Acquisition

Scottish & Southern Energy PLC
14 November 2007



                        SCOTTISH AND SOUTHERN ENERGY PLC
                     ACQUISITION OF SLOUGH HEAT AND POWER LTD



Scottish and Southern Energy plc ('SSE') has entered into an agreement with
SEGRO plc to acquire its shares in Slough Heat and Power Ltd, an integrated
energy business, for a total cash consideration of £49.25m.  The agreement is
subject to a condition precedent, which once satisfied, should result in
ownership transferring to SSE by the end of December 2007.



The principal assets of Slough Heat and Power comprise: a combined heat and
power (CHP) plant, with potential generating capacity of 101MW and a current
generating capacity of around 80MW, which produces electricity plus heat which
is distributed via a steam and water distribution network; around 100km of
underground electricity network plus substations; and around 3,000 industrial,
commercial and domestic energy customers.



The CHP plant is the UK's largest dedicated biomass energy facility and its main
sources of fuel are wood chips, biomass and waste paper, although gas, gas oil
and heavy fuel oil can also be used.  The site has its own fibre fuel processing
plant, which takes delivery of waste paper products and converts these into
useable fuel.



Part of the plant is contracted under the Non Fossil Fuel Obligation and part of
it produces over 200GWh of output qualifying for Renewable Obligation
Certificates (ROCs), which is equivalent to around 90MW of wind generation.  It
also comes with an allocation of carbon emissions allowances for Phase II of the
EU Emissions Trading Scheme.



Almost all of these assets are located on the Slough Trading Estate and Slough
Heat and Power will continue to offer tenants on the Estate an integrated energy
solution.  The site is supported by a connection to SSE's Southern Electric
power distribution network.  Around 140 employees will join SSE upon completion.



Ian Marchant, Chief Executive of SSE, said:



'I am delighted that Slough Heat and Power is becoming part of SSE.  It is an
important business, situated right in the heart of one of our traditional
operating areas.  With its mix of assets and customers, it is a ready-made fit
for SSE's business model, and over time we expect to secure efficiencies and
synergies which will create further value.  Its sustainable energy credentials
are particularly appealing, and we are also looking forward to working with the
team at Slough.



'SSE's policy on acquisitions is that assets must complement existing businesses
and be priced in a way that is consistent with value creation and with our
financial priniciples generally.  Slough Heat and Power fits the bill.'






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