Holding in Company

Severn Trent PLC
3 July 2001


On 2 July 2001, the Company received the following notification from HSBC
Investment Bank plc:-

'We hereby notify you in accordance with Part VI Companies Act 1985 ('the
Act') that HSBC Investment Bank plc was, at the close of business on 28 June
2001, interested in 10,931,288 Ordinary Shares of Severn Trent Plc
(representing 3.18% of the total issued share capital of that class). Of these
interests, 10,881,342, representing 3.17% of the total issued share capital of
that class, were interests of a kind described in S.208(5) of the Act.

HSBC Investment Bank Holdings plc, as HSBC Investment Bank plc's parent and
HSBC Holdings plc, our ultimate parent company, were also interested by virtue
of S.203 of the Act in all of the above mentioned shares.'