Disposal

Severn Trent Plc announces today that it has agreed to sell Biffa Belgium to Veolia Environmental Services for €45m, approximately £31m. It is expected to complete the transaction, which is conditional on clearance from the Belgian competition authorities, before the end of June 2006. Severn Trent announced on 4 April 2006 that it intended to demerge the Biffa waste management business in the UK by the end of the year and that it was considering options for Biffa Belgium, including possible disposal. For further information contact: Peter Gavan Director of Corporate Affairs Severn Trent Plc 0121 722 4310 David Trenchard / Peter Hewer Tulchan Communications Group Ltd 020 7353 4200 Footnotes: 1. Biffa is a leading integrated waste management business in the UK, providing collection, recycling, treatment and landfill and special waste services to industrial / commercial clients and to local authorities. 2. Severn Trent Plc announced on 4 April 2006 that it intended to demerge Biffa. The announcement is available at www.severntrent.com. 3. Severn Trent's pre-close trading update on 4 April 2006, prior to its full year results on 6 June 2006, announced that Biffa Belgium is expected to record a small operating loss in the second half. This second half performance, together with a full year operating provision for environmental taxes of £4.5m (H1 £3.1m), is expected to lead to a full year PBIT loss for Biffa Belgium of around £4m to £5m.

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Severn Trent (SVT)
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