Cessation of Talks

Severn Trent PLC
26 July 2000


                  Announcement of Cessation of Talks


On 5 June 2000, Severn Trent announced that it was in ongoing talks with Waste
Management Inc. to acquire WM Sellbergs (Sweden).  This announcement also
stated there were a number of significant issues to be resolved.  Following
recent exploratory discussions Severn Trent has concluded that, at this stage,
it is not possible to resolve those issues to its satisfaction and has,
accordingly, ceased talks with Waste Management Inc.

The Company will continue to look for opportunities in the waste industry that
will enhance shareholder value.


For more information please contact:


Robert Walker                 Severn Trent Plc         0121 722 4000
Deputy Group Chief Executive

Peter Davies                  Severn Trent Plc         0121 722 4000
Company Secretary

David Daw                     Severn Trent Plc         0121 722 4000
Corporate Marketing Director

Iraj Ispahani                 Brunswick Group          020 7404 5959
Helen Shepard