Severn Trent Services Awarded Two Five-Year Contracts
by Florida Governmental Utility Authority

Fort Washington, Pa. - Oct. 13, 2003 -Severn Trent Services announced that it has been awarded two (2) five-year contracts (including options) to operate newly acquired utility systems in Citrus County and Lee County, Florida.  Awarded by the Florida Governmental Utility Authority (FGUA), a governmental agency that owns and operates water and wastewater utilities in five (5) Florida counties, the contracts are scheduled to begin on December 5, 2003 upon closure of the acquisitions by the FGUA.  The approximate value of the contracts is $4 million per year.

According to contract terms, Severn Trent will operate and maintain each county's water supply, wastewater collection, treatment and disposal systems; provide treatment and distribution services; and offer full customer service from meter reading through utility billing.

The Citrus County system includes eleven (11) water and five (5) wastewater treatment systems serving approximately 8,000 water and 4,000 wastewater customers.  The Lehigh Acres system in Lee County serves 9,000 water and 7,300 wastewater customers.   Facilities include a 3.0 MGD lime softening water treatment plant and a 2.5 MGD activated sludge wastewater treatment plant.

The FGUA selected Severn Trent Services based on the company's "ability to respond in an extremely short timeframe and its history of customer service with competitive pricing," according to Edward Goscicki, President, Severn Trent-Avatar Utility Services, LLC (ST-AUS).  Contracts were negotiated in ten (10) days to meet the FGUA's compressed timeframe for closure on the acquisitions.