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Severn Trent Pre-close Trading Statement

3rd October 2006

Severn Trent is issuing the following trading update ahead of the close period prior to the announcement of results on 7 December 2006 for the six months ended 30 September 2006.

The Board considers that overall the Group has delivered first half-year performance that is broadly consistent with its expectations for the full year.

On 13 September, Severn Trent announced the terms of the Biffa demerger, together with details of a special dividend and share consolidation of Severn Trent Ordinary Shares. Subject to, among other things, a resolution to approve the Demerger being passed at an extraordinary general meeting on Friday 6 October, dealings in Biffa shares are expected to commence on Monday 9 October.

As the demerger of Biffa is therefore expected to occur during the second half, Biffa will be included in the results of the Group's continuing operations for the first half year.

Biffa's prospectus contains a statement that based on Biffa's financial performance since 1 April 2006, Biffa continues to trade in line with Biffa's Directors' expectations and that the directors of Biffa have confidence in Biffa's prospects for the current financial year.

 



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