Disposal

Disposal 

    LONDON--(BUSINESS WIRE)--August 1, 2003--

   Sale of Goldfish credit card and personal loan businesses agreed

Centrica plc today announced that Goldfish Bank Ltd has reached
agreement to sell to Lloyds TSB for cash the Goldfish credit card,
personal loan business and associated business assets for a premium of
£112.5m or around 14% of net credit card receivables as at 30 June,
2003. The transaction also includes the Goldfish brand and loyalty
programme.

Centrica and Lloyds TSB have economic interests of 70 per cent and 30
per cent respectively in Goldfish Bank. The consideration will
ultimately be distributed on a pro rata basis to Centrica and Lloyds
TSB following an orderly closure of the bank's activities.

In addition, Goldfish Bank will receive from Lloyds TSB an amount
equal to the net book value of the finance receivables as at
completion of around £900m, such monies to be applied in repayment of
Goldfish Bank's customer deposits and bank loans.

Centrica believes this agreement will deliver the best long term value
for its shareholders. Goldfish remains a sub-scale business operating
in an increasingly competitive market and a tight regulatory climate.
A sale to Lloyds TSB avoids very significant costs in migrating
customers from Goldfish which would have been incurred under a sale to
a third party.

The Goldfish credit card and its associated loyalty scheme were
originally developed as a customer retention initiative within the
group's energy supply business. Since then, Centrica has retained its
position as the UK's leading household gas supplier and transformed
itself into the leading domestic electricity supplier, with an overall
household energy market share of around 41 per cent. Goldfish credit
card holders will continue to be able to redeem their loyalty points
against British Gas bills.

Sir Roy Gardner, Chief Executive of Centrica, said: 'Centrica has a
rigorous approach to managing its businesses for value. Goldfish has
developed into a very strong brand but we believe that the capital
investment required to achieve the necessary scale would be better
directed towards our core businesses.'

The transaction is expected to complete in the fourth quarter of 2003.

Enquiries:

Centrica media relations            01753 494085
Centrica investor relations         01753 494900

Notes:

1.  As at 30 June 2003, Goldfish's net finance receivables (credit
    card and personal loans) had a net book value of around £900m. The
    credit card portfolio comprised approximately 1.18 million card
    holders and the Goldfish personal loans book comprised over 11,000
    accounts as at 30 June 2003, while the Goldfish retail savings
    book had over 17,000 accounts.

2.  During the six months to 30 June 2003, Goldfish Bank made an
    operating loss of £30 million.

3.  Centrica estimates a net loss on disposal as at completion of
    approximately £45m, net of tax and minority interests after the
    write-off of goodwill and the estimated costs of disposal. The
    disposal will be shown as an exceptional item in the second half
    of 2003.

4.  The Goldfish Bank joint venture structure will remain in place at
    least until it has fulfilled all its obligations in accordance
    with banking regulations. Centrica will apply such monies then
    received to reducing group net debt.

5.  Following completion, Goldfish Bank will outsource the management
    of its savings account to Lloyds TSB for a transitional period and
    will continue to honour its commitment to savers under its 'Price
    Promise' to track base rates.


   Short Name: Centrica PLC
   Category Code: DIS
   Sequence Number: 00007837
   Time of Receipt (offset from UTC): 20030801T060316+0100