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Pre Close Period Trading Update 4 April 2006

4th April 2006

Pre-Close Period Trading Update - 4 April 2006 Severn Trent Plc is issuing the following trading update prior to announcing its full year results on 6 June 2006. The Board considers that the Group has delivered an overall encouraging operating performance in the year, consistent with its expectations and prior guidance.

Profit Before Interest and Tax (PBIT) for Severn Trent Water for the year is expected to be some 30% - 35% higher than the prior year. This is principally due to a 15.2% increase in prices, including inflation, applied from 1 April 2005. Severn Trent Water's cost reduction plans have been progressing well, in line with management's expectations.