Director/PDMR Shareholding

Northumbrian Water Group plc

(the "Issuer")

Notification of transactions of directors/PDMRs and connected persons

The Issuer announces that Northumbrian Water Share Scheme Trustees Limited, the trustee of the Issuer's Long Term Incentive Plan (the "Plan"), has today, 14 December 2010, transferred ordinary 10 pence shares to directors and PDMRs of the Issuer at nil cost, pursuant to the rules of the Plan. The transfer of shares is pursuant to a conditional award of shares made on 13 December 2007.

Chris Green, Finance Director, acquired 30,095 shares under the Plan, representing 0.005% of the Issuer's issued share capital. 30,000 shares have been transferred to Mr Green's children and the balance of 95 transferred to Mrs G F Green. Mr Green's beneficial and family interests in the Issuer total 205,806 ordinary 10 pence shares, representing 0.039% of the Issuer's issued share capital.

Ceri Jones, a PDMR, acquired 10,964 shares under the Plan, representing 0.002% of the Issuer's issued share capital. 4,525 shares have been sold and 6,439 transferred to Mrs K Jones, account designation ACJ. Mr Jones' beneficial and family interests in the Issuer total 51,845 shares, representing 0.009% of the Issuer's issued share capital.

Graham Neave, Operations Director, acquired 13,416 shares under the Plan, representing 0.002% of the Issuer's issued share capital. 8,416 shares have been sold and 5,000 transferred to Mrs S Neave. Mr Neave's beneficial and family interests in the Issuer total 27,234 ordinary 10 pence shares, representing 0.005% of the Issuer's issued share capital.

This notification is made in accordance with DTR 3.1.2R.

Name of contact and telephone number for queries:

Kate Alsop

Assistant Company Secretary

Tel: 0191 301 6701