Director Shareholding

Northumbrian Water Group PLC
27 January 2004

                                                                 27 January 2004





                          Northumbrian Water Group plc

                                (the "Company")



                 Notification of Directors' Interests in Shares





Following approval of the proposed Long Term Incentive Plan by Shareholders at
the Extraordinary General Meeting of the Company held on 16 December 2003 (the "
Plan"), the following Awards have been made today to the following Directors of
the Company by the Trustee of the Plan:


Name of Director                                Number of Ordinary Shares in relation to which
                                                an Award is granted
John Cuthbert                                   85,603
Christopher Green                               56,618



A summary of the rules of the Plan and the performance conditions necessary for
the vesting of Awards was set out in the circular to Shareholders dated 28
November 2003.



Further Enquiries:



Finsbury                       020 7251 3801

Rollo Head

Mark Harris

Anthony Silverman




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