1 April to 30 September 1997
Positioned For Growth

• Profit before tax up £73m (44%) to £240m
• Loss after windfall tax of £317m was £134m
• Earnings per share before windfall tax up 3.17p (26%) to 15.56p
• Dividend per share up 0.63p (10%) to 6.80p
• Good operational performance from our Energy and Telecommunications businesses
• Southern Water exceeding expectations

Commenting on the results, Mr Murray Stuart, Chairman of ScottishPower, said :
"In the first six months of the year, we have made good progress in achieving our objectives in key areas of the group. The Energy businesses in Scotland and Manweb have continued to deliver sound operational performances. We have made significant steps in the development of our Telecommunications business. The integration of Southern Water is proceeding well, with the programme of business disposals generating cash ahead of our expectations.

Our preparations for the liberalisation of the domestic electricity market are at an advanced stage. We are established in the domestic gas supply market in Scotland and the South East of England. Looking ahead, we are in a strong position as the UK electricity and gas markets progressively open to competition.

During this period of growth, our customers have continued to benefit from the group's development. Electricity prices to domestic and small business customers have been reduced further in real terms, as the regulatory price controls have tightened. Prices to our water customers are being held below that allowed under the regulatory pricing formula, as agreed with the regulator at the time of the Southern Water acquisition.

Group profit before tax was up 44% to £240 million, mainly due to the inclusion of a full six months results from Southern Water. The loss for the period after windfall tax of £317 million was £134 million. With the larger number of shares in issue following the acquisition of Southern Water, earnings per share before windfall tax increased by 26% to 15.56p. The dividend per share was increased by 10% to 6.80p.

The group has made sound progress overall in the first six months of the year. Looking ahead we believe that we are well positioned to exploit the opportunities that the full deregulation of the gas and electricity markets are expected to deliver."

Further Information :
Ian Robinson,                     Chief Executive                   0171 628 5646
Ian Russell,                        Finance Director                  0171 628 5646
Sue Clark                 Director of Corporate Affairs        0171 628 5646