• Turnover up 3.6% to £3,242 million
• Profit before tax up £4 million to £644 million
• EBITDA up £66 million to £1,017 million
• Earnings per share up 2.8% to 42.4p
• Dividend per share up 10.3% to 22.5p
• Over one million new energy accounts acquired
• ScottishTelecom doubles turnover
• Construction commences on 400 MW CCGT
• PacifiCorp merger on track

Murray Stuart, Chairman of ScottishPower, said:

"These results demonstrate a satisfactory financial performance from the group and reflect our commitment to investing to grow the business to deliver a high quality service for customers and enhanced value for shareholders.

Our investment in the competitive electricity and gas markets has positioned ScottishPower as a market leader, with new domestic energy accounts secured to date in the competitive market totalling over one million. ScottishTelecom has continued to grow, doubling turnover, and extending both its markets and product range. We are currently considering with financial advisers how best to maximise shareholder value from this business. We have achieved further improvements in cost efficiency and customer service, particularly in our Power Systems and Southern Water businesses. Final approvals have been achieved and construction has commenced on our 400 MW CCGT near Brighton, a 50% joint venture project.

Through our proposed merger with US utility PacifiCorp, we aim to establish a strong platform for growth in the US electricity sector. The merger approval process is proceeding in line with our expectations and we continue to envisage completing the transaction later this year. We believe that the transaction will derive benefit from the application of ScottishPower's proven utility management skills to PacifiCorp's western US business."

For Further Information:

Ian Robinson
Chief Executive                                                0171 628 5646

Ian Russell
Deputy Chief Executive & Finance Director     0171 628 5646

Sue Clark
Director of Corporate Affairs                           0171 628 5646

Andrew Grant
Brunswick                                                        0171 404 5959