HFC Agreement

Centrica PLC
6 August 2001

  Centrica and Household International announce agreement of settlement terms


Centrica and Household International have reached an agreement whereby
Centrica will acquire HFC Bank's entire rights and interest in the Goldfish
credit card.

Under the terms of the settlement, HFC will receive a consideration of £85m
(net) in excess of the nominal value of the receivables of approximately £650m.
Centrica's investment to acquire these interests will be amortised in line with
current practice for similar transactions.

HFC and Centrica will work together to achieve an orderly transfer of HFC's
interest in the Goldfish credit card, including the receivables.

Both parties have agreed that customers will experience no disruption to
service while the transfer process occurs.

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