Trading Statement

Pennon Group PLC
18 September 2002

18 September 2002

PENNON GROUP PLC

FOR IMMEDIATE RELEASE


PRE-CLOSE TRADING UPDATE

Pennon Group Plc today reports on trading for the six months to 30 September
2002, prior to entering its close period, and confirms that trading to date
remains in line with market expectations.

Pennon continues to make good progress in delivering its strategy of
outperforming the regulatory contract in South West Water and of growing 
Viridor Waste.

Two acquisitions were made during the period.  In April, Viridor Waste acquired
Richardson Limited, a specialist glass reclamation company for £11.9 million. 
The acquisition was a natural extension of Viridor's strategy of expanding into
specialist areas of waste treatment which are expected to grow as a result of
the Government's new Waste Strategy.  In July, Roseland Plant Limited, a Cornish
waste management and plant hire company, was acquired for £9.5 million, which
further increased Viridor Waste's consented landfill capacity in the South West.

On 1 October 2002, a Special Interim dividend of 70p per share will be paid to
shareholders.  This will be funded out of the proceeds of the disposal last
February of Viridor Instrumentation.  A share consolidation  took place on 2
September in order to maintain comparability of the share price before and after
the payment of the dividend.

Pennon will be announcing its interim results on Thursday, 28 November 2002.


For further information, please contact:

Pennon
David Dupont - Group Director of Finance             01392 443381
Jo Finely - Investor Relations Manager               01392 443401

Financial Dynamics
Andrew Dowler                                        020 7831 3113



18 September 2002
Transmission ends


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