SCOTTISH POWER PLC

PRELIMINARY RESULTS 2004/05 AND SALE OF PACIFICORP

Sale of PacifiCorp

• Sale of PacifiCorp to MidAmerican for $9.4 billion
• Completion expected in 12-18 months
• Equity injection net of dividends of $285 million prior to March 2006
• Impairment charge of £927 million
• Intend to return approximately $4.5 billion of net proceeds to ScottishPower shareholders
• Sale and return of capital expected to be earnings accretive for ScottishPower from completion
• Focus on continued growth and development of Infrastructure Division, UK Division & PPM Energy

Preliminary Results 2004/05

• Profit before tax* up 10% to over £1 billion, for the first time
• Operating profit* for our continuing three businesses up 23%
• Earnings per share* of 40.22 pence for the year, up 10%
• Earnings per share* of 11.64 pence for the fourth quarter, up 10%
• Dividends per share of 22.50 pence, up 10%
• Dividends for each of the first three quarters of 2005/06 of 5.20 pence, up 5%

Note: Items marked * are excluding goodwill amortisation and the exceptional item. ScottishPower management assesses the performance of its businesses by adjusting UK GAAP statutory results to exclude items it considers to be non-operational or non-recurring in nature. In the periods reviewed, goodwill amortisation and the exceptional item have been excluded. We have, therefore, focused our presentation of business performance on the results excluding these items. Unless otherwise stated "year" relates to the year to 31 March 2005, and "quarter" relates to the three months to 31 March 2005.

Ian Russell, ScottishPower Chief Executive, said:

"Along with our financial results, we are today announcing our decision to sell PacifiCorp and focus our management and capital on the Infrastructure Division, UK Division and PPM Energy.

Following our Interim results in November, we conducted a strategic review of PacifiCorp including a review of its prospects, capital requirements and profile of returns. As a result of this review, we are announcing today the sale of PacifiCorp to MidAmerican for $9.4 billion. We intend to return approximately $4.5 billion of the net proceeds to shareholders following the completion of the sale which, subject to regulatory and shareholder approval, is anticipated to take 12 to 18 months. The sale and return of capital is expected to enhance our return on capital and is expected to be earnings accretive from completion.

We are also announcing our results for the year to 31 March 2005. We have achieved profit before tax* of over £1 billion for the first time, an increase of 10% compared with the prior year. These results reflect a 20% growth in our UK customer numbers complemented by investments in generation, continued efficiency in our UK network business, the further returns from our US competitive wind and gas storage investments, and lower interest costs. These contributions more than made up for the lower profit at PacifiCorp.

The Infrastructure Division, UK Division and PPM Energy are strong businesses that have driven our recent profit growth. They are also businesses in which we see significant further opportunities for investment that will deliver enhanced growth and returns well in excess of our cost of capital. Over the last two years operating profit, excluding goodwill amortisation, in these businesses has increased by 38%.

In summary, we have today announced the sale of PacifiCorp to MidAmerican for $9.4 billion with approximately $4.5 billion of the net proceeds to be returned to shareholders. Our full year results show profit before tax*, earnings per share* and dividends per share all up by 10%. We have set the dividend for each of the first three quarters of 2005/06 off the higher than expected base for dividends this year, at 5.20 pence per share, representing an increase of 5% from 2004/05, up from 4.2% for the first three quarters of last year, compared to 2003/04. Looking ahead, we remain committed to delivering our strategy of investing for growth and improving operational performance." ....