ScottishPower announces that, following the closing of THUS plc's £275 million open offer yesterday, which is expected to become unconditional on 12 March 2002, if the demerger of ScottishPower's interest in THUS proceeds, ScottishPower shareholders will receive 49.97481096 THUS ordinary shares and 1.34942060 THUS participating preference shares for every 100 ScottishPower ordinary shares held at 5.00 p.m. on 15 March 2002. The demerger is itself conditional, inter alia, upon the THUS plc open offer becoming unconditional in all respects and the THUS plc scheme of arrangement becoming effective.

As previously announced, fractional entitlements to THUS ordinary shares will not be distributed but will be sold for the benefit of ScottishPower (in the case of fractional entitlements arising from the special dividend effecting the demerger) and THUS (in the case of fractional entitlements arising from the conversion of THUS participating preference shares into THUS ordinary shares).

If the resolution to approve the conversion of the THUS participating preference shares into ordinary shares is passed, ScottishPower shareholders would receive 2.80346820 THUS ordinary shares for every THUS participating preference share, resulting in ScottishPower shareholders receiving approximately 3.78305773 THUS ordinary shares for every 100 ScottishPower ordinary shares held at 5.00 p.m. on 15 March 2002. On this basis, the total number of THUS ordinary shares received would be approximately 53.75786869 for every 100 ScottishPower ordinary shares held at 5.00 p.m. on 15 March 2002. Exact numbers for each individual shareholder will be determined following the calculation of fractional entitlements.

Shareholders should note that the record time for the demerger is 5.00 p.m. on 15 March 2002 and that the demerger is expected to become effective at 4.30 p.m. on 19 March 2002. THUS has convened an extraordinary general meeting to approve the THUS participating preference share conversion at 5.00 p.m. on 19 March 2002, which is expected to become effective on the following day.

Further Information:

ScottishPower
Colin McSeveny,               Media                 0141 636 4515
Andrew Jamieson,          Investors             0141 636 4527

HSBC Investment Bank plc
Peter Jones                                                  020 7336 9315
John Hannaford                                           020 7336 2006

HSBC Investment Bank plc is acting exclusively for ScottishPower and no one else in connection with the proposals described in this announcement and will not be responsible to anyone other than ScottishPower for providing the protections afforded to its clients or for providing advice in relation to such proposals or the contents of this announcement.