RNS Number:4366R
East Surrey Holdings PLC
29 October 2003


                            East Surrey Holdings PLC

                 EAST SURREY EXPANDS ES PIPELINES BUSINESS WITH
                       ACQUISITIONS FROM UNITED UTILITIES


East Surrey Holdings plc, ("East Surrey"), the water and gas utility company,
has announced that it has acquired two local gas network businesses from United
Utilities PLC.

East Surrey has paid #3.1 million in cash for two businesses, United Utilities
Gas Networks Limited and United Utilities Gas Pipelines Limited. Both businesses
are local independent gas transporters and will be integrated into East Surrey's
existing ES Pipelines division ("ESP"). These acquisitions will enlarge ESP's
existing operations, increasing revenue by approximately #0.55 million per annum
and will give the business a foundation for further growth. The terms of the
acquisition include further payments of approximately #0.6 million on completion
of a small number of existing development contracts, which will deliver further
income streams

Phil Holder, Managing Director commented

" Since we established ES Pipelines in 2000, the business has made good
progress. The two businesses that we have bought will take ESP to its next stage
of development. The acquisitions are in line with our strategy to build a robust
group focusing on regulated infrastructure businesses."

Rob Wallace, General Manager of ES Pipelines commented

" We are delighted to have acquired these businesses from United Utilities. We
are now on track to build real scale in the ES Pipelines business. I am
confident that with this acquisition we will generate significant returns for
the Group. I am especially pleased that the acquisition will increase the range
of customers with whom we work and it will strengthen our existing relationship
with United Utilities."

                                     -ends-

Date: 29 October 2003
For further information contact:

East Surrey Holdings plc                      City Profile
Phil Holder, Managing Director                Simon Courtenay
Nick Fisher, Finance Director                 Tel: 020-7448-3244
Tel: 01737-772000
Web: www.eastsurreyholdings.com
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                      This information is provided by RNS
            The company news service from the London Stock Exchange

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