Compulsory acquisition

RNS Number:6770F
South Staffordshire Plc
26 November 2004


                                                                26 November 2004

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

                             Recommended Cash Offer
                                       by
                         Dresdner Kleinwort Wasserstein
                                  on behalf of
                        AquaInvest Acquisitions Limited
                                      for
                            South Staffordshire Plc

              Compulsory acquisition, de-listing and re-registration

The board of AquaInvest Acquisitions Limited ("AquaInvest") announces that by 
3.00 p.m. (U.K. time) on 25 November 2004, AquaInvest has received acceptances 
of the Offer in respect of 95.3 per cent. of the issued and to be issued 
South Staffordshire Shares to which the Offer relates.  As stated in the Offer 
Document, AquaInvest now intends to exercise its rights to acquire compulsorily 
any outstanding South Staffordshire Shares to which the Offer relates on 
the same terms as the Offer by applying the provisions of sections 428 to 430F 
of the Companies Act.

The Offer remains open until further notice. South Staffordshire Shareholders 
will receive the consideration to which they are entitled under the Offer more 
quickly if they accept the Offer by returning their completed Form of Acceptance 
or accept electronically through CREST than if they take no action and await 
the compulsory acquisition of their South Staffordshire Shares under sections 
428 to 430F of the Companies Act.

Accordingly, South Staffordshire Shareholders who have not yet accepted the Offer 
are strongly encouraged to return their completed Form of Acceptance as soon as 
possible.


Cancellation of listing and re-registration

Application has been made to the UK Listing Authority for the listing of the
South Staffordshire Shares on the Official List to be cancelled and to the
London Stock Exchange for trading of the South Staffordshire Shares to be
cancelled. It is expected that the cancellation will take effect on, or shortly
after, 16 December 2004, being 20 business days following the date of the Offer
being declared unconditional.

It is also proposed that, after the compulsory acquisition of outstanding South
Staffordshire Shares, South Staffordshire will be re-registered as a private
company under the relevant provisions of the Companies Act.

Words and expressions defined in the Offer Document shall have the same meaning
when used in this announcement.

Enquiries:

Dresdner Kleinwort Wasserstein Tel: [phone]
(Financial adviser to First Islamic and AquaInvest)
Anand Jagannathan, Managing Director
Christian Littlewood, Director

Financial Dynamics Tel: [phone]
(Financial PR advisers)
Andrew Dowler, Managing Director
Andrew Waterworth, Partner

The directors of AquaInvest accept responsibility for the information contained
in this announcement. To the best of the knowledge and belief of the directors
of AquaInvest (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.

The Offer is constituted solely by the Offer Document and the Form of
Acceptance, which contain the full terms and conditions of the Offer, including
details of how the Offer may be accepted.

The Offer is not being made, directly or indirectly, in or into, or by the use
of the mails of or by any means or instrumentality (including, without
limitation, facsimile transmission, telephone and the internet) of interstate or
foreign commerce of, or of any facility of a national, state or other securities
exchange of, a Restricted Jurisdiction (including the United States, Canada,
Australia and Japan) and the Offer is not capable of acceptance by any such use,
means, instrumentality or facility or from within a Restricted Jurisdiction.

Dresdner Kleinwort Wasserstein Limited, which is authorised and regulated in the
United Kingdom by the FSA, is acting exclusively as financial adviser to First
Islamic and AquaInvest in connection with the Offer and Announcement and no-one
else and will not be responsible to anyone other than First Islamic and
AquaInvest for providing the protections afforded to customers of Dresdner
Kleinwort Wasserstein Limited, or for affording advice in relation to the Offer
or in relation to the contents of this Announcement or any transaction or
arrangement referred to herein.

If you are in any doubt about the action you should take, you are recommended to
seek your own personal financial advice immediately from your stockbroker, bank
manager, solicitor, accountant or other independent financial adviser authorised
under the Financial Services and Markets Act 2000 if you are resident in the
United Kingdom or, if not, from another appropriately authorised independent
financial adviser.

END



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