Merger Update

National Grid Group PLC
14 June 2002


For immediate release  14 June 2002




                            National Grid Group plc

                                 Merger Update


Further to the announcement on 22 April 2002 of the recommended merger of equals
of National Grid Group plc ('National Grid') with Lattice Group plc ('Lattice')
to create National Grid Transco (the 'Merger'), National Grid announces that, in
addition to the previously announced appointments of Chairman and Deputy
Chairman, the non-executive directors of National Grid Transco following the
completion of the Merger will be:


- John Grant (currently a non-executive director of National Grid);

- Kenneth Harvey (currently a non-executive director of Lattice);

- Bonnie Hill (currently a non-executive director of National Grid);

- Paul Joskow (currently a non-executive director of National Grid);

- Stephen Pettit (currently a non-executive director of Lattice); and

- George Rose (currently a non-executive director of Lattice).


Bob Faircloth has notified the Board of National Grid that he will retire
following the Board meeting to be held in September 2002 irrespective of whether
the Merger has completed by that date. Bill Davis and Richard Reynolds will step
down from the National Grid Board upon completion of the Merger, although Bill
Davis will continue with his other roles within the National Grid Transco group,
including as Chairman of National Grid USA.

National Grid also announces that the shareholder documents relating to the
Merger have been published today. National Grid is issuing a circular to its
shareholders (the 'National Grid Circular') convening the National Grid
Extraordinary General Meeting to approve the Merger as well as publishing
Listing Particulars relating to the admission to the Official List of the UK
Listing Authority of up to 1,400,000,000 new ordinary shares to be issued
pursuant to the Merger (the 'Listing Particulars'). Lattice is also issuing a
circular to its shareholders today, containing details of the scheme of
arrangement between Lattice and its shareholders (the 'Lattice Scheme Circular')
pursuant to which the proposed Merger will be implemented as well as notices
convening the Lattice shareholder meetings to approve the Merger. The Lattice
Scheme Circular also contains summary listing particulars of National Grid.

These documents will be shortly available to the public for inspection at the UK
Listing Authority's Document Viewing Facility which is situated at: Financial
Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS (tel.
no. [phone]) during normal business hours on any weekday (Saturdays,
Sundays and public holidays excepted) until completion of the Merger.

The National Grid Circular and the Listing Particulars will also be made
available on the National Grid website at www.nationalgrid.com. Copies will also
be available from National Grid's head office at 15 Marylebone Road, London NW1
5JD. The Lattice Scheme Circular is available on the Lattice website at
www.lattice-group.com. Copies of the Lattice Scheme Circular and the Listing
Particulars will also be available from Lattice's head office at 130 Jermyn
Street, London SW1Y 4UR.



Enquiries:

Investor Relations
Marcy Reed                                   44 (0) 20 7312 5779
Terry McCormick                              44 (0) 20 7312 5785
Louise Clamp                                 44 (0) 20 7312 5783


Media Relations
Clive Hawkins                                44 (0) 20 7312 5757


Citigate Dewe Rogerson
Anthony Carlisle                             44 (0) 20 7638 9571




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