Sale of Subsidiaries

Northumbrian Water Group PLC
06 October 2005


6 October 2005

                       Northumbrian Water Group plc (NWG)

                              Sale of subsidiaries

NWG announces the sale of subsidiary Entec UK Limited (Entec) on 5 October 2005.
The total consideration for the sale to Entec management is £30 million,
satisfied by £29 million in cash and £1 million of loan notes. Entec UK Limited
provides environmental and engineering consultancy services.

NWG has agreed to meet any potential liability of Entec under Section 75 of the
Pensions Act 1995. This is expected to be substantially discharged by an
immediate payment of £9 million into the defined benefit scheme by NWG.

The sale of Fastflow Pipeline Services Limited (FPS) to a management buy-in, was
concluded on 8 July 2005 for a cash consideration of £0.8 million. FPS provides
infrastructure replacement and rehabilitation services.

For further information contact:

Northumbrian Water                         0191 301 6367
John Cuthbert, Managing Director
Alistair Baker, Communications & PR Manager

Finsbury                                   020 7251 3801
Andrew Mitchell
Sally Hogan


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