Kelda Group QUEST Trustees Limited ("the QUEST Company") (a wholly owned
subsidiary of Kelda Group plc permitted to subscribe for shares in the company,
to satisfy options granted under the Company's shares option scheme), has today
purchased 2,375 ordinary shares of 15 5/9 pence each at a price of 401.0 pence
per share. The shares were purchased from the Company's employee share trust
(ESOP). The QUEST Company then transferred 5,650 shares to employees on the
exercise of options under the Company's save-as-you-earn share option scheme.

All employees of the Company (including executive directors) are potential
beneficiaries of the QUEST and as such are deemed by the Companies Act to be
interested in all the shares held in both trusts. The directors' technical
interest in the shares transferred ceased on transfer.

Further information can be obtained from:

Philip Hudson

Company Secretary

01274 804110



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