SOURCE: Scottish Power PLC

July 27, 2005 02:01 ET

SCOTTISH POWER PLC ANNOUNCES SCOTTISHPOWER SELLS UK GAS STORAGE PROJECT FOR GBP96 M

GLASGOW, UK -- (MARKET WIRE) -- July 27, 2005 --


              SCOTTISHPOWER SELLS UK GAS STORAGE PROJECT FOR GBP96 M

ScottishPower is pleased to announce the sale of its underground natural gas
storage project at Byley to E.ON UK plc in a GBP96 million transaction that also
includes ScottishPower securing a 15-year storage contract for a substantial
portion of the planned capacity.

The project, which gained final planning approval last year, will see around six
billion cubic feet of gas stored in up to eight underground caverns in Cheshire.
Byley is designed as a highly flexible storage facility with capacity that will
exceed ScottishPower's own requirements.

Securing a long-term storage contract combined with the sale presents an
attractive opportunity to immediately maximise value from the development and
also to secure access to reliable, high deliverability gas storage. This is
essential to managing ScottishPower's gas portfolio and meeting our customers'
requirements, particularly as the UK becomes a net importer of gas.

Charles Berry, ScottishPower Executive Director UK, said: "Having guided the
project through its complex planning phase, we are delighted to have gained an
excellent price for the asset and secured our long-term gas storage requirements
in the UK. The sale option maximises shareholder value."

Further information:



Colin McSeveny       Group Media Relations Manager       0141-636-4515

Jennifer Lawton      Head of Investor Relations          0141-636-4527




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