Statement re Ofwat Confirmation

Severn Trent Plc notes the announcement today by Ofwat that it has confirmed
its fine of £35.8 million for deliberately providing false information to Ofwat
and for delivering poor service to its customers.

Severn Trent will now study the Ofwat decision and respond in due course.

For further information contact:

Peter Gavan

Director of External Affairs

Severn Trent

Andrew Marsh

Public Affairs Manager

Severn Trent

Telephone: [phone]