Holding in Company

Pennon Group PLC
27 July 2001

HOLDING IN COMPANY

Pennon Group Plc has received notification (by a letter dated 24 July 2001)
that Morley Fund Management Limited (a subsidiary of CGNU plc) has decreased
its interest and now holds 8,047,403 Ordinary shares of £1 each in Pennon
Group Plc, representing 5.8% of the issued share capital of the Company.

27 July 2001

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