Trading Statement

Pennon Group PLC
27 September 2006


27 September 2006

PENNON GROUP PLC

PRE-CLOSE TRADING UPDATE

Pennon Group Plc today reports on trading for the 6 months to 30 September 2006,
prior to entering its close period, and confirms that trading to date remains in
line with management expectations.

Now in the second year of the K4 period (2005 - 2010), South West Water remains
on target to meet the current regulatory contract. Viridor Waste remains
confident of delivering continued growth in operating profit before amortisation
of intangibles.

At the Annual General Meeting on 27 July 2006 shareholders approved the
subdivision of the Company's ordinary shares by way of a three for one share
split. The new ordinary shares began trading on 31 July 2006. As a result, the
number of ordinary shares in issue was increased from 118.36 million to 355.08
million.

A background briefing on Pennon for fund managers and analysts unfamiliar with
the Group will be held on Tuesday October 10. Presentations will be made by
Pennon's three executive directors and will commence at 5pm at Credit Suisse's
offices at the International Finance Centre, 25 Old Broad Street, EC2. Please
contact Juliet Burland on 020 7888 6218 for further information.

Pennon intends to announce its Interim Results on Thursday, 30 November 2006.

For further information, please contact:

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

Finsbury
Mark Harris                                  0207 251 3801
Sally Hogan










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