ScottishPower and Royal Bank of Scotland today announced that they intend to create a multi-million pound joint venture offering a unique range of products and services to their combined customer base of over 10 million in the residential and small business markets.

The new business will use the Internet as its preferred channel to provide a range of financial, utility, and maintenance services - traditionally sold separately - in one convenient package. Customers will also be able to access the new range through more traditional routes such as by telephone.

Backed by the resources of two of the UK's most respected companies, the 50-50 joint venture will offer packages tailored to meet the specific needs of individual households and also of small business customers, who will be able to use the Internet and e-commerce to manage their dealings with suppliers and customers in productive new ways.

ScottishPower and Royal Bank of Scotland are planning the product launches to commence in early summer 2000. Initially, these packages will be offered to ScottishPower customers through a new web service to be backed by Thus, its own Internet and telecommunications company, ScottishPower call centres, and its nation-wide chain of retail stores.

As an integral part of the joint venture, ScottishPower energy and home service packages will be offered to Royal Bank of Scotland customers across the UK.

Sir Ian Robinson, ScottishPower's Chief Executive, said: "This exciting new business builds on the strengths of both partners to give customers a full range of household services, adding both value and convenience. We are delighted to work with the Royal Bank which has an excellent record of customer service and product innovation."

Sir George Mathewson, Group Chief Executive of The Royal Bank of Scotland Group, said: "This joint venture represents a genuinely new and innovative approach which will offer households and small businesses the ability to combine utilities, telecom and internet-access services with banking and insurance. It enables each of us to generate shareholder value, and builds on the unique strengths of ScottishPower's multi-utility network, which now serves one in five British households."

Further information:
ScottishPower
Colin McSeveny,                Group Media Relations Manager       0850-884815
Royal Bank of Scotland
David Appleton,                  Head of Group Media Relations       131-523-4414