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SOUTH STAFFORDSHIRE PLC NEWS ARTICLE

12/12/07 - High levels of efficiency from South Staffs Water

South Staffs Water has again been recognised by the industry regulator (Ofwat) for achieving high levels of efficiency. South Staffs Water are one of only five water companies that have achieved the top efficiency (Band 'A') for both operating costs and capital expenditure in 2006/7. This is the fourth consecutive year that the Company has achieved Band A for its operating cost base. South Staffs Water also delivers excellent service to customers. Recently South Staffs Water was ranked in the top five for the eighth consecutive year by Ofwat out of the 22 water companies in the industry for its outstanding customer service.

Note to editors:

1. South Staffordshire Water serves large parts of the Black Country, including Walsall, Sandwell and Dudley, together with areas such as Tamworth, Burton, Uttoxeter, Lichfield, Sutton Coldfield and Cannock. In total, the Company serves a population of 1.2 million. The Company supplies 318 million litres of water every day across a network of pipes that total 6,000 km in length.

2. The Ofwat report: Relative efficiency assessment 2006-07 is available from the Ofwat website: www.ofwat.gov.uk

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