Disposal

Scottish & Southern Energy PLC 03 April 2006 Scottish and Southern Energy (SSE) PLC has completed the sale of Thermal Transfer Limited, its specialist service provider to the biotech and pharmaceutical industries, to ETDE, the electrical contracting/maintenance subsidiary of the French-owned Bouygues Construction, for the sum of £20 million in cash. Since it acquired Thermal Transfer in 1992, SSE has continued to invest in its capabilities and expertise as a leading UK, high specification provider. It has now taken the decision to leave the turnkey design and build market. The sale will allow SSE's core contracting business, Southern Electric Contracting, to continue developing its mechanical and electrical (M&E) capability, providing services to end-user customers, supported by its local profit centre structure. Within the last 18 months, Southern Electric Contracting has acquired two regional contracting businesses - East Anglian-based Eastern Contracting and Harrison Smith in West Yorkshire. In February, its joint venture with The Royal Bank of Scotland, Tay Valley Lighting, was appointed by Leeds City Council as preferred bidder for its street lighting PFI (Private Finance Initiative). The company's presence in the north of the country has been further strengthened with the opening of a sixth regional office in Fort William by its Scottish business, Scottish-Hydro Contracting. 'Ian Marchant, Chief Executive of SSE, said: 'Thermal Transfer has built up a strong reputation, customer and skills base in a specialist sector, and we believe it will be in a good position to develop its business under new ownership. 'Southern Electric Contracting has gone from strength to strength over the past few years and is now fully focused on capitalising on the significant opportunities it has created over the last 18 months.' /Cont... In its full year results at the end of May 2006, SSE expects to report that its Contracting Group has enjoyed another year of growth in operating profit. SSE was advised on the sale of Thermal Transfer by KPMG Corporate Finance. Enquiries to: Scottish and Southern Energy Alan Young, Director of Corporate Communications 0870 900 0410 Denis Kerby, Media and Investor Relations Manager 0870 900 0410 This information is provided by RNS The company news service from the London Stock Exchange

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