Sir John Parker, Chairman of National Grid Transco, said: "The creation of National Grid Transco brings together two complementary organisations to create a leading energy delivery company. The merger will not only enable us to secure further improvements in security, reliability and efficiency in the UK, but it also reinforces our skills and resources to create further value via our expansion strategy in the Northeast of the US. Our new Group enjoys a wealth of opportunities which we intend to realise for the benefit of customers, employees and shareholders."

Roger Urwin, Chief Executive of National Grid Transco, said: "Over the past six months we have made enormous headway in integrating our two businesses. This process is proceeding smoothly and is reflected by the fact that the new head office of National Grid Transco is open for business today. Looking forward we are confident that we will create further value, beyond the integration savings we are set to deliver, by implementing best practice across the Group and by using our expanded skills base to enhance our US strategy."

In accordance with the Lattice Scheme of Arrangement, Lattice Shareholders on the register as at 6:00 pm on Friday 18 October 2002 ("Scheme Shareholders") received 0.375 of a New National Grid Transco Share for each Lattice Share then held.

Lattice has applied to the UK Listing Authority for its shares to be delisted from the Official List with immediate effect. Dealings in the New National Grid Transco Shares issued to Scheme Shareholders are expected to commence on the London Stock Exchange under the name of National Grid Transco plc and the symbol "NGT" at 8:00 am today.

The CREST accounts of Scheme Shareholders holding Lattice Shares in uncertificated form are expected to be credited today. Share certificates for the New National Grid Transco Shares will be despatched to Scheme Shareholders holding shares in certificated form no later than 4 November 2002.

Fractional entitlements to a New National Grid Transco Share will not be issued to Lattice Shareholders but will be aggregated and sold in the market and the relevant share of the proceeds returned by cheque to the relevant Lattice Shareholders no later than 4 November 2002.

National Grid Shareholders will continue to hold their existing National Grid Shares, which will now trade on the London Stock Exchange under the name of National Grid Transco plc and the symbol "NGT". Holders of National Grid ADSs will continue to hold those ADSs, which will trade on the New York Stock Exchange under the name of National Grid Transco plc and the symbol "NGG".

The Board of National Grid Transco with effect from today, and their respective functions will be:

Colin Matthews has tendered his resignation from Lattice and will therefore not be joining the Board of National Grid Transco. Stephen Box, William Davis, Robert Faircloth and Richard Reynolds are retiring from the Board of National Grid with effect from today, although William Davis will continue with his other roles within National Grid Transco, including as Chairman of National Grid USA.

Terms used in this announcement shall have the same meaning as in the respective Circulars circulated by National Grid to its shareholders and by Lattice to its shareholders, in both cases dated 14 June 2002.