B Share Scheme Elections

Pennon Group PLC
27 February 2006

PENNON GROUP PLC



RETURN OF CASH AND RESULTS OF B SHARE SCHEME ELECTIONS



Under the return of cash proposal by way of a B Share scheme of 110 pence for
each existing ordinary share shareholders were given the following choices:


-    to receive a single B Share dividend of 110 pence each in respect of some 
     or all of their B Shares;
-    to have some or all of their B Shares redeemed for 110 pence each on 27 
     February 2006; and
-    to hold some or all of their B Shares until redeemed for 110 pence each on 
     6 April 2006.



At the close of the election period, being 6.00 p.m. on 24 February 2006, the
results of the elections were as follows:


-    valid elections to accept the single dividend were received in respect of 
     35,858,521 B Shares (27.5 per cent. of the issued B Shares);
-    valid and deemed elections to have B Shares redeemed on 27 February 2006 
     were received in respect of 89,404,091 B Shares (68.5 per cent. of the 
     issued B Shares); and
-    valid elections to have B Shares redeemed on 6 April 2006 were received in 
     respect of 5,200,871 B Shares (4 per cent. of the issued B Shares).



Payments in respect of the single B Share dividend and the B Shares redeemed
today will be settled through the CREST system or, for certificated holders,
cheques will be despatched on 17 March 2006.



Further details of the return of cash are contained in the circular to
shareholders dated 23 January 2006.



For further information please contact:


Merrill Lynch International
Michael Findlay                       0207 996 1000
Chris Snoxall                         0207 996 1000



Merrill Lynch International is acting as exclusive financial adviser and
corporate broker to Pennon and is acting for no-one else in connection with the
Return of Cash to Shareholders and will not be responsible to anyone other than
Pennon for providing the protections afforded to customers of Merrill Lynch
International nor for providing advice in connection with the Return of Cash to
Shareholders or the contents of this document or any other matter referred to
herein.


27 February 2006

www.pennon-group.co.uk

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