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Pennon Group PLC (PNN)

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Friday 25 October, 2002

Pennon Group PLC

Acquisition

Pennon Group PLC
25 October 2002

PENNON GROUP PLC


PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS


Pennon Group Plc announces that its subsidiary, Viridor Waste Limited, has
acquired Parkwood Holdings Limited the landfill, recycling and liquid waste
treatment group, for a cash consideration of £20.6 million.  The acquisition is
in line with the Group's strategy of expanding its waste management activities,
particularly in the areas of treatment and disposal.

Parkwood operates in Sheffield and has consented landfill capacity of 4 million
cubic metres which brings Viridor Waste's total consented capacity to 78 million
cubic metres.  It also has recycling and transfer station operations along with
an associated collection fleet.  In addition, it has a purpose built liquid
waste treatment plant which is expected to benefit as liquid wastes are diverted
from landfill under the recently introduced Landfill Directive.  It links with
Viridor Waste's existing activities at Erin landfill some 20 miles to the South.
The acquisition is expected to be earnings enhancing in the first full year.

Commenting on the acquisition Colin Drummond, Chief Executive of Viridor Waste
said, 'This acquisition fits well with Viridor's strategy of building our
landfill business whilst at the same time expanding into areas of waste
treatment which are expected to grow as a result of the Government's new Waste
Strategy.'





For further information please contact:


Colin Drummond, Chief Executive, Viridor Waste Limited on 01823 721435
Jo Finely, Investor Relations Manager on 01392 443401


25 October 2002


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