Scrip Dividend Alternative

Subject to shareholder approval at the Annual General Meeting to be held on 1 July 2016, a final dividend of 23.12p for the year ended 31 March 2016 will be paid on 2 September 2016 to shareholders on the register on 8 July 2016.

The Company will be offering a scrip dividend alternative for this final dividend, and intends to do so for future dividends, which will provide shareholders with an opportunity to invest the whole of the cash dividend they receive on their Pennon Group Plc shares to buy further shares in the Company without incurring stamp duty or dealing expenses.

The final date for receipt of Forms of Mandate in respect of the scrip dividend alternative for the final dividend will be 15 August 2016. The offer documents will be posted on 22 July 2016.