Treasury Matters

Pennon Group PLC
28 September 2007

28 September 2007


PENNON GROUP PLC

PENNON GROUP - TREASURY MATTERS

Pennon Group Plc is today pleased to announce two new financing initiatives to
further strengthen its efficient Group financing strategy:

1.         South West Water Finance Plc (subsidiary of South West Water Limited)
has issued GBP200m of 1.99 per cent Index Linked Bonds due 2057.  The issue of
these Bonds was arranged by Goldman Sachs International.

GBP100m of the 1.99 per cent Index Linked Bonds due 2057 was issued in July
2007. A further GBP100m tap issuance of the 1.99 per cent Index Linked Bonds was
executed in September 2007 which had an issue price of GBP107.6211 per cent plus
accrued interest. The aggregate real yield of these Bonds was 1.86 per cent.

The issues by South West Water Finance Plc are unconditionally and irrevocably
guaranteed by South West Water Limited.

2.         Pennon Group Plc has issued GBP100m of Bonds due 2022. The Bonds have
a 6 per cent fixed coupon for the first 3 years and a coupon expected to be
significantly below 6 per cent for the remaining 12 years. The issue of these
Bonds was arranged by Deutsche Bank AG.

For further information please contact Tony Hooper, Group Treasurer, Pennon
Group Plc, on [phone] or mobile [phone].

www.pennon-group.co.uk

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