Holding in Company

Pennon Group PLC
30 July 2001




HOLDING IN COMPANY



Pennon Group Plc has today received notification (by a letter dated 27 July
2001) that Morley Fund Management Limited (a subsidiary of CGNU plc) has
decreased its interest and now holds 6,783,227 Ordinary shares of £1 each in
Pennon Group Plc, representing 4.95% of the issued share capital of the
Company.





30 July 2001

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