With effect from 1 November, Colin Matthews, currently Director, Technical Operations at British Airways, will join the Lattice Group Board as Group Managing Director of Transco, the regulated utility which is responsible for developing and operating the majority of Britain's gas transportation infrastructure.

Colin Matthews, aged 45, is a chartered engineer and has leading management experience in running a complex, continuous operation to the highest standards of safety and reliability.

On the same date, Nick Woollacott, currently Chief Operating Officer of Transco, will join the Board as Group Managing Director responsible for Lattice Enterprises, the portfolio of competitive services businesses, including those unbundled from Transco. Aged 53, he has wide experience in the energy sector which has involved developing and creating new businesses and operations.

Lattice Group also announced two key appointments to the Transco management team, both to take effect from 1 November.

Rob Verrion, aged 48, currently Transco's Finance Director, will succeed Nick Woollacott as Transco's Chief Operating Officer.

David Rees, aged 42, currently Head of Regulatory Strategy at Transco, will become Transco's Finance Director.

Commenting on the appointments, Sir John Parker, Lattice Group Chairman, said:

"Since the Lattice Group was formed from last October's demerger, we have concentrated on delivering three prime objectives: achieving a satisfactory outcome from Transco's current regulatory review; sustaining Transco's drive for operational and capital efficiency; and establishing a portfolio of growth businesses based on our skills in infrastructure management and technology."

"With Transco's regulatory review approaching conclusion, we have been preparing ourselves to take the Group to the next stage of development. The appointments announced today give us the high calibre leadership needed to deliver Transco's Business Plan for the five years of its next price control, and to realise the non-regulated growth opportunities from our established assets and capabilities. And importantly, they will enable Phil Nolan, currently both our Group Chief Executive and CEO of Transco, to concentrate on realising our ambitions for the Group as a whole."

Notes to Editors

Lattice Group is one of three successor companies of what was formerly British Gas plc. It was formed from a second demerger in October 2000. The Group's principal subsidiary is Transco plc, the company responsible for the development and operation of the majority of Britain's gas infrastructure. The Group specialises in the safe and reliable provision, management and servicing of infrastructure networks.

The Group's third business sector is Telecoms, comprising 186k and the Group's interests in the various joint ventures for providing broadband infrastructure and higher-value services. Lawrie Haynes is already established in the dual role of Group Managing Director, Telecoms, and Chief Executive of 186k.

BIOGRAPHICAL DETAILS:

i. Colin Matthews
Colin Matthews, aged 45, is a chartered engineer with a first class degree in engineering from Churchill College, Cambridge. He holds an MBA (Distinction) from Insead, France, and has wide commercial and operational experience. He began his career working for Lucas Girling in 1977, going on to join Bain and Company in 1985 as a Strategy Consultant. He joined the American company General Electric in 1988 as Manager, Business Development, GE International, based in London. He then became Marketing Manager, GE Medical Systems, in Paris, before being appointed Vice President, GE Canada and General Manager, based in Montreal. He joined his current employers, British Airways, in 1997, initially as Managing Director of BA Engineering, becoming Director, Technical Operations in 1999. He is married with four young children.

ii. Nick Woollacott
After graduating from Bristol University with a special honours degree in physics, Nick Woollacott joined Shell in 1969, going on to work in most of the energy industries. Aged 53, he gained significant international commercial and business development experience with Shell, the UK Atomic Energy Authority, AEA Technology and Southern Electric where he was Chief Executive of the company's power generation business. He joined the then British Gas (later BG Group) in 1994 as Managing Director, Power Generation. In 1996 he became Managing Director, Investment, responsible for commercial and investment strategy for downstream assets worldwide. The following year he was appointed Senior Vice President, Europe and North America. In 1999 Nick Woollacott moved to the company's Transco business as Chief Operating Officer. He is married with a daughter.

iii. Rob Verrion
Rob Verrion, aged 48, has a BSc honours degree in mathematics from Southampton University and is a Fellow of the Institute of Chartered Accountants. He began his career working for Price Waterhouse, in 1974, moving in 1978 to become Group Accountant and then Financial Controller of the largest division of Lovell's Shipping and Transport Group. He joined the then British Gas (later BG Group) in 1982 occupying a number of accountancy posts, before gaining valuable experience as Operations Director, South Eastern Region. He moved to the company's international business as the first Managing Director of MetroGas in Argentina in 1992. Rob Verrion returned to the UK in 1996, joining Transco as a Director in a number of operational roles. He was appointed Finance Director of Transco in 1999. He is married with a son and daughter.

iv. David Rees
David Rees, aged 42, holds a first class honours degree in mathematics from Pembroke College, Oxford. He has 13 years' experience as a corporate finance director with specialist knowledge of utilities and regulation. He began his career in 1982 as a consultant for CAP Group Ltd, going on to work for County NatWest Ltd, as Associate Director, Corporate Finance. He joined European Capital Company in 1993 as Associate Director, Corporate Finance and Chief Operating Officer. The following year he moved to Den Norske Bank AS as Associate Director, Marine Corporate Finance. David Rees broadened his experience further in 1996 by joining the Office of Water Services (Ofwat) as Corporate Finance Adviser and Head of Financial Affairs. In 1999 he became Ofwat's Director of Corporate Finance and Economic Affairs, before moving into industry in October 2000 as Head of Regulatory Strategy, Transco. He is married with two sons.