Dealings by employee trusts

Northumbrian Water Group PLC
01 March 2007



                          Northumbrian Water Group plc

                                (the "Company")

                          Dealings by employee trusts


The Company was informed on 28 February 2007 that Northumbrian Water Share
Scheme Trustees Limited, as Trustee of the NWG Long Term Incentive Plan (the
"LTIP Trustee") sold or transferred 6,745 ordinary 10 pence shares on 28
February 2007 as a result of the exercise of LTIP awards by someone who is
neither a director of the Company nor a person discharging managerial
responsibility ("PDMR"). The disposal of these shares is pursuant to a
conditional award of shares made on 27 January 2004.

Following this disposal, the LTIP Trustee holds 764,108 shares, representing
0.147% of the Company's issued share capital.

The LTIP Trustee holds these shares in order to satisfy awards made under the
Company's LTIP, and so John Cuthbert and Chris Green, as executive directors of
the Company, and Ceri Jones and Graham Neave, as PDMRs of the Company, are
potential beneficiaries of these shares.

In addition, the Company was advised on 1 March 2007 by the Trustee of the
Northumbrian Water Group plc Share Incentive Plan (the "SIP Trustee") that on 1
March 2007 it purchased 28,257 ordinary 10 pence shares at £2.99 per share.

Following this transaction the SIP Trustee holds a total of 1,746,591 shares
representing 0.34% of the share capital of the Company.

John Cuthbert (Director), Chris Green (Director) and Ceri Jones (PDMR) are
beneficiaries along with other employees, and as such, each is deemed to be
interested in the shares held by the SIP Trustee.

This announcement is made in accordance with the requirements of DTR 3.1.4 R(1).


Name of contact and telephone number for queries

Jayne Powell, Assistant Company Secretary
Tel: [phone]



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