Directors' Notification of Dealing in Shares

Pennon Group PLC
4 July 2000

Pennon Group Plc today announced that options over 1,146,599 Ordinary shares
exercisable at 461p per share were granted in accordance with the Company's
Sharesave Scheme.  The options will be exercisable normally between 2003 and
2007.

Included within the above figure, options were granted to the following
Directors:

R J Baty              -  1,260  shares
C I J H Drummond      -  2,101  shares
K L Hill              -  1,260  shares.

In addition, options over 1,335 shares granted to Mr K L Hill under the
Sharesave Scheme in 1998 at an option price of 775p per share have lapsed.