Transfer by employee trust

Northumbrian Water Group PLC
01 February 2007



                          Northumbrian Water Group plc


                                (the "Company")


                             Sale by employee trust


The Company has been informed that Northumbrian Water Share Scheme Trustees
Limited (the Trustee of the NWG Long Term Incentive Plan) has today, 1 February
2007, transferred, at nil cost, 18,134 ordinary 10 pence shares as a result of
the exercise of an LTIP award by someone who is neither a director of the
Company nor a person discharging managerial responsibility ("PDMR"). The
transfer of these shares is pursuant to a conditional award of shares made on 27
January 2004.

Following this reduction, the Trustee holds 847,310 shares, representing 0.163%
of the Company's issued share capital.

The Trustee holds these shares in order to satisfy awards made under the
Company's LTIP, and so John Cuthbert and Chris Green, as executive directors of
the Company, and Ceri Jones and Graham Neave, as PDMRs of the Company, are
potential beneficiaries of these shares held by the Trustee.

This announcement is made in accordance with the requirements of DTR 3.1.4 R(1).



Name of contact and telephone number for queries
Jayne Powell, Assistant Company Secretary
Tel: [phone]




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