NOTIFICATION OF INTEREST OF DIRECTORS AT KELDA GROUP plc                                        

Kelda Group plc ("Kelda") has been notified today that Kelda Group Employees'                   
Trustees Limited ("the Trustee") the trustee of an employee benefit trust                       
established by Kelda in 1996, today made the following award of ordinary shares                 
to directors of Kelda under a long term incentive plan ("the Plan") established                 
by Kelda pursuant to the rules of the Plan.                                                     

Kevin Whiteman                                   17,831 Ordinary Shares                         

Pursuant to the Plan, the Trustee sold 7,312 of the shares to meet the tax                      
liabilities arising from the transfers.                                                         

The Trustee has also awarded 21,196 Ordinary Shares to participants, not being                  
directors of Kelda, under the Plan. 8,691 of those shares have been sold to                     
meet tax liabilities.                                                                           

All employees of Kelda (including executive directors) are potential                            
beneficiaries of the employee benefit trust and as such, are deemed by the                      
Companies Act 1985 to be interested in all of the shares held in the Trust.                     

For further information contact:-                                                               
                                                                                                
Philip Hudson, Group Company Secretary - Tel:- 01274 804110                                     
                                                                                                
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