Interim Management Statement

Northumbrian Water Group PLC
02 August 2007

2 August 2007

                          Northumbrian Water Group plc

                                ("the Company")



                          Interim Management Statement



The Company is today publishing its first Interim Management Statement which
relates to the period 1 April 2007 to 1 August 2007.



The Board confirms that trading has been in line with expectations and that
there have been no material events or transactions during the period.



Whilst the adverse weather conditions during recent weeks have caused some
flooding in the north east, this has not been as serious or extensive as in
other parts of the country.



Operating costs are being managed and energy costs are likely to be around £6m
lower for 2007/08 reflecting the fact that 77% of our power requirement has now
been contracted.



Capital investment is proceeding according to plan and we expect to submit the
planning application to expand the capacity of our reservoir at Abberton in
Essex later this year.



As stated at the time of the announcement of our preliminary results on 6 June
2007, we have already secured funding for the capital programme up to 2010.
Gearing levels are expected to remain stable with net debt approaching £2.2bn by
March 2008.



In preparation for the next Periodic Review of Price Limits, we will be
publishing our Strategic Direction Statement in the autumn, as required by the
Water Services Regulation Authority (Ofwat).  Separate statements will be
published for our northern and southern operating areas.  They will provide a
longer term view on key areas including water resources, leakage, metering,
sewer flooding and maintenance.



We also continue to contribute fully to Ofwat's consultation and discussion
documents ahead of the next Price Review and look forward to Ofwat's Methodology
for that Review which should be published in October 2007.



Outlook

We have made a good start to the year and are confident that this performance
will continue throughout the year to 31 March 2008.  At the Annual General
Meeting to be held later today, we will propose a final dividend of 7.52p per
share which will be payable on 14 September 2007 to shareholders on the register
as at 17 August 2007.





For further information contact:


Northumbrian Water                                           0191 301 6419

John Cuthbert, Managing Director
Chris Green, Finance Director
Alistair Baker, Communications & PR Manager

Pelham PR                                                    020 7743 6679
James Henderson
Chelsea Hayes
Archie Berens




                      This information is provided by RNS
            The company news service from the London Stock Exchange