Talks re Cash Offer, etc

Thames Water PLC
20 September 2000


                                       
                       Thames Water Plc ('Thames Water')
                       ---------------------------------


Thames Water announces that it is in advanced discussions regarding a
recommended cash offer at £12.15 per ordinary Thames Water share.  In addition
Thames Water shareholders will receive in April 2001 an interim dividend of
20p per ordinary share to be declared in respect of the current year as well
as the final dividend already approved in respect of the year ending March
2000.

A further announcement is expected to be made within the next week regarding
the final outcome to these discussions.