Acquisition

Pennon Group PLC
9 April 2002

                                                                  9th April 2002


                 PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS


Pennon Group Plc announces that its subsidiary Viridor Waste Limited has
acquired Richardson Limited, the specialist glass reclamation company, for a
cash consideration of £11.9m.  The acquisition is in line with the Group's
strategy of expanding its waste management activities, particularly in the areas
of treatment and disposal.

Richardson, the UK's leading collector and reprocessor of flat glass, is a
family run business headquartered in St Helens, with a nationwide network of
depot and treatment facilities.  It links with Viridor's existing waste
management activities in the North West and Scotland and complements its
numerous local authority contracts.  The UK's National Waste Strategy affords
considerable opportunities for growth in glass recycling.  The acquisition is
expected to be earnings enhancing in the first full year.

Commenting on the acquisition Colin Drummond, Chief Executive of Viridor Waste,
said, 'This is a natural extension of Viridor's strategy of expanding into
specialist areas of waste treatment which are expected to grow as a result of
the Government's new Waste Strategy.'

For further information please contact:

Colin Drummond, Chief Executive, Viridor Waste Limited on 01823 721435

Jo Finely, Investor Relations Manager on 01392 443401

                      This information is provided by RNS
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