AGM Statement

Severn Trent PLC
26 July 2002

                              Severn Trent Plc AGM

At Severn Trent's AGM in Nottingham today, Robert Walker, the Group Chief
Executive, will summarise the performance of the Group as follows:

'Overall 2001/02 has been another year of progress for the Severn Trent Group.
In 2001/02, Group turnover was up by 6.7% to just under £1.8 billion and profit
before interest, tax, goodwill amortisation and exceptional costs was up by 4.6%
to £418.8 million.

Severn Trent Water's turnover was up £12.7 million to £899.9 million and its
profit before interest and tax up £3.6 million to £334.1 million. Biffa
increased its turnover by 24.9% to £494.8 million and its profit before
interest, tax, goodwill amortisation and exceptional costs was up by 59.7% to
£73.0 million, reflecting the benefit of the UK Waste acquisition. Services'
turnover increased by 8.9% to £381.6 million, but profits fell by 16.0% to £32.0
million.

We said at the announcement of our year-end results on 11 June that, overall,
the Group is likely to experience a challenging year in 2002/03. Shareholders
should not assume that the inherent profit reduction for Severn Trent Water in
2002/03, which reflects its broadly unchanged prices, can be made up by the
performance of the rest of the Group.

Looking forward, we aim to grow shareholder value by establishing Severn Trent
as the UK's leading supplier of environmental services. Already Biffa is the
UK's largest supplier of integrated waste management services. In the US we
intend to build on our leadership position in the analytical services market.'

Enquiries:
Robert Walker                         Severn Trent Plc             0121 722 4295
Group Chief Executive

Alan Perelman                         Severn Trent Plc             0121 722 4295
Group Finance Director

Peter Gavan                           Severn Trent Plc             0121 722 4295
Director of Corporate Affairs

Emma Nobbs                            Severn Trent Plc             0121 722 4295
Investor Relations Manager

Simon Holberton or                    Brunswick Group Ltd          020 7404 5959
Catherine Bertwistle



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