KeySpan Acquisition Update

National Grid PLC
12 July 2006


                                                                    12 July 2006

                 UPDATE ON NATIONAL GRID ACQUISITION OF KEYSPAN

National Grid today announces further progress on the proposed acquisition of
KeySpan. The Committee on Foreign Investment in the United States (CFIUS) has
completed its review of the transaction and has determined there are no issues
of national security sufficient to warrant an investigation.

This follows the announcement on 10 July 2006, that the Federal Trade Commission
granted early termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act (HSR).

Remaining approvals for the acquisition include authorisation by the Federal
Energy Regulatory Commission and by state public utility regulatory commissions,
including from the New York Public Service Commission and the New Hampshire
Public Utilities Commission.



CONTACT DETAILS

Investors
David Campbell     [phone]    [phone] (m)
Richard Smith      [phone]    [phone] (m)

Media
Clive Hawkins     [phone]     [phone] (m)

Citigate Dewe Rogerson    [phone]
Anthony Carlisle          [phone](m)



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