Centrica announces 3 for 8 Rights Issue to raise approximately £2.2 billion to fund the potential acquisition of a 25% interest in British Energy.

Centrica plc ("Centrica") today announces a fully underwritten rights issue of 1,392,545,298 New Shares at a price of 160 pence per New Share on the basis of 3 New Shares for every 8 Existing Shares held on the record date of 14 November 2008 (the "Rights Issue").

This Rights Issue is intended to help fund Centrica's vertical integration strategy, either through the potential acquisition of a 25% interest in British Energy plc ("British Energy") or other vertical integration opportunities.

The total net proceeds of the Rights Issue, after estimated aggregate costs and expenses, are expected to be approximately £2.2 billion.

The Issue Price of 160 pence per New Share represents a 39.9% discount to the theoretical ex-rights price of 266 pence, based on the closing price of 306.25 pence per Ordinary Share on 30 October 2008 (being the last business day before today's announcement of the terms of the Rights Issue).

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