Director/PDMR Shareholding

    NOTIFICATION OF INTEREST OF DIRECTORS AT KELDA GROUP plc                       

Kelda Group plc ("Kelda") has been notified today that Kelda Group Employees'  
Trustees Limited ("the Trustee") the trustee of an employee benefit trust      
established by Kelda in 1996, today, allocated the following number of ordinary
shares to directors of Kelda under a long term incentive plan ("the Plan")     
established by Kelda pursuant to the rules of the Plan. The allocation of      
shares is made pursuant to conditional awards of shares granted to those       
directors on 2 June 2005, 13 June 2006, 7 June 2007 & 27 September 2007.       

Martin Towers                           17,809 Ordinary Shares                 
                                                                               
Kevin Whiteman                          36,700 Ordinary Shares                 

The Trustee is holding the shares as nominee for the directors. These shares   
will be cancelled under a scheme of arrangement which was today sanctioned by  
the Court. Once they have been cancelled the Trustees will, as soon as         
practical, distribute the net proceeds due to the directors after deducting any
amounts on account of income tax and National Insurance contributions.         

All employees of Kelda (including executive directors) are potential           
beneficiaries of the employee benefit trust and as such, are deemed by the     
Companies Act 1985 to be interested in all of the shares held in the Trust.    

For further information contact:-                                              
                                                                               
Stuart McFarlane                                                               
                                                                               
Group Company Secretary                                                        
                                                                               
Tel:- 01274 804109                                                             
                                                                               
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