Further re Niagara Mohawk

National Grid Group PLC
31 January 2002


           NATIONAL GRID COMPLETES THE ACQUISITION OF NIAGARA MOHAWK

National Grid Group plc ('National Grid') announces that it has completed its
$3.0 billion (£2.1 billion) acquisition of Niagara Mohawk Holdings, Inc.
('Niagara Mohawk'), which will become effective at 4:00 p.m. (New York time)
today, 31 January 2002.

The combination of the two companies will more than double the size of National
Grid's U.S. operations, creating the largest transmission network and
distribution business in the New York / New England market and the eighth
largest electricity utility in the US. The newly combined companies will serve
more than 3.3 million customers.

Richard P. Sergel will continue as President and Chief Executive Officer of the
enlarged National Grid USA. William E. Davis, Chairman and Chief Executive of
Niagara Mohawk, will be appointed Chairman of National Grid USA and will also
join the National Grid Board as an executive director for two years. Dr. Bonnie
G. Hill, one of Niagara Mohawk's non-executive directors, will also join the
National Grid Board as a non-executive director.

The acquisition was announced on 5 September 2000 and received its final
regulatory approval on 16 January 2002.


                                - End -

ENQUIRIES:

National Grid:

Investors

Marcy Reed [phone] [phone](m)

Terry McCormick [phone] [phone](m)

Louise Clamp [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)



                      This information is provided by RNS
            The company news service from the London Stock Exchange