Pennon Regulatory News (PNN)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION OUTSIDE OF THE UNITED KINGDOM, INCLUDING BUT NOT LIMITED TO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SWITZERLAND, NEW ZEALAND AND THE REPUBLIC OF SOUTH AFRICA.

18 September 2020

Pennon Group Plc

Publication of Prospectus - WaterShare+ Scheme

Pennon Group Plc ("Pennon") is pleased to announce that South West Water ("SWW") has launched its unique customer scheme, WaterShare+ (the "WaterShare+ Scheme").

The WaterShare+ Scheme has been developed in direct response to feedback from SWW's customers and will see £20 million being given to customers. The WaterShare+ Scheme was approved by shareholders at Pennon's AGM on 31 July 2020.

Through the WaterShare+ Scheme customers will be able to benefit to the value of £20. Certain customers may be able to have the option choosing a minimum of £20 in Pennon shares.

A Prospectus has been produced in connection with the WaterShare+ Scheme Offer which has now been approved by the Financial Conduct Authority (the "FCA"). The Prospectus sets out the details of the WaterShare+ Scheme Offer and will shortly be available on Pennon's website at www.pennon-group.co.uk/investor-information/watershare.

Further details, including information required to apply for the WaterShare+ Scheme Offer, will be posted to Eligible Customers (as defined in the Prospectus) from the 21 September 2020.

A copy of the Prospectus has also been submitted to the National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

Important Legal Information

This announcement is an advertisement and not a prospectus for the purposes of the Prospectus Rules of the FCA and is not an offer to sell, or a solicitation of an offer to subscribe for or to acquire, securities in or into the United States or in any other jurisdiction, including in or into any Restricted Jurisdiction (as defined in the Prospectus). Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. No persons should accept the offer for the Existing Ordinary Shares referred to in this announcement except solely on the basis of the information contained in a prospectus in its final form (together with any supplementary prospectus, if relevant, the "Prospectus") published by Pennon in connection with the proposed offer of Existing Ordinary Shares in Pennon as part of the WaterShare+ Scheme, including the risk factors set out in the Prospectus.

The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

Neither this announcement nor the information contained herein is for publication, distribution or release, in whole or in part, directly or indirectly, in or into or from the United States (including its territories and possessions, any State of the United States and the District of Columbia), any Restricted Jurisdiction or to any persons in any of those jurisdictions or any other jurisdictions where to do so would be unlawful or would require registration or other measures.

The Existing Ordinary Shares referred to herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act") or any relevant securities laws of any state or other jurisdiction of the United States and may not be offered, sold, taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, within the United States.

The Existing Ordinary Shares have not been and will not be registered under the applicable securities laws of any of the Restricted Jurisdictions and, and may not be offered or sold within any Restricted Jurisdiction or to any national, resident or citizen of any Restricted Jurisdiction. Neither this announcement nor any copy of it may be taken or transmitted, directly or indirectly, into the United States (including its territories and possessions), any Restricted Jurisdiction, or to any persons in any of those jurisdictions or any other jurisdictions where to do so would constitute a violation of the relevant securities laws or regulations of such jurisdiction. Any failure to comply with the foregoing restrictions may constitute a violation of the securities laws of the United States, or any Restricted Jurisdiction. The WaterShare+ Scheme Offer and the publication or distribution of this announcement and other information in connection with the WaterShare+ Scheme Offer in other jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not constitute an offer or invitation to participate in the WaterShare+ Scheme Offer in any jurisdiction, nor does it purport to give legal, tax or financial advice. Nothing contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity. The information, statements and opinions contained in this announcement do not constitute a public offer under any applicable legislation or an offer to sell, or a solicitation of an offer to buy, any shares in and are not for release, publication or distribution (directly or indirectly) in or into the United States, any Restricted Jurisdiction or any other jurisdiction where such distribution or offer is unlawful.

This announcement does not constitute a recommendation concerning the WaterShare+ Scheme Offer. The price and value of the shares can decrease as well as increase. Potential investors should consult a professional advisor as to the suitability of the WaterShare+ Scheme Offer for the person concerned. You should not base your financial decision on this announcement.

The WaterShare+ Scheme Offer timetable may be subject to change. Pennon may decide not to go ahead with the WaterShare+ Scheme Offer. You should not base your financial decisions on Pennon's intentions in relation to the WaterShare+ Scheme Offer at this stage. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing all of the amount invested.

Pennon is not under an obligation to update, revise or keep current the information contained in this announcement and the information in this announcement is subject to change without notice.

Pennon, its affiliated undertakings, nor any of their respective parent or subsidiary undertakings, or the subsidiary undertakings of any such parent undertakings, or any of such persons' respective partners, directors, officers, employees, agents, affiliates, advisers or agents accepts any responsibility, obligation or liability whatsoever for, or makes any representation or warranty, express or implied, as to, and no reliance should be placed on, the fairness, truth, fullness, accuracy, completeness or correctness of, the information in this announcement or whether any information has been omitted from the announcement or as to any other information relating to Pennon or its affiliates, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement, its contents or otherwise arising in connection therewith.