Pennon Group Plc

* Denotes value of enhanced scrip dividend.

** On 30 May 2002, Pennon announced that following the sale of Viridor Instrumentation, the net sale proceeds were to be returned to shareholders, by way of a Special Interim Dividend of 70 pence per existing Ordinary share. The Special Interim Dividend was equivalent to just over 10% of the market capitalisation of the Company, at the close of business on 29 May 2002, the last trading day prior to the announcement of the Special Interim Dividend. A Share Capital Consolidation occurred on 2 September 2002, to reduce the number of Ordinary shares in issue by approximately the same percentage, to allow comparability of the Company's share price before and after the payment of the Special Interim Dividend. The Consolidation replaced every 111 then existing Ordinary shares with 100 new Ordinary shares. Fractional entitlements were aggregated and sold in the market on behalf of the relevant Shareholders and the net proceeds sent to them. The value of any Shareholder's fractional entitlement did not exceed the value of one new Ordinary share.

*** At an Extraordinary General Meeting held on 15 February 2006, shareholders approved the return of cash, by way of a B Share Scheme, of 110p for each existing issued Ordinary share held at the close of business on 17 February 2006 and the consolidation of the existing Ordinary shares on the basis of 10 new Ordinary shares for every 11 existing Ordinary shares. Shareholder approval was also obtained to carry out an on-market share buy back programme of approximately £55 million of the new Ordinary shares. B Shares with a total value of £143.5 million were created from the existing share premium reserve. A corresponding capital redemption reserve was created upon payment to shareholders or cancellation of deferred shares. Following the share capital consolidation the weighted average number of shares in issue during the year was 127.3 million (2004/05 126.0 million). The value of net assets per share at book value at 31 March 2006 was 490p. A 3 for 1 stock split of Pennon’s share capital was effected in July 2006 in order to increase the liquidity and marketability of its shares.

⁺ The two dividends paid on 1 October 2002 were paid together under payment number 25.