Convertible Bond Issue

Scottish & Southern Energy PLC
29 September 2004

Not for distribution in or into the United States



29 September 2004



Scottish and Southern Energy plc - Convertible Bond Issue of up to £300 million



Scottish and Southern Energy plc ('SSE') announced today that it has launched an
offering of £275 million of Senior Unsecured Convertible Bonds due 2009 (the
'Bonds'), convertible into fully paid ordinary shares of SSE (the 'Offering').

The Bonds will be priced at 100 per cent of the principal amount and will bear a
cash coupon of between 3.25 per cent and 3.75 per cent per annum. The conversion
price will be set between 900p and 935p, a premium of between 18.4 per cent and
23.0 per cent to the closing price of SSE's ordinary shares on 28 September
2004. The final terms of the Bonds are expected to be announced on 29 September
2004. Settlement of the issue is expected to take place on or around 29 October
2004. Merrill Lynch International is acting as sole bookrunner and joint-lead
manager. Credit Suisse First Boston is acting as joint-lead manager (together
with Merrill Lynch International, the 'Managers').

In addition, SSE has granted the Managers of the Offering an over-allotment
option of up to £25 million of Bonds.

The net proceeds of the issue will be used for general corporate purposes. In
the short term, SSE will use the proceeds to reduce its existing borrowings.

Application will be made for the Bonds to be admitted to the Official List of
the UK Listing Authority and to the London Stock Exchange plc for the Bonds to
be admitted to trading on the London Stock Exchange's market for listed
securities. The Bonds will be offered outside the United States in compliance
with Regulation S.



For further information please contact:

Scottish and Southern Energy                Tel: [phone]

Alan Young - Director of Corporate Communications
Denis Kerby - Investor and Media Relations Manager



Merrill Lynch International                    Tel: [phone]

Simon Fraser
Julian Kozerski
Andrew Osborne



STABILISATION/FSA

In the United Kingdom, this announcement is directed exclusively at persons who
fall within article 19 (5) or 49 (2) of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2001 (all such persons together being referred
to as 'relevant persons'), and must not be acted on or relied upon by persons
other than relevant persons. Any invitation or inducement to engage in any
investment activity included within this announcement is available only to
relevant persons and will be engaged in only with relevant persons.



This announcement is not for distribution, directly or indirectly in or into the
United States or to any US person (as defined in Regulation S under the US
Securities Act of 1933, as amended ('Regulation S')).  These materials are not
an offer of securities for sale into the United States or elsewhere. The
securities may not be offered or sold in the United States or to, or for the
account or benefit of, US persons unless they are registered or exempt from
registration. There will be no public offer of securities in the United States.




                      This information is provided by RNS
            The company news service from the London Stock Exchange