Acquisition

Scottish & Southern Energy PLC
02 January 2008


                         SCOTTISH AND SOUTHERN ENERGY PLC

                 ACQUISITION OF SLOUGH HEAT AND POWER COMPLETED


Scottish and Southern Energy plc ('SSE') has completed the acquisition of Slough
Heat and Power Ltd from SEGRO plc for a total cash consideration of £49.25m.

Slough Heat and Power is an integrated energy business, which includes a
combined heat and power (CHP) plant with potential generating capacity of 101MW.
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. 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.

Around 140 employees are joining SSE as a result of the acquisition.

Ian Marchant, Chief Executive of SSE, said: 'I am very pleased to have completed
this acquisition. While all of the assets at Slough are important, I am
particularly pleased that SSE now owns and operates the UK's largest dedicated
biomass energy facility. As well as reinforcing our position as the UK's leading
generator of electricity from renewable sources, this will give us a platform
from which to build up our interests in biomass and waste-to-energy, areas which
we believe will become increasingly important over the next decade.'


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