The board of Kelda Group plc ("Kelda") announces the following changes.

Christopher Fisher is appointed to the board as a non-executive director with
immediate effect. Mr Fisher, aged 49, has recently been appointed senior
adviser to Montagu Private Equity and is a non-executive director of Yates
Group plc. Until earlier this year he was a managing director of Lazard, the
investment bank. There are no further details to be disclosed pursuant to
Listing Rule 16.4.

Rich Schmidt has announced his retirement from executive duties with effect
from 1 September 2003 as President and Chief Executive Officer of Aquarion
Company ("Aquarion"), Kelda's US subsidiary. He will continue as a
non-executive director of Kelda. Rich will be succeeded by Charles "Chuck"
Firlotte, who has since April 2000 been responsible for the Drinking Water
Business within Yorkshire Water. Prior to that he was Senior Vice President and
Chief Operating Officer of Aquarion's water utility business.

John Napier, Chairman, said:

These changes are part of a planned strengthening of the management and Board
of Kelda. We are pleased that Christopher Fisher is joining us and that Rich
Schmidt, who has been a key part of the development of our US water business,
has agreed to continue as a non-executive director.

Chuck Firlotte has undergone an extensive development programme within our UK
water operations and returns to lead the further progress of our Aquarion
business.

For further information contact:-

Robert Salmon

Director of Corporate Affairs

01274 692639



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