Directors Shareholding

Pennon Group PLC
15 September 2000

DIRECTORS' SHAREHOLDING

Pennon Group Plc announces that it has today received notification that its
three Executive Directors have obtained a conditional interest in Ordinary
shares of the Company as follows:

Mr R J Baty                  -     17,954
Mr C I J H Drummond          -     17,954
Mr K L Hill                  -     18,612

The shares were acquired on 12 September 2000 by Peninsula Trustees (Guernsey)
Limited at 598.4p per share and represent the maximum number of shares to
which each of the Directors would become entitled under the Company's
Restricted Share Plan if the relevant performance criteria are met.