SEVERN TRENT PLC

Severn Trent publishes paper on weighted average cost of capital

5 August 2008

Severn Trent Water is to submit its draft business plan to Ofwat on 11 August 2008, which will be used by the regulator to determine customer water prices from 2010 to 2015.

Severn Trent this morning publishes its paper, The World has turned: but which way? setting out its views on issues to be considered in how the weighted average cost of capital (WACC) should be determined.

The World has turned: but which way? is available on the company's website at www.severntrent.com. ENQUIRIES: Andrew Marsh Severn Trent 0121 722 4555 External Affairs