Acquisition

Pennon Group PLC
15 July 2002

PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS



Pennon Group announces that its subsidiary Viridor Waste Management Limited has
acquired Roseland Plant Limited, a Cornish waste management and plant hire
company, for a debt free price of £9.5m.  The acquisition is in line with the
Group's strategy of expanding its waste management activities, particularly in
the areas of treatment and disposal.

The acquisition includes Lean Quarry for which planning permission for a
landfill site has been granted.  This will provide Viridor Waste with a further
three million cubic metres of landfill capacity bringing its total consented
capacity to around 75 million cubic metres.

Commenting on the acquisition Colin Drummond, Chief Executive of Viridor Waste,
said 'This acquisition increases Viridor Waste's presence in Cornwall where
there is a shortage of consented landfill capacity and will allow us to develop
our business in our home territory'.


For further information please contact:


Colin Drummond, Chief Executive Viridor Waste Limited on 01823 721435
Hilary Weatherley, Corporate Communications Manager, Pennon Group Plc on 01392 443035.



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