RNS Number:7634N
Bristol Water Holdings PLC
21 July 2003

                                                               

For immediate release                                               21 July 2003


                              Bristol Water Holdings plc
                                 AGM Statement


At the Annual General Meeting of Bristol Water Holdings plc (the "Company"),
held earlier today, all the resolutions were duly passed.  These included the
approval of the changes to the Company's Articles of Association and share
capital structure together with general authorities to issue shares and to
purchase its own shares.  The non-voting ordinary shares in the Company have now
been enfranchised and re-designated as ordinary shares in Bristol Water Holdings
plc.  The "five for one" share split of all ordinary shares is expected to take
effect from 28 July 2003.



Your attention is drawn to the announcement released earlier today by the
Company, the full text of which is set out below:



"Moger Woolley, the Chairman of Bristol Water Holdings plc, 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



END


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