TAKE NOTICE that due to the threat of a serious water shortage in the Kent Medway, Kent Thanet and Sussex Hastings water supply areas, caused by an exceptional shortage of rainfall, Southern Water Services Limited (“Southern Water”) of Southern House, Yeoman Road, Worthing, West Sussex, BN13 3NX, has been granted a drought permit by the Environment Agency under Section 79A of the Water Resources Act 1991.

Southern Water is licensed to abstract water from the River Teise at Smallbridge, the River Medway at Yalding and Springfield, and at Bewl Water Reservoir, under Licence 02/114 dated 2 April 1992 (“the Licence”). Under the terms of the Licence, Southern Water is allowed to abstract a maximum quantity of 250 Mega litres per day (Ml/d) at Yalding and 136 Ml/d at Springfield subject to a Minimum Residual Flow (“MRF”) of 275 Ml/d as measured at Teston weir.

The drought permit amends the Licence to reduce the MRF from 275 Ml/d to 100 Ml/d until 31 March 2012. As Southern Water has facilities to pump water abstracted at Yalding to Bewl Water Reservoir, the drought permit, will assist in the refill of Bewl Water Reservoir, which is currently depleted, over the winter period. The refill of Bewl Water Reservoir is necessary to secure the supplies of water made available to the public.

Anyone may inspect a copy of the drought permit, free of charge, at the offices of: Southern Water at Southern House, Capstone Road, Chatham, Kent, ME5 7QA; or at Southern House Yeoman Road, Worthing, West Sussex, BN13 3NX; or at the Environment Agency at Orchard House, Endeavour Park, London Road, Addington, West Malling, Kent, ME19 5SH, between the hours of 10:00 am and 4:00 pm, Monday to Friday; or at The Sailing Club at Bewl Water Reservoir, near Lamberhurst, Tunbridge Wells, Kent, TN3 8JH, between the hours 9:00 am to 3:00 pm Monday to Friday or 9:00 am to 4:45 pm Saturday and Sunday; or Maidstone Library, St Faith’s Street, Maidstone, ME14 1LH between the hours of 9:00 am to 6:00 pm Monday to Friday and between the hours of 9:00 am to 5:00 pm on Saturday, until March 31, 2012.

Dated 28th February, 2012

K Hall, Company Secretary, Southern Water Services Ltd.