RNS Number:7596N
Bristol Water Holdings PLC
21 July 2003

To be released at 11.00am 21/7/03



                                                                    21 July 2003

For immediate release


                         Bristol Water Holdings plc
               Returning value to Shareholders and trading update

Moger Woolley, the Chairman of Bristol Water Holdings plc (the "Company"), is
announcing to the Company's AGM today that the Board is actively reviewing
methods of returning value to shareholders.  This is with the support of the
Company's largest shareholder, Ecofin Water and Power Opportunities plc, and
following detailed discussions with them and the Company's advisers.  The Board
presently believes that, on conclusion of further work and after implementing
any necessary restructuring, they should be able to recommend the return of
approximately #50 million, equivalent to approximately #6.75 per ordinary share
of #1 each (approximately #1.35 per share after the share split becomes
effective).


Following the return of value, the Board would expect to adopt a sustainable
dividend cover policy in line with other companies in the sector.


A return of value is likely to require, inter alia, the approval of the Court
and the approval of shareholders.  It would be subject to finance being
available on suitable terms and would result in an increase in the level of
borrowings in the regulated business.


Moger Woolley will also provide a trading update, stating that trading since the
year end has been satisfactory throughout the group and continues to be in line
with the Board's expectations. In respect of the potential sale of Lawrence, the
Company's contracting subsidiary, and GDC, its sister company, the Company has
held discussions with a number of parties but has not yet received a proposal
that the Board believes offers value for the two companies.  The Directors are
continuing to talk to certain parties and are reviewing alternative options.


A further announcement will be made in due course.


Enquiries



Alan Parsons, Chief Executive             0117 953 6407
Andy Nield, Group Finance Director



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