Acquisition

Thames Water PLC
13 October 2000

                                       
                               THAMES WATER PLC
                               ----------------
                        PROPOSED ACQUISITION OF E'TOWN
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                         UPDATE ON REGULATORY APPROVAL
                         -----------------------------
                                       
Thames Water Plc is pleased to announce that, on 11th October 2000, the New
Jersey Board of Public Utilities issued its formal approval of the acquisition
of the E'town Corporation by Thames Water Plc. The acquisition is expected to
be completed in late November.