Notice to Convertible Bond Ho

RNS Number : 0772W

Scottish & Southern Energy PLC

05 June 2008

Scottish and Southern Energy plc - Notice to Convertible Bond Holders

THIS NOTICE IS IMPORTANT AND REQUIRES BONDHOLDERS' IMMEDIATE ATTENTION. If Bondholders are in any doubt as to the action they should take, they are recommended to seek their own personal financial advice immediately from their stockbroker, bank manager, solicitor, accountant or other independent financial adviser who, if they are taking advice in the United Kingdom, is duly authorised under the Financial Services and Markets Act 2000.

NOTICE
to the holders (the 'Bondholders') of the 3 3/4 PER CENT. CONVERTIBLE BONDS DUE 2009 (the 'Bonds') of Scottish and Southern Energy plc (the 'Issuer').
ISIN: XS0202561097

On 29 May 2008 the Issuer announced its intention to declare a recommended final dividend of 60.5 pence per ordinary share (the 'Dividend') for the year to 31 March 2008. This dividend is expected to be paid on 26 September 2008 to shareholders on the Issuer's register as at the close of business on 22 August 2008.

Pursuant to Part 2, Section 6 of the Conditions of the Bonds, the Issuer hereby gives notice to the Bondholders that following the payment of the Dividend, which is expected to be on 26 September 2008, an adjustment to the conversion price of the Bonds resulting from the cumulative effect of dividends paid in excess of those allowable under the terms of the Bonds as set out on page 15 of the Offering Circular Dividend will become effective and Bonds may be converted into ordinary shares of the Issuer at an effective conversion price of £8.88 per ordinary share. Bondholders should note that an exercise of conversion rights prior to 26 September 2008 will be subject to the conversion price of the Bonds prior to such adjustment.

Terms used in this Notice and not otherwise defined shall bear the meanings attributed to them in the Trust Deed.

This Notice is governed by and shall be construed in accordance with English law.

Principal Paying and Conversion Agent:

The Bank of New York

40th Floor

One Canada Square

London

E14 5AL

Attn Corporate Trust Admin

This notice is given by: Scottish and Southern Energy plc.

Registered Office : Inveralmond House, 200 Dunkeld Road, Perth PH1 3AQ.

Registered in Scotland, No. 117119