Stmnt re High Court Decision

Severn Trent PLC
10 October 2000


SEVERN TRENT WELCOMES HIGH COURT DECISION

The High Court today ruled in favour of Severn Trent in the first stage of the
action against Dwr Cymru, WPD and United Utilities in respect of the proposed
outsourcing of Dwr Cymru's operations.

Severn Trent had sought to achieve an open tender process for the award of the
Operations and Maintenance contract for much of Dwr Cymru's operating
activities, awarded to UU Co as part of the arrangements under which WPD
acquired Hyder Plc.

The hearing of the case had been split into two parts, one dealing with issues
of principle, the other with more technical issues. The issues of principle
have now been resolved in Severn Trent's favour and the Court is now expected
to expedite the hearing on the technical issues relating to this particular
contract.

Brian Duckworth, the Managing Director of Severn Trent Water, said:

'We are pleased with the High Court's decision and we now look forward to the
Court hearing the second part of the case.  Severn Trent is determined to be a
strong player in both supply chain competition and for new customers.  We have
always been committed to ensuring that a level playing field is established
for all players. We hope that Dwr Cymru will eventually put the contract out
for open tender; at that stage Severn Trent would be delighted to compete for
the business.'


For more information, please contact:

Brian Duckworth                       - 0121 722 4947   
Managing Director
Severn Trent Water Ltd

Mark Wilson                           - 0121 722 4267
Finance & Regulation Director
Severn Trent Water Ltd

Robert Walker                         - 0121 722 4775
Group Chief Executive
Severn Trent Plc