Director Shareholding

Transfer of shares by the Trustee of the Severn Trent Plc Employee Share
Ownership Trust

The Company has been advised by the Trustee of the Severn Trent Plc Employee
Share Ownership Trust that, on 15 June 2004, 367,513 Ordinary Shares of 65 5/19
p each in the Company were transferred for nil consideration to participants in
the Long Term Incentive Plan (including executive directors of the Company as
indicated below) pursuant to awards made under that plan in 2001.

The executive directors of the Company are potential beneficiaries under the
Trust and therefore (except as disclosed below) their interest in such shares
ceased on such transfer.

Name of director         Number of shares      
                                               
Mr J K Banyard           9,115                 
                                               
Mr M J Bettington        11,864                
                                               
Mr B Duckworth           12,154                
                                               
Mr A S Perelman          18,542                
                                               
Mr R M Walker            48,435                

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