. The call will be hosted by Chris Green, Finance Director. The
presentation will be available at www.nwg.co.uk from 8.30am.

IFRS impacts on Group reported numbers only and, in summary, there is no impact
on cash, dividend policy or distributable reserves. As far as the comparative
information for the year to 31 March 2005 is concerned, this is summarised as
follows:

     -  The impact on profit before tax in the year to 31 March 2005 is a
decrease of £10 million whilst the impact on profit after tax in the same period
is a decrease of £20 million.
     -  Net assets have decreased from £523 million to £173 million at 1 April
2004 and from £569 million to £227 million at 31 March 2005, principally due to
the impact of deferred tax.

For further information contact:

Northumbrian Water                                     0191 301 6419
Chris Green, Finance Director
Stewart Hazon, Group Financial Controller

Finsbury                                               020 7251 3801
Andrew Mitchell
Sally Hogan





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