AGM Special Resolution

Northumbrian Water Group PLC
03 August 2004


                                                                   3 August 2004

                          Northumbrian Water Group plc
                                (the "Company")

         Notice of Special Resolution passed at Annual General Meeting
                                 3 August 2004


The Company announces that two copies of the resolution, the text of which is
provided below, passed at the Annual General Meeting of the Company held today,
have been sent to the UKLA's Document viewing facility and will shortly be
available for inspection.

IT WAS RESOLVED:

THAT the Company is generally and unconditionally authorised for the purposes of
Section 166 of the Companies Act 1985 (the Act) to make one or more market
purchases (as defined by Section 163 of the Act as amended) out of distributable
profits of ordinary shares of 10 pence each of the Company (ordinary shares) to
be held by the Company as treasury shares in accordance with Sections 162A to
162C of the Act or dealt with by the Company in accordance with Section 162D of
the Act, provided that:

  (i)     the Company may not purchase more than 5,186,238 ordinary shares;
  (ii)    the Company may not pay less than 10 pence for each ordinary share;
  (iii)   the Company may not pay more than 5% over the average of the middle 
          market price of the ordinary shares based on the London Stock Exchange
          Daily Official List, for the five business days immediately preceding 
          the day on which the Company agrees to purchase the ordinary shares; 
          and
  (iv)    this authority shall expire at the conclusion of the next Annual 
          General Meeting or on 31 October 2005 if the next Annual General 
          Meeting has not been held by then.


Further Enquiries:
Finsbury:                      020 7251 3801
Mark Harris
Sally Hogan



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