Investment in new funds

Scottish & Southern Energy PLC
14 June 2007



                        SCOTTISH AND SOUTHERN ENERGY PLC

                     INVESTMENT IN SUSTAINABLE ENERGY FUND


Scottish and Southern Energy plc ('SSE') is to invest £10m in a new fund (the
Sigma Sustainable Energy Fund II) to target sustainable, renewable and energy
efficient technologies. The fund will be managed by a subsidiary of Sigma
Capital Group, an AIM-listed fund management company that also owns Sigma
Technology Investments Limited, an investor in the fund. Bank of Scotland
Corporate and West Coast Capital are also investing in the fund, which will have
an initial value of £35m. The 10-year fund will have an investment period of
five years and has been established for investment mainly in the UK but also
throughout Europe.

SSE expects that its investment will yield business development opportunities in
generation, storage and consumption technologies which have the potential to
help the UK meet its target for reducing emissions of carbon dioxide and also
help to reduce dependence on fossil fuels. Such technologies may be
commercialised or have a clear path to commercialisation but require further
investment, which the new fund will be able to provide. SSE will also have the
opportunity to earn a return from investments, and will be able to establish
direct commercial relationships with investee companies.

SSE is already an investor in a separate £6m Sigma Sustainable Energies Fund.
Its early investments include Ocean Power Delivery Ltd, which is developing the
Pelamis marine energy device, and Xipower Ltd, which has developed patented
battery, power management and monitoring technologies.

Ian Marchant, Chief Executive of SSE, said: 'SSE is already involved in a wide
range of leading-edge projects with the objective of meeting demand for
electricity while reducing emissions of carbon dioxide. I believe that this new
fund will give us new opportunities to work with a range of companies which have
developed technologies to help deliver more sustainable means of producing and
using energy. It complements our existing plans to reduce the carbon from energy
production and to reduce energy consumption and is a real step forward towards a
more sustainable future.'


Enquiries to:

Scottish and Southern Energy plc
Justyn Smith - Head of Media Relations                  + 44 (0)845 0760 530
Sharron Miller-Mckenzie - Press Office Manager          + 44 (0)845 0760 530




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