Director/PDMR Shareholding

Pennon Group PLC
03 August 2006

PENNON GROUP PLC

FOR IMMEDIATE RELEASE

DIRECTORS' SHAREHOLDINGS

NOTIFICATION OF DIRECTORS' INTERESTS PURSUANT TO SECTION 324(2) OF THE
COMPANIES ACT 1985

The following changes in the interests in shareholdings of Directors of Pennon
Group Plc ('the Company') arose in London, England from the Company's
subdivision of each of its 1221/10p Ordinary shares into three new Ordinary
shares of 40.7p each as approved by shareholders at the Company's Annual General
Meeting on 27 July 2006, and as described in the Notice of Annual General
Meeting to shareholders dated 22 June 2006.   The share split was completed on
31 July 2006 when the new Ordinary shares of 40.7p each were admitted to trading
on that day on the London Stock Exchange.  Notification was received by the
Company of these interests on 3 August 2006.

(a)   Shareholdings - interests of each Director:

                                  Prior to Subdivision   After Subdivision
                                  Ordinary shares of   New Ordinary shares
                                       122 1/10p each      of  40.7p each
      Executive Directors

      Mr R J Baty                      58,635                 175,905
      Mr C I J H Drummond              39,863                 119,589
      Mr D J Dupont                    33,191                  99,573

      Non-Executive Directors

      Mr K G Harvey                     2,403                   7,209
      Ms K M H Mortimer                   250                     750
                                          

(b)   Restricted Share Plan - conditional interests in shares of each Executive 
      Director.
                                  Prior to Subdivision   After Subdivision
                                   Ordinary shares of  New Ordinary shares
                                      122 1/10p each      of  40.7p each

      Mr R J Baty                      47,070                 141,210
      Mr C I J H Drummond              47,070                 141,210
      Mr D J Dupont                    45,385                 136,155

      The above new Ordinary shares are held by Peninsula Trustees (Guernsey) 
      Limited and represent the maximum number of shares to which each Executive 
      Director would become entitled under the Company's Restricted Share Plan 
      if the relevant criterion in respect of each award was met.

(c)   Performance Related Bonus Plan - conditional interest in shares of each 
      Executive Director:
                                  Prior to Subdivision   After Subdivision
                                   Ordinary shares of  New Ordinary shares
                                      122 1/10p each      of  40.7p each

      Mr R J Baty                      16,956                  50,868
      Mr C I J H Drummond              18,680                  56.040
      Mr D J Dupont                    16,870                  50,610
                                       
      The above new Ordinary shares are held by Peninsula Trustees (Guernsey) 
      Limited and it is a condition of the Performance Related Bonus Plan that 
      these Ordinary shares so awarded to each of the Executive Directors should 
      normally be held for a period of three years, conditional upon continuous 
      service with the Company.

(d)   Sharesave Scheme

      The number of options over the Company's Ordinary shares previously 
      granted to Executive Directors in accordance with the Company's Sharesave 
      Scheme have been adjusted by multiplying the numbers of shares under 
      option by three, and the  new option prices have been obtained by dividing 
      the existing option prices by three, rounded down to two decimal places of 
      a penny.

                              Prior to            After             Prior to     After
                              Subdivision         Subdivision       Subdivision  Subdivision
                              Options over        Options over New  Option       Option
                              Ordinary shares of  Ordinary shares   Price        Price
                              122 1/10p each      of 40.7p each    

      Mr R J Baty              1,047              3,141             530p         176.66p
      Mr C I J H Drummond      1,745              5,235             530p         176.66p
      Mr D J Dupont            2,924              8,772             566p         188.66p


3 August 2006

www.pennon-group.co.uk

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