Approval of STID Proposal

Affinity Water Programme Finance Limited

(the "Company")

£80 million of 3.625% Sterling Denominated Fixed Rate Bonds due 2022£250 million of 4.5% Sterling Denominated Fixed Rate Bonds due 2036£150 million of 1.548% Sterling Denominated Retail Price Index-Linked Bonds due 2045

issued by the Company and guaranteed by Affinity Water Limited ("Affinity Water")

16 June 2015

STID Proposal to Introduce Additional Financial Covenants has been passed

Affinity Water Programme Finance Limited announces that the STID Proposal submitted on 22 May 2015 regarding the introduction of Additional Financial Covenants to the Finance Documents has been passed by the Majority Creditors pursuant to clause 8.11 of the STID (Security Trust and Intercreditor Deed).

For further information, please visit www.affinitywater.co.uk/investor-relations.aspx or contact:

investor.relations@affinitywater.co.uk or

shaun.kennedy@affinitywater.co.uk

Shaun Kennedy, Treasurer

Affinity Water Programme Finance Limited

Tamblin Way

Hatfield

Hertfordshire

AL10 9EZ

DISCLAIMER - INTENDED ADDRESSEES

This announcement is a communication to the market. Nothing in this announcement constitutes an offer of securities for sale in the United States or any other jurisdiction. This announcement does not constitute a prospectus or a prospectus equivalent document.

This announcement has been delivered to you on the basis that you are a person into whose possession this announcement may be lawfully delivered in accordance with the laws of the jurisdiction in which you are located and you may not, nor are you authorised to, deliver this announcement to any other person. The distribution of this announcement in jurisdictions other than 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 laws of any such jurisdiction.

Your right to access this service is conditional upon complying with the above requirement