DIRECTORS' SHAREHOLDINGS

Kelda Group plc today announced that options over 745,673 Ordinary shares of 15
5/9 pence exercisable at 366.0 pence per share were granted on 8 January 2004
in accordance with the Company's Sharesave Scheme. The options will be
exercisable normally between 2007 and 2008.

Included within the above figure, options over 2,016 shares were granted to Mr
M G Towers, a Director of the Company.

Further information can be obtained from:

Philip Hudson

Company Secretary

01274 804110



END