• UK businesses delivering improved efficiency and customer service
• PacifiCorp Transition Plan exceeding expectations
• Operating profit* up £117 million ($173 million)
• Profit before tax* up £30 million ($44 million)
• Earnings per share* down 20% to 13.09p ($0.7749 per ADS) reflecting UK regulation
• Dividends per share** of 13.02p, up 5% on an annualised basis

ScottishPower Chairman, Charles Miller Smith, said: "These results demonstrate that we continue to deliver improved efficiencies and customer service from our UK businesses together with good progress at PacifiCorp. Our focus remains on realising further value from our assets and customer base through the continued application of our core skills and innovation in utility related areas. We are delivering on our plans and remain confident of meeting our full year targets.

Progress on the integration of the PacifiCorp Transition Plan continues to exceed pre-merger expectations. We are ahead of schedule on our cost savings and manpower reduction targets and are confident the Transition Plan targets will be met. All rate cases filed before the merger have been completed and the overall annual revenue increase totals more than $55 million (£37 million). On 1 November 2000, PacifiCorp filed a rate case as required under restructuring legislation in Oregon and for regulatory approval in four states to capture future excess power costs pending rate filings.

Despite intensified competition and the impact of regulatory reviews, we continue to improve our UK businesses with the focus firmly on delivering further value and developing new products and services through traditional and e-commerce channels. Although electricity competition reduced turnover in our UK customer businesses, this was in part offset by increased revenue from new gas customers.

Thus had a disappointing rate of revenue growth of 3% in the first half year, however second quarter revenue was 5% higher than the first quarter. As the major shareholder we continue to support Thus' strategy and have extended the financing facilities available to it.

Half year group operating profit increased by £117 million (36%) to £445 million, with £58 million of this growth in the second quarter. Group turnover grew significantly to £2,781 million, an increase of £1,250 million (82%), with PacifiCorp contributing revenues of £1,352 million. Earnings per share were 13.09p for the half year, and 6.74p for the quarter (compared to 16.32p in the first half of last year and 8.24p for the quarter) reflecting the impact of the UK regulatory reviews. The financial performance of PacifiCorp has been enhancing to earnings and the group's half year results are in line with our expectations. The second quarter dividend of 6.51p per share takes the half year dividend to 13.02p, consistent with our aim of a 5% annual increase for the next three years.

As part of a planned succession, the board announced on 6 November 2000 that Sir Ian Robinson will retire as Chief Executive with effect from April 2001, being succeeded by Ian Russell, currently Deputy Chief Executive.

In this, our first Interim results to include a full contribution from PacifiCorp, we have achieved much. The delivery of our business plans in both the UK and US is progressing well and, in some cases, ahead of expectations."

Further Information:
Dominic Fry,                  Director of Corporate Affairs             020 7651 2000
Colin McSeveny,        Group Media Relations Manager           020 7651 2000
Andrew Jamieson,         Investor Relations Manager              020 7651 2000

*Before exceptional items and goodwill amortisation. UK sterling amounts are translated at $1.48 to £1.00, the closing exchange rate on 30 September 2000.
**The dividend per ADS will be confirmed in a separate announcement today. 9 November 2000