Directors' Dealings

PENNON GROUP PLC
23 September 1999


DIRECTORS INTERESTS IN SHARES
-----------------------------

Pennon Group Plc announces that its three Executive Directors have obtained a
conditional interest in Ordinary shares of the Company as follows:

Mr R J Baty                   10,314
Mr C I J H Drummond           10,314
Mr K L Hill                   10,683

The shares were acquired on 16 September 1999 by Peninsula Trustees (Guernsey)
Limited at 1018p per share and represent the maximum number of shares to which
each of the Directors would become entitled under the Company's Restricted Share
Plan if the relevant performance criteria are met.