Trading Statement

Pennon Group PLC
18 March 2004


18 March 2004


PENNON GROUP PLC

FOR IMMEDIATE RELEASE

PRE-CLOSE TRADING UPDATE


Pennon Group Plc today reports on trading for the 12 months to 31
March 2004, 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 current regulatory contract in South West Water and, in line
with expectations at the beginning of the year, remains confident of delivering
full year growth in operating profit before goodwill from Viridor Waste.
Viridor's growth is supported by further good performance in its landfill and
power generation businesses.

Pennon intends to announce its Preliminary Results on Thursday, 27 May 2004.


For further information, please contact:

Pennon

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

Finsbury

Edward Orlebar                                         020 7251 3801


18 March 2004

www.pennon-group.co.uk

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