Scrip Dividend Alternative

Subject to obtaining shareholder approval at the 2014 Annual General Meeting (AGM) a final dividend of 20.92p for the year ending 31 March 2014 will be paid on 3 October 2014 to shareholders on the register on 8 August 2014.

Subject to obtaining shareholder approval at the 2014 AGM, the Company is intending to offer a Scrip Dividend Alternative for this and 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.

If approved, the final date for the receipt of Forms of Mandate in respect of the scrip dividend alternative for the final dividend will be 15 September 2014.