Trading Statement

Pennon Group PLC
26 September 2005

26 September 2005


PENNON GROUP PLC

PRE-CLOSE TRADING UPDATE


Pennon Group Plc today reports on trading for the 6 months to 30 September 2005,
prior to entering its close period, and confirms that trading to date remains in
line with market expectations.


Having outperformed the K3 regulatory contract, South West Water is making good
progress towards the delivery of the K4 regulatory contract.  Viridor Waste
remains confident of delivering continued full year growth in operating profit
before intangibles.


The loss of capital related allowances from April 2005 will have a significant
effect on the corporation tax rate for the current financial year.  It is
expected to be in the range of 13% - 15%.


During August the Company made a pension contribution prepayment for the period
to 2010 of £44m.


Pennon intends to announce its Interim Results on Thursday, 8 December 2005.


For further information, please contact:


Pennon


David Dupont - Group Director of Finance       01392 443998

Jo Finely - Investor Relations Manager             01392 443401


Finsbury


Mark Harris                                         0207 251 3801


Sally Hogan                                          0207 251 3801


www.pennon-group.co.uk


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