Trading Statement

Pennon Group PLC
23 September 2004

                                                               23 September 2004


                                PENNON GROUP PLC

                            PRE-CLOSE TRADING UPDATE


Pennon Group Plc today reports on trading for the 6 months to 30 September 2004,
prior to entering its close period, and confirms that trading to date remains in
line with market expectations.

Pennon continues to make good progress in delivering its strategy of
outperforming the current regulatory contract in South West Water.

The Group also remains confident of delivering full year growth in operating
profit before goodwill from Viridor Waste.

Pennon intends to announce its Interim Results on Thursday, 9 December 2004.


For further information, please contact:

Pennon
David Dupont - Group Director of Finance     01392 443998
Jo Finely - Investor Relations Manager       01392 443401

Finsbury
Edward Orlebar                               0207 251 3801






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