Delivering Strategic Aims

• Profit before tax (before exceptionals and goodwill amortisation) up £91 million to £736 million
• Earnings per share up 60% to 67.81p
• Earnings per share (before exceptionals and goodwill amortisation) down 2.6% to 41.40p
• Dividend per share up 10.2% to 24.80p
• Thus flotation raised over £1 billion cash
• PacifiCorp transition plan to deliver value which exceeds pre-merger expectations

Charles Miller Smith, Chairman of ScottishPower, said:
"The financial year ended 31 March 2000 has been a major milestone for ScottishPower. The completion of the PacifiCorp merger provides a significant platform for growth in the US, while the transition plan announced today should deliver substantial value which exceeds our pre-merger expectations. The successful flotation of a minority share in Thus delivered an immediate cash benefit, at the same time ensuring we profit from the continued growth of that business. Our UK businesses have delivered good operational performances and we have continued to win new customers in the competitive energy markets, while retaining 87 per cent of customers in our home markets. In addition, we have announced an Internet-based joint venture with The Royal Bank of Scotland to provide a unique package of financial, utility and maintenance services, we have formed a procurement consortium with utility partners, and have also launched a major Internet trading portal.

The final regulatory determinations for our electricity and water businesses provide us with a major challenge, adversely impacting 2000-01 operating profit by some £127 million. We have taken steps to meet this challenge head-on by restructuring our infrastructure businesses and have identified further cost efficiencies and operational improvements. We believe that these actions, together with the benefits arising from the integration of PacifiCorp and increased sales to customers in the UK, will drive earnings growth post 2000-01.

The consolidation of four months of revenue from our US subsidiary PacifiCorp, together with continued strong control over operating costs, led to profit before tax of £736 million, before exceptional items and goodwill amortisation, an increase of £91 million on the prior year. Profit before tax was £1,159 million including the exceptional gain from the flotation of Thus which was partly offset by exceptional charges. Earnings per share were 67.81p on the same basis, while earnings per share, before exceptional items and goodwill amortisation, were 41.40p, down 2.6 per cent on the equivalent figure last year due to the seasonality of business profit contributions. The recommended final dividend of 6.20p per share brings the total dividend per share for the year to 24.80p, an increase of 10.2 per cent.

ScottishPower is committed to growing its business while delivering value to shareholders. We will continue to make both capital and revenue investments to optimise operational performance, enhance the products and services we provide to customers and create value for shareholders. At the same time it is our stated aim to grow the dividend by 5 per cent in nominal terms for each of the three financial years commencing 2000-01. During the 1990's we established a proven track record for growing businesses and delivering value and we are very confident that the evolution of our strategy for the 2000's will drive the company forward and deliver continued success."

Further Information:
Sir Ian Robinson,               Chief Executive               020 7396 3555
David Nish,                        Finance Director              020 7396 3555
Sue Clark,                Director of Corporate Affairs    020 7396 3555
Colin McSeveny,         Group Media Manager            020 7396 3555
Andrew Grant,                    Brunswick                      020 7404 5959