Acquisition

RNS Number:3797T
East Surrey Holdings PLC
17 December 2003


PRESS ANNOUNCEMENT

17 December 2003

EAST SURREY HOLDINGS PLC ("EAST SURREY HOLDINGS" OR THE "COMPANY")

COMPLETION OF THE ACQUISITION OF THE REMAINING 75.5 PER CENT OF PHOENIX
NATURAL GAS LIMITED

East Surrey Holdings is pleased to confirm that the acquisition of the 75.5 per
cent. of Phoenix Natural Gas Limited that it did not already own completed
earlier today.

For further information contact:

East Surrey Holdings plc                                          01737 772000
Phil Holder, Managing Director
Nick Fisher, Finance Director

Phoenix Natural Gas Limited                                      028 9055 5500
Peter Dixon

Hawkpoint Partners Limited                                       020 7665 4500
Paul Baines
Graham Paton

Collins Stewart Limited                                          020 7523 8350
Stephen Roberts
Mark Connelly

City Profile                                                     020 7448 3244
Simon Courtenay

Web: www.eastsurreyholdings.com

The directors of East Surrey Holdings accept responsibility for the information
contained in this announcement. To the best of the knowledge and belief of the
directors of East Surrey Holdings (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 authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for East
Surrey Holdings and no one else in connection with the Acquisition and the
Placing and Open Offer and will not be responsible to anyone other than East
Surrey Holdings for providing the protections afforded to its customers or for
providing advice in relation to the contents of this announcement or any
transaction or arrangement referred to herein.

Collins Stewart Limited, which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for East Surrey
Holdings and no one else in connection with the Acquisition and the Placing and
Open Offer and will not be responsible to anyone other than East Surrey Holdings
for providing the protections afforded to its customers or for providing advice
in relation to the contents of this announcement or any transaction or
arrangement referred to herein.

The New Ordinary Shares to be issued in connection with the Placing and Open
Offer have not been nor will they be registered under the United States
Securities Act of 1933 (as amended) or under the securities laws of any state of
the United States, any possession or territory of Canada, Japan, Australia or
the Republic of Ireland.



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