Pennon Regulatory News (PNN)

PENNON GROUP PLC

20 March 2015

Directorate Changes

Pennon Group announces that Ken Harvey, who has served as Chairman since March 1997, has decided to retire from the Board on 31 July 2015 following the Company's 2015 AGM. He will be succeeded by Sir John Parker who, with effect from 1 April 2015, will initially join the Board as an independent Non-executive Director and as Deputy Chairman.

Sir John is currently the chairman of Anglo American Plc, deputy chairman of DP World and a non-executive director of the Airbus Group and Carnival Corporation & Plc. He has recently stepped down after three years as the President of the Royal Academy of Engineering. He has chaired five FTSE 100 companies and has served as CEO, chairman or non-executive director in more than twenty major UK and overseas companies.

Pennon Group's Senior Independent Director, Gerard Connell, commented:

"The Company is very fortunate in being able to appoint a successor to Ken who is widely recognised as being one of the most experienced and respected business leaders in the UK. His previous background in the utilities and waste sectors will be particularly valuable to Pennon and its subsidiary companies.

"On behalf of the Board I would like to thank Ken for steering Pennon through a period of significant growth and change over his 18 years as Chairman. He has provided exceptionally strong leadership and wise counsel to the Board and has overseen significant successful developments in both South West Water and Viridor."

Ken Harvey commented:-

"It is appropriate for me to retire at this time when both of Pennon's subsidiary businesses are well positioned for strong future growth.

"I am delighted that Sir John has agreed to take over from me and I wish him and the Board every success in the future strategic development of the Company."

Sir John said:-

"I am honoured to be invited to Chair the Pennon Group and succeed Ken Harvey who has made such a long term outstanding contribution to the development of the Group.

"Having recently completed my term as President of The Royal Academy of Engineering I am pleased to be in a position to devote time and energy to one of the South West leading Companies."

In respect of UKLA Listing Rule 9.6.13 relating to further information concerning the appointment of a new director, Sir John Parker is currently chairman of Anglo American Plc, deputy chairman and senior independent non-executive director of DP World Limited, a non-executive director of Carnival Corporation & Plc and a non-executive director of Airbus Group. Within the last five years he was also chairman of National Grid Plc. This appointment ceased in 2011. There are no other details to disclose concerning Sir John Parker.

For further information please contact:

Ken Harvey, Chairman of Pennon Group, on 01392 443004

Finsbury, on 0207 251 3801

Further information on Pennon Group can be found on the Company's website www.pennon-group.co.uk