Trading Statement

RNS Number:3839Q
AWG PLC
01 October 2003



For Immediate Release                                            1 October 2003

                                    AWG Plc
                                Trading Statement

AWG Plc is today issuing a statement on trading for the six months ended 30
September 2003.

Anglian Water Services (AWS)

The regulated water and wastewater business, AWS, has continued to outperform
the regulatory settlement, particularly in respect of capital expenditure. It
has also made good progress against service delivery targets in the first six
months of the current financial year, and is in line with management
expectations.

In Ofwat's overall performance assessment, published recently, AWS is now ranked
fourth amongst companies in England and Wales for the period 2002/3 compared
with sixth the previous year.

On 4 August AWS submitted its Draft Business Plans to Ofwat in respect of the
regulatory review process for the next regulatory period commencing 1 April
2005.

Infrastructure Management Business (IMB)

The order book for the IMB now stands at #1.77 billion, including orders worth
#152 million representing more than 30 contracts won in the second quarter of
the year.

The IMB businesses are performing in line with management expectations, with the
exception of Utility Services, which has experienced margin pressure in the
first half of the year.

Operating profits and cashflow in the IMB are more than usually weighted towards
the second half of the financial year.

Net debt

Group net debt at 30 September 2003 has increased in line with the company's
expectations, by #250 million to approximately #3.5 billion. Included in this is
the cost of the #177 million special payment to shareholders.

Exceptional charges

The Group anticipates modest exceptional charges at the half-year, principally
in respect of restructuring of group companies.

                                      Ends

Contact details:

Elliott Mannis                                             01480 323526
group finance director
Mike Keohane                                               01480 323097
group director of HR and communications
Terry Garrett                                              020 7067 0717
Weber Shandwick Square Mile




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