Interim Results Announcement for the six months ended 30 September 2006

• Continued improvement from Yorkshire Water
• Good performance from KWS on new and existing contracts
• Aquarion disposal expected to complete early in 2007
• Following completion of Aquarion disposal proposed return of £750m to shareholders
• After the proposed return of £750m to shareholders Yorkshire Water net debt to Regulatory Capital Value ratio will be around 60%, the midpoint of the assumed regulatory range

KEY FIGURES
	2006	2005	Increase
Group turnover from continuing operations	£435.0m	£404.3m	7.6%
Group operating profit from continuing operations	£170.0m	£153.6m	10.7%
Profit from continuing operations before tax	£120.2m	£108.7m	10.6%
Adjusted earnings per share	25.7p	23.0p	11.7%
Interim dividend per share	9.25p	8.75p	5.7%

Commenting on the results, Kelda Chairman John Napier said:

“A good start to the year for trading and operations, with continued focus on costs, efficiency, service and compliance offsetting additional energy costs. A review of the forecast balance sheet, pending receipt of the sale proceeds of Aquarion expected early in 2007, has led to a decision to return £750 million to shareholders at that time by way of a B share scheme and consolidation. This will increase gearing to the mid point of the current regulatory price determination assumption.”

For further information contact-

A copy of this interim results announcement will be available on the Kelda Group website from 8am this morning at www.keldagroup.com.

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