RNS Number:9785Q
Bristol Water PLC
16 October 2003

Bristol Water plc

16 October 2003


   NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, 
                         CANADA, AUSTRALIA OR JAPAN.

                               BRISTOL WATER PLC


Bristol Water plc notes the announcement made today by Bristol Water Holdings 
plc, the text of which is set out below.

                          "Bristol Water Holdings plc
                          Reminder and Dividend update


Bristol Water Holdings plc announces that it is today sending out to
Shareholders a letter reminding them of the final date for the receipt of Forms
of Proxy in respect of the Court Meeting and EGM and providing an update on
dividend payments. The text of the letter is set out below:



"Following the publication of the Listing Particulars and Scheme Circular in
relation to the proposed Scheme of Arrangement on 1 October 2003, the Board of
Bristol Water Holdings plc wishes to remind Shareholders that the latest times
and date for receipt of Forms of Proxy in relation to the Scheme for the Court
Meeting and EGM are 11.00 a.m. and 11.15 a.m. respectively on 26 October 2003.
Shareholders are encouraged by the Directors to return their Forms of Proxy both
for the EGM and the Court Meeting as soon as possible.



Since 1 October 2003, the Board has been continuing work on the potential return
of approximately #50 million of share capital before the end of the current
financial year (the "Return") and now wishes to clarify, in order to avoid any
future market uncertainty, the dividend levels it believes it will be in a
position to recommend in the future, notwithstanding the effects of the Return.



The Board therefore announces that it currently believes that, in the absence of
unforeseen circumstances, it will recommend an unchanged dividend of 14.12p per
share in respect of each of the years ending 31 March 2004 and 31 March 2005.
This would represent a significant underlying increase in the dividend per share
for the year ended 31 March 2005 given the reduction in the Company's equity
base of approximately #50 million, should the Return be implemented.



It remains the Board's intention, as set out in the Listing Particulars and
Scheme Circular to pursue a sustainable dividend cover policy broadly in line
with other companies in the sector in due course. Whilst dividend payments in
the year ending 31 March 2006 and beyond will be clearly dependent upon the
outcome of Ofwat's periodic review for the five years 2005 - 2010, which will
not be known until November 2004 at the earliest, the Board currently
anticipates being able to recommend dividends of at least #5.0 million per annum
throughout the period covered by the next Ofwat periodic review as compared with
the current level of #5.23 million.



Actual dividends declared or recommended will also depend, inter alia, on the
trading performance of the Group, pension charges, the cost of debt and the
effect of the implementation of International Accounting Standards."



Copies of the letter to Shareholders have been submitted to the UK Listing
Authority, and will shortly be available for inspection at the offices of
Herbert Smith, Exchange House, Primrose Street, London EC2A 2HS and at the UK
Listing Authority's Document Viewing Facility, which is situated at:



Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS



Terms used in this announcement shall have the same meaning as those in the
Listing Particulars and Circular sent to Shareholders on 1 October 2003.



Enquiries

Bristol Water Holdings plc                     Tel: 0117 953 6407
Alan Parsons, Chief Executive
Andy Nield, Group Finance Director


Dresdner Kleinwort Wasserstein                 Tel: 020 7623 8000
Ishbel Macpherson, Managing Director



Dresdner Kleinwort Wasserstein Limited, which is authorised and regulated by the
Financial Services Authority, is acting for Bristol Water Holdings plc and no
one else in connection with the Scheme and is not acting for any person other
than Bristol Water and will not be responsible to any person other than Bristol
Water Holdings plc for providing the protections afforded to its customers or
for providing advice in connection with the Scheme and the other matters
described herein."




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            The company news service from the London Stock Exchange
END

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