Holding in Company

National Grid Group PLC
25 July 2000

The National Grid Group plc ('National Grid')

On 13 July National Grid announced having received notifications
that:

-Deutsche Bank AG London had purchased 56.5 million National Grid
ordinary shares from HSBC Investment Bank plc ('HIB') (representing
3.805% of National Grid's share capital); and that Credit Suisse
First Boston Equities Limited had also purchased 50.0 million
National Grid ordinary shares from HIB (3.367%). The economic risk
of each institutions' shareholdings had been hedged pursuant to
structured derivatives transactions between the Olayan Group,
Deutsche Bank AG London and Credit Suisse First Boston
International.

-HIB continued to have a holding in National Grid ordinary shares
and continued to have a structured derivatives transaction with
the Olayan Group. And, as a result of these transactions, the
economic exposure to 161.5 million National Grid ordinary shares
remained with the Olayan Group, as has been the case since April 1996.

National Grid yesterday received a further notification from HIB,
dated 21 July, pursuant to Section 199(5)(b) of Part VI Companies
Act 1985. Because of a decrease in the percentage level of HIB's
interests in National Grid shares resulting primarily from the
sales on 13 July detailed above; at close of business on 19 July
2000, HIB was interested in 46,961,883 shares (3.16%). Of that
disclosed interest, 44,206,640 constituted an interest by virtue of
HIB having a right to call for delivery of the shares.