Trading Statement

Severn Trent PLC
25 March 2002



SEVERN TRENT

PRE-CLOSE PERIOD TRADING STATEMENT

25 March 2002


Severn Trent is starting its usual analysts' meetings ahead of the close period
prior to the announcement of results for the year ending 31 March 2002. In these
meetings, the following information will be provided.


The Board considers that the overall performance of the Group in 2001/02 has
been satisfactory. Severn Trent Water has outperformed its regulatory targets
for gross opex efficiencies although there are offsetting cost pressures. The
Board has been encouraged by OFWAT's expressed concern about the current
discount of share prices to underlying asset values. Biffa has now completed the
integration of UK Waste, delivering synergies, which are ahead of the target
rate of £15m in a full year. As anticipated in our half-year announcement in
December 2001, the second half of the financial year just ending has seen a
clear weakening in the US economic environment, which has impacted Severn Trent
Services, and also some signs of a slowdown in the UK. However, during 2001/02
the Group has benefited from lower UK interest rates.


The Group's results for the year ending 31 March 2002 will be announced on 11
June 2002.


Footnotes:


 1. In accordance with good practice, Severn Trent has decided to adopt the
    policy of making a pre-close period trading statement. Such statements will
    be issued around the end of March and the end of September each year. This,
    therefore, is the first such pre-close period trading statement.


 2. It is expected that there will be analyst meetings over the next 2 weeks
    ahead of the close period prior to the announcement of the Group's results
    for the year ending 31 March 2002. In addition, as part of our normal
    pre-planned programme, there will be US institutional meetings during this
    week.




Enquiries:

Robert Walker                               Severn Trent           0121 722 4775

Group Chief Executive

Alan Perelman                               Severn Trent           0121 722 4176

Group Finance Director

Peter Gavan                                 Severn Trent           0121 722 4310

Director of Corporate Affairs

Simon Holberton                             Brunswick Group        0207 404 5959




Ends



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