Severn Trent Regulatory News (SVT)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

11 June 2013

For immediate release

LONGRIVER PARTNERSNO INTENTION TO MAKE AN OFFER FOR SEVERN TRENT PLC ("SEVERN TRENT" OR THE "COMPANY")

On 14 May 2013, the board of directors of Severn Trent (the "Severn Trent Board") announced that it had received an approach from a consortium made up of Borealis Infrastructure Management Inc. ("Borealis"), Kuwait Investment Office ("KIO") and Universities Superannuation Scheme Limited ("USS") (together, "LongRiver" or the "Consortium") with a view to a proposal being made to acquire all of the issued and to be issued shares of Severn Trent. On 7 June 2013, LongRiver made a pre-conditional cash offer of 2,200 pence, inclusive of the final dividend of 45.51 pence per Severn Trent share proposed by the Severn Trent Board on 30 May 2013 (the "Pre-conditional Offer"). On 10 June 2013, LongRiver announced that it would not put forward a further proposal for the Company in the absence of meaningful engagement. No meaningful engagement between the parties has occurred.

Having reviewed all publicly available information available to it on the Company, and in the absence of any meaningful engagement with the Severn Trent Board, LongRiver will not increase its Pre-conditional Offer.

In accordance with the requirements of the UK City Code on Takeovers and Mergers (the "Takeover Code"), the Consortium confirms that it does not intend to make an offer for Severn Trent. Accordingly, the Consortium is bound by the restrictions under Rule 2.8 of the Takeover Code.

For the purposes of Rule 2.8 of the Takeover Code, each of Borealis, KIO and USS reserves the right to announce an offer or possible offer for Severn Trent or make or participate in an offer or possible offer for Severn Trent and/or take any other action otherwise precluded under Rule 2.8 of the Takeover Code within six months of the date of this announcement in the circumstances described in note 2 to Rule 2.8 of the Takeover Code.

ENQUIRIES:

Pelham Bell Pottinger +44 (0) 20 7861 3232

Gavin Davis

Stephen Benzikie

Deutsche Bank +44 (0) 20 7545 8000

Alan Brown

Andrew Congleton

Martyn Nicholas

James Agnew (Corporate Broking)

RBC Capital Markets +44 (0) 20 7653 4000

Dai Clement

Kevin Smith

Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervisory Authority) and authorised and subject to limited regulation by the Financial Conduct Authority. Deutsche Bank is acting as financial adviser to the Consortium and no one else in connection with the contents of this announcement and will not be responsible to anyone other than the Consortium for providing the protections afforded to its clients or for providing advice in connection with the contents of this announcement or any matter referred to herein.

Deutsche Bank AG is authorised under the Financial Conduct Authority and is acting as financial adviser to the Consortium and no one else in connection with the contents of this announcement and will not be responsible to anyone other than the Consortium for providing the protections afforded to clients, or for providing advice in relation to any matters referred to herein.

RBC Europe Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is acting as financial adviser to the Consortium and no one else in connection with the contents of this announcement and will not be responsible to anyone other than the Consortium for providing the protections afforded to clients, or for providing advice in relation to any matters referred to herein.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.

The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.