Trading Statement

Pennon Group PLC
30 March 2006

30 March 2006



PENNON GROUP PLC



PRE-CLOSE TRADING UPDATE


Pennon Group Plc today reports on trading for the 12 months to 31 March 2006,
prior to entering its close period, and confirms that trading to date remains in
line with market expectations.


One year into the K4 period (2005-2010), South West Water is firmly on target to
deliver the current regulatory contract.  In February 2006 the company exercised
an option to convert a 35 year £114m finance lease to an RPI index linked basis,
taking advantage of historically low index linked rates and also to reduce
earnings volatility.


Viridor Waste remains confident of delivering continued full year growth in
operating profit before intangibles.  It has now achieved preferred bidder
status for the Somerset waste partnership.


On 15 February 2006 Pennon's shareholders approved the proposal to return £200
million of cash to shareholders, with c.£145 million of this return to be by way
of a B Share scheme and c.£55 million through an on-market share buy back
programme.  The B shares have now been issued and c.£138 million of capital was
returned in March with the balance of the B share return to be paid in April
2006.


In association with the B Share scheme, Pennon undertook a share consolidation
whereby shareholders received ten new ordinary Pennon shares for every eleven
existing ordinary shares.  As a result, the number of ordinary shares in issue
was reduced from approximately 130.5 million to 118.6 million.


Pennon intends to announce its Preliminary Results on Thursday, 1 June 2006.


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





30 March 2006



www.pennon-group.co.uk


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