Bondholder Announcement

RNS Number:3135N
Eastern Electricity PLC
19 November 2001


                                                              19 November 2001

Implication for Eastern Electricity Limited and TXU Europe bondholders of the
sale of Eastern Electricity's U.K. distribution business by TXU Europe

In relation to the announcement today of the sale of Eastern Electricity
Limited, the UK distribution business of TXU Europe, and TXU Europe's 50 per
cent interest in 24Seven, TXU Europe outlines specific details regarding
various finance creditors.

The above transactions are expected to strengthen TXU Europe's financial
position through approximately #1,310 million of debt reduction and
improvement in key financial ratios going forward. TXU Europe's credit ratings
from Standard & Poor's and Moody's, are expected to be confirmed at BBB+/Baa1
respectively.

TXU will host a teleconference and address analysts' questions about this
transaction at 15.00 hours today on 001 706 634 7057 - conference ID 2450747.
The teleconference will be broadcast live on the TXU web site at www.txu.com
and a replay will be available on the web site approximately two hours after
the end of the teleconference . Conference calls for credit analysts and
bondholders will be announced shortly.

Implications for Holders of Specific Debt Securities

The sale of Eastern Electricity Limited does not directly impact the debt
securities of Eastern Electricity Limited. Eastern Electricity Limited's
outstanding bonds will remain obligations of Eastern Electricity Limited.

However, the approval of the holders of TXU Eastern Funding Limited's secured
7.00 per cent Notes due 2005 will be required to allow the sale of the
distribution business. TXU Europe expects to launch a consent offer to these
holders and will offer a one time fee of 0.5% to holders who grant a proxy to
vote in favour of the proposals.

After the sale, holders of TXU Eastern Funding Company's (TXUEFC) 7.25 per
cent guaranteed Notes due 2030 may have the option in some circumstances to
put the Notes to TXUEFC at par value. TXU Europe wishes to keep the full
amount of these Notes outstanding, and to this end is considering making an
offer to holders of these Notes to amend the terms of the Notes to limit the
period of time and manner in which the par put may be exercised. TXU Europe is
considering the addition of a par put in 2015 to the benefit of holders of
these Notes in exchange for their consent to the proposed amendments. The
launch of such an offer and its specific terms are conditional on market
conditions and the completion of the sale of the distribution business.

The sale of Eastern Electricity Limited does not directly impact other debt
securities of TXU Europe.



Further Information

If you are a holder of any of the bonds discussed in this release and would
like further information, we urge you to contact the following individuals at
TXU Europe and Schroder Salomon Smith Barney as liability management adviser
to the company.

TXU Europe:

Howard Goodbourn, UK, 01473 555060, Fax [phone],

email [e-mail]

Gary Wiffin, UK, 01473 555238, Fax [phone],

email [e-mail]

Schroder Salomon Smith Barney:

Greg Makoff, UK, 0207 986 8969, Fax [phone], email
[e-mail]

Graham Bahan, UK, 0207 986 8969, Fax [phone], email
[e-mail]



 This release and other reports and presentations made by TXU Corp. and TXU
Europe contain forward-looking statements. Although TXU Corp. and TXU Europe
believe that in making any such statement their expectations are based on
reasonable assumptions, any such statement involves uncertainties and is
qualified in its entirety by reference to factors contained in the
Forward-Looking Statements section of Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations in the TXU Corp.
2000 Form 10-K and the TXU Europe 2000 Form 10-K, as well as various
regulatory issues, general industry trends; the ability to satisfy the
conditions to the transactions discussed herein; changes in business strategy
or development plans; changes in, or failure or inability to comply with,
governmental regulations, including, without limitation, environmental
regulations; financial market conditions including unanticipated changes in
interest rates, rates of inflation, or foreign exchange rates; unanticipated
changes in operating expenses and capital expenditures; legal and
administrative proceedings and settlements; inability of the various
counterparties to meet their obligations with respect to financial
instruments; changes in tax laws; among others, that could cause the impact of
the transactions discussed in this presentation or other results of TXU Corp.
and TXU Europe to differ materially from those projected in such
forward-looking statements.