Disposal

Pennon Group PLC
15 December 2000


PENNON GROUP SELLS T J BRENT LIMITED

Pennon Group Plc announced today the disposal of construction services
company, TJ Brent Limited,  for total proceeds of £12.4 million, being cash
consideration of £11 million, repayment of outstanding loans of £0.5million
and the assumption of  debt of £0.9  million. (The sale proceeds include those
relating to the previously announced disposal of  T J Brent Limited's Copa
Division.)  T J Brent (excluding the Copa Division) has been acquired by a
management buy-out team led by its Finance Director, Tim Read and backed by
Northern Venture Managers, GLE Development Capital and Barclays Bank.  

T J Brent,  based in Bodmin, Cornwall, was acquired by the Pennon Group in
1990. The company has net assets of £5.5m (net of the loan and debt referred
to above), reported profit before tax of £1.4m in 1999/00 and, as reported in
the recent Interim Results, £0.1m in the first half of 2000/01. Pennon Group
has previously written off £6.9m goodwill to reserves.  The disposal follows
the Group's review of strategic options to maximise shareholder value
announced in May this year. The buyer was chosen as a result of a formal
auction process.

Colin Drummond, Chief Executive of Pennon Group's non-regulated businesses -
which operate under the Viridor Limited banner - said today, 'The disposal of
T J Brent will reduce the Group's net debt and enable Viridor to focus on the
core areas of waste management and instrumentation.  I would like to thank all
T J Brent employees for their past contributions and wish them every success
in the future'.



For further information please contact Colin Drummond, Chief Executive,
Viridor on 01392 443011 or Hilary Weatherley, Corporate Communications Manager
on 01392 443035. Pennon Group Plc press releases can be viewed on the Internet
at the following address: http://www.south-west-water.co.uk/news/news.htm     
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