Corporate Update

Scottish & Southern Energy PLC
17 March 2005


                 SCOTTISH AND SOUTHERN ENERGY WIN £400 MILLION
                        'MOD' SOUTH EAST PRIME CONTRACT

A joint venture comprising Southern Electric Contracting, the subsidiary of
Scottish and Southern Energy plc ('SSE'), and Interserve, has been awarded the
Ministry of Defence's 'Prime' contract covering London and the south-east of
England.

The contract, which was awarded by Defence Estates, the agency set up to manage
the MoD's estate, is worth approximately £400 million over an initial seven
years with an MoD option of a three-year extension. Operations will begin in
April 2005.

South East Prime is one of five long-term contracts being rolled out across the
UK by the MoD, which will employ prime contracting principles to procure the
majority of its construction and maintenance services.

Ian Marchant, SSE's Chief Executive said: 'I am very pleased that the work
leading to the award of this contract has been completed. This is a significant
milestone in the ongoing development of SSE's Contracting business. The
important thing now is to make a success of the contract.'

                                    - ENDS -

For further information contact:

Alan Young - Director of Corporate Communications    0870 900 0410
Denis Kerby - IR and Media Relations Manager         0870 900 0410



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