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RNS Number:5979S
South East Water Limited
08 March 2007



UK Competition Commission Notice of Provisional Findings on the proposed merger
                                       of
                      South East Water and Mid Kent Water



South East Water notes that on 8 March 2007 the UK Competition Commission
published a Notice of Provisional Findings and a Notice of Possible Remedies on
its proposed merger with the UK water only company Mid Kent Water.

South East Water notes the Competition Commission's provisional finding that the
proposed merger could be expected to cause limited prejudice to the UK economic
water regulator's (Ofwat) ability to make comparisons between water enterprises.


The UK Competition Commission's findings are preliminary and their publication
represents one of a number of steps in this ongoing inquiry.  In the next phases
of this process, we will continue to seek to persuade the UK Competition
Commission that our evidence demonstrates that no prejudice can be expected to
arise from this merger and thus it should be cleared unconditionally.

In addition, given the provisional finding of limited prejudice, we will be
entering into discussions with the UK Competition Commission to persuade them to
allow the merger to proceed, if necessary on an acceptable conditional basis, in
light of the benefits from combined water resources management and financial
benefits to customers that the merger will generate.

South East Water continues to believe that a merger of South East Water and Mid
Kent Water will deliver significant benefits to customers, the environment,
employees and shareholders.

A final decision from the UK Competition Commission regarding the merger of
South East Water and Mid Kent Water is scheduled to be made by early May 2007.



For further enquiries, please contact Jane Gould on +44 1323 416 999.




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