Disposal

RNS Number:0594M
East Surrey Holdings PLC
24 October 2001

Not for release, publication or distribution in or into the United States,
Canada, Australia or Japan.

PRESS ANNOUNCEMENT

FOR IMMEDIATE RELEASE

24 October 2001


EAST SURREY HOLDINGS PLC ("EAST SURREY")


#24.1 MILLION DISPOSAL OF INVESTMENT IN BROCKHAMPTON HOLDINGS PLC 
(" BROCKHAMPTON")


Further to the announcement by N M Rothschild & Sons Limited on behalf of
South Downs Limited earlier today of its intention to make an offer for
Brockhampton, the Portsmouth water supply business, East Surrey announces that
it has entered into an undertaking to accept this offer in respect of its
entire shareholdings in Brockhampton.



East Surrey holds 613,500 Ordinary Shares and 17,301,512 'A' Ordinary Shares
in Brockhampton, for which offers will be made at 319p and 128p in cash per
share respectively, representing premia of 25.1 per cent. and 23.7 per cent.
respectively to the middle market prices at the close of business yesterday.



Once this offer becomes unconditional, East Surrey will be entitled to receive
in total #24.1 million in cash compared to a book value of this investment of 
#21.6 million.  For the year ended 31 March 2001, East Surrey received dividends
on its investment in Brockhampton totalling #1.1 million.



East Surrey, the innovative regional utility company with diversified
interests in the natural gas market through its 24.5 per cent. stake in
Phoenix Natural Gas Limited, will use the proceeds of the sale for the further
development of the Group's businesses and the enhancement of shareholder
value.



Commenting on the transaction, Pat Barrett, Chairman, said:  "The sale of this
stake is in line with our current strategy and it will also realise the
significant uplift in value sought for all the shareholders of Brockhampton."


Enquiries:


East Surrey Holdings plc                                          01737 772 000
Phil Holder


Hawkpoint Partners Limited                                        020 7665 4500
Paul Baines


Citigate Dewe Rogerson Limited                                    020 7638 9571
Seb Hoyle


The directors of East Surrey Holdings plc accept responsibility for the
information contained in this announcement.  To the best of the knowledge and
belief of the directors of East Surrey Holdings plc (who have taken all
reasonable care to ensure that such is the case), the information contained in
this announcement is in accordance with the facts and does not omit anything
likely to affect the import of such information.

Hawkpoint Partners Limited, which is regulated in the United Kingdom by The
Securities and Futures Authority Limited is acting exclusively for East Surrey
Holdings plc in connection with this transaction and no one else, and will not
be responsible to anyone other than East Surrey Holdings plc for giving the
protections afforded to customers of Hawkpoint Partners Limited nor for giving
advice in relation to this transaction.