Acquisition

Pennon Group PLC
05 December 2007

5 December 2007




Pennon Group Expands its Waste Management Business


Pennon Group Plc announces that its subsidiary, Viridor Waste Management
Limited, has acquired Grosvenor Waste Management Ltd ('Grosvenor'), a leading UK
materials recycling company for a cash consideration of £79.5m (plus debt of
£1.5m).  The acquisition is in line with the Group's strategy of expanding its
waste management activities.


Grosvenor is headquartered in Crayford, Kent.  It comprises a Materials
Recycling Facility (MRF) at Crayford which is the largest in the UK and one of
the most technologically advanced; a MRF operated on behalf of Peterborough City
Council; associated industrial and commercial collection activities; and an
extensive recyclate sales network both in the UK and overseas.  It handles
approximately 500,000 tonnes of material per annum.


Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said,
'The UK's waste strategy demands ever increasing levels of recycling.  Grosvenor
has an excellent track record in leading the way in the recycling market and is
well placed to capitalise on this opportunity.  The acquisition has an excellent
geographic and business fit with Viridor's existing operations and is expected
to be earnings enhancing before amortisation of intangibles in its first full
year.'



For further information please contact:


Colin Drummond, Chief Executive, Viridor Limited on 01823 721435 or 07831 145157

Jo Finely, Investor Relations Manager, Pennon Group on 07785 904763



5 December 2007


www.viridor-waste.co.uk


www.pennon-group.co.uk


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