ALLENTOWN, Pa.---South Western Electricity plc, known as SWEB, an affiliate of PP&L Global, Inc. and Southern Energy, Inc., today (9/30) announced settlement on the sale of its electricity supply business to London Electricity for 160 million pounds (about $264 million, based on current exchange rates). PP&L Global is a subsidiary of PP&L Resources, Inc. (NYSE: PPL).

PP&L Resources expects to record an after-tax gain from the sale of about $40 million, said John R. Biggar, the company's senior vice president and chief financial officer. Biggar said the gain will be recorded in the fourth quarter of 1999 because of a one-month lag in recording the results from international affiliates.

In the deregulated U.K. electricity market, a supply business purchases wholesale electricity and then sells it to retail customers in the competitive marketplace. The supply business represents only about 15 percent of SWEB's annual earnings. In the future, SWEB will focus on its extensive power distribution network in southwest England. It currently transports and delivers electricity to 1.4 million customers. PP&L Global and Southern Energy will continue joint ownership of the electric delivery business, which will be renamed Western Power Distribution (WPD). "WPD looks forward to serving its many customers for years to come," said Paul Champagne, PP&L Global's president.

The U.K.'s Office of Gas and Electricity Markets (Ofgem) is expected to announce in mid-November final rate reductions for the regional electric companies in the United Kingdom, including WPD. In anticipation of this Ofgem action, PP&L Resources is evaluating the carrying value of its investment in WPD. The amount of any possible write-down cannot be determined until Ofgem issues its final rate reductions for WPD, but such a write-down could be material.

Southern Energy is a unit of Southern Company, which also is the parent company of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric.

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Certain statements which are contained in this news release are "forward-looking statements" within the meaning of the federal securities laws. Although PP&L Resources believes that the expectations reflected in these statements are reasonable, there can be no assurance that these expectations will prove to have been correct. These forward-looking statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the forward-looking statements. Such forward-looking statements should be considered in conjunction with PP&L Resources' documents on file with the Securities and Exchange Commission.