ScottishPower announced today the appointment of Bill Allan (45) as Managing Director of ScottishTelecom. Bill joined the Company in 1998 from Cable and Wireless where he was the Chief Executive, Regional Businesses.

Bill Allan succeeds Rod Matthews, who is leaving the Company after five years, during which time he has played a key role in building the business.

ScottishTelecom has grown rapidly since its launch in 1994. ScottishPower has recently appointed Goldman Sachs to explore the options open to optimise value for ScottishPower shareholders from its investment in ScottishTelecom. The review is at a preliminary stage and an announcement will be made if and when appropriate.

Commenting on the announcement Ian Russell, Deputy Chief Executive and Finance Director, ScottishPower and Chairman of ScottishTelecom said:

"Bill has a strong track record in the telecommunications industry, having held a number of senior management positions within Cable and Wireless, most recently as Chief Executive of the Company's international portfolio of Regional Businesses.

We are very grateful to Rod for the entrepreneurial way in which he has contributed to building ScottishTelecom into the successful business that it is today, and we are delighted he will continue to have a consultancy role with ScottishTelecom.

I am sure that Bill and the strong management team at ScottishTelecom will take the business forward for the benefit of customers and shareholders".

Rod Matthews said of today's announcement:

"It has been a privilege to lead ScottishTelecom to its current position and now to hand over the reins to Bill Allan as planned. He has the appropriate management skills to take the Company through the next phase of its development".

For Further Information:

Sue Clark
Director of Corporate Affairs           0141 636 4561

Colin McSeveny
Group Media Relations Manager      0141 636 4515