Statement re paper on WACC

SEVERN TRENT PLC

Severn Trent publishes paper on weighted average cost of capital

5 August 2008

Severn Trent Water is to submit its draft business plan to Ofwat on 11 August
2008, which will be used by the regulator to determine customer water prices
from 2010 to 2015.

Severn Trent this morning publishes its paper, The World has turned: but which
way? setting out its views on issues to be considered in how the weighted
average cost of capital (WACC) should be determined.

The World has turned: but which way? is available on the company's website at 
www.severntrent.com.

ENQUIRIES:

Andrew Marsh                   Severn Trent      0121 722 4555     
                                                                   
External Affairs