Summary

• Second half earnings per share* 45% higher than previous year
• Good recovery underway, particularly driven by improved US performance
• Full year profit before tax* £567 million, down £61 million
• Exceptional items of £1.3 billion including goodwill write back of £753 million
• A firm programme for continuing improvement in operational performance
  Disposals completed: clear strategy to become a leading international energy company.

Chief Executive's Statement:

Ian Russell, Chief Executive of ScottishPower, said, "The past year has been difficult for ScottishPower, but results through the second half of the year showed continuing improvement and earnings per share were 45% higher than those in the second half of the previous year. This was due to much improved operational performance in our US and Infrastructure businesses. The total dividend per share** for the year to March 2002 is up 5% to 27.34p and in March 2002 we announced the dividend policy with effect from the year ending March 2004. In addition, we have redefined our company as an international energy business through a series of disposals in line with the strategic aim we set out twelve months ago.

The UK electricity market remains very challenging, but we are making good progress in developing our energy trading expertise and improving our costs to serve in the UK Division. Our cost cutting programmes in Infrastructure continue to drive us closer to our target of meeting the regulator's efficiency frontier. Our focus on PacifiCorp's management priorities has delivered much better third and fourth quarter results. Overall we believe that these actions position the group well for a good recovery, particularly in the US.

Having completed our strategic disposals, ScottishPower's strategy is now to become a leading international energy company. We manage regulated and competitive businesses in the UK and the US to serve electricity and gas customers. We invest only in businesses where we can deploy proven skills and strong local market knowledge.

Our regulated businesses seek to provide a base for steady growth, by consistent investment and by driving our performance with excellent operational and regulatory management. In competitive activities where we have knowledge and skill advantages, we seek to enhance margins through the integration of generation, trading and customer services, underpinned by best in class operations.

We have made a good start to the current year and believe that our management focus and renewed, strong commitment to leading operational performance, will drive the sustained creation of shareholder value. The Board also believes that this focus and commitment will enable it to take advantage of the opportunities to create shareholder value that will, over time, arise from the changing structure of our industry in the UK, the rest of Europe and the US."

* Before goodwill amortisation and exceptional items
** Dividends per ADS will be confirmed in a separate announcement today.

For Further Information:

Dominic Fry, Group Director Corporate Communications: 020 7651 2000
Colin McSeveny, Group Media Relations Manager: 020 7651 2000
Andrew Jamieson, Head of Investor Relations: 020  7651 2000