Capital Reorganisation

Severn Trent PLC
31 October 2000


Severn Trent Plc (the 'Company') announced on 9 August 2000 that it intended
to reduce its authorised share capital from £475,000,000 to £339,483,121 67/95
by cancelling its B Shares and returning the nominal value of 38 pence each to
the holders of the B Shares.  A resolution to that effect was passed at the
Company's Annual General Meeting on 1 August 2000.

On 25 October 2000 the High Court of Justice sanctioned the reduction in the
Company's share capital and the B Shares will be cancelled with effect from 1
November 2000.  Cheques in respect of the nominal value of the cancelled B
shares are expected to be despatched to B shareholders on or about 10 November
2000.