Further re Niagara Mohawk

National Grid Group PLC
25 January 2002


National Grid Scheme of Arrangement Sanctioned

On 7 January 2002 National Grid Group plc ('National Grid') announced that its
shareholders had approved the introduction of a new holding company for the
group, New National Grid plc ('New National Grid'), which is to be effected by
means of a scheme of arrangement (the 'Scheme') under section 425 of the
Companies Act 1985.

Upon the Scheme becoming effective, all existing National Grid shares will be
cancelled and replaced with the same number of shares in New National Grid.

Earlier today, the High Court sanctioned the Scheme without modification.
National Grid expects that:


  • it will implement the Scheme on Thursday 31 January 2002 and that
    immediately thereafter the name of New National Grid will be changed to
    National Grid Group plc;

  • the Scheme Record Date will be 30 January 2002; and

  • new share certificates will be despatched no later than 14 February 2002.

Subject to the receipt of the relevant certificates by the UK Listing Authority,
dealings in New National Grid Shares issued pursuant to the Scheme are expected
to commence on the London Stock Exchange under the name of National Grid Group
plc and the symbol NGG at 8:00 a.m. (London time) on the morning of 31 January.
Dealings in New National Grid American Depositary Shares arising from the Scheme
are expected to commence on the New York Stock Exchange under the name of
National Grid Group plc and the symbol NGG at 9.30 a.m. (New York time) on the
same morning.

National Grid's acquisition of Niagara Mohawk is expected to complete on 31
January 2002.

Forward-Looking Statements

This statement contains certain statements that are neither reported financial
results nor other historic information. These statements are forward looking
statements within the meaning of the safe-harbour provisions of the U.S. federal
securities laws. Because these forward-looking statements are subject to risks
and uncertainties, actual future results may differ materially from those
expressed in or implied by the statements. Many of these risks and uncertainties
relate to factors that are beyond the companies' ability to control or estimate
precisely, such as the completion of the acquisition of Niagara Mohawk, future
market conditions and responses by competitors to deregulation, new regulatory
or legislative requirements, the future actions or decisions of federal or state
governmental regulators, the timing and extent of changes in supply and demand
of, and prices of, gas and electricity and other risk factors detailed in
National Grid's reports filed with the SEC. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date of this document.



ENQUIRIES:

National Grid:

Investors

Marcy Reed [phone] [phone](m)

Terry McCormick [phone] [phone](m)

Karen Shih  [phone]



Media

Susan Stevens [phone] [phone](m)

Clive Hawkins [phone] [phone](m)

Citigate Dewe Rogerson: [phone]

Anthony Carlisle [phone](m)





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