Investor Info 2000

November 15, 2000

Dear Shareholder:

I am pleased to report that for the nine months ended September 30, 2000, our consolidated net income was $2.2 million compared to $2.1 million for the same period last year. On a per share basis, earnings increased to $1.25 from $1.21 last year. For the current quarter, earnings were $1.15 million, or $0.65 per share, compared to $870,000, or $0.50 per share, in 1999.

For the first nine months of 2000, consolidated revenues increased to $14.5 million, or $800,000 over last year. Although our total revenues increased by 5.8%, there was a significant change in revenues among the Company's primary business segments from 1999 to 2000. Revenues from our water utility operations for the nine months ended September 30, 2000 decreased to $12.15 million, or $487,000, from the same period in 1999 while revenues from the Company's real estate and other activities increased to $2.38 million, or $1.29 million. The decrease in water utility revenues resulted from a 6% drop in consumption reflecting the damper and cooler than normal weather conditions experienced in June and July 2000 compared to the drier and hotter than normal weather for the same months in 1999. The reasons for the increase in real estate revenue and other activities were (i) the continued excellent sales performance of our residential real estate partnerships; (ii) the sale of a parcel of land by our Westwood Park LLC partnership and (iii) increased revenues from our contract operations.

I am also pleased to report that our Westwood Park LLC partnership has signed a purchase and sales agreement with Corning Lasertron for sale of a 55.5 acre parcel in Westwood Park. We expect that the closing will occur later this month.

On October 6, 2000, your Board of Directors declared a quarterly dividend of $.25 per share, which is a $.01 increase from the previous quarter. Your dividend check is enclosed with this report unless you participate in the dividend reinvestment plan, in which case, you will receive a statement of your account from our transfer agent within the next few days.

As always, I thank you for your support.

Sincerely,

Maurice L. Arel

President and Chief Executive Officer

Condensed Consolidated Statements of Income

Pennichuck Corporation and Subsidiaries

(In thousands, except per share amounts)

Three Months Ended Nine Months Ended

September 30 September 30

2000 1999 2000 1999

Revenues:

Water utility operations $4,573 $4,794 $12,154 $12,641

Real estate operations and other 1,372 337 2,379 1,092

5,945 5,131 14,533 13,733

Expenses:

Water utility operations 3,035 3,067 8,607 8,451

Real estate operations and other 394 167 830 486

3,429 3,234 9,437 8,937

Operating Income 2,516 1,897 5,096 4,796

Other income 44 41 134 130

Interest expense (496) (506) (1,496) (1,519)

Pretax Income 2,064 1,432 3,734 3,407

Provision for income taxes 813 559 1,443 1,319

Net Income before minority interest 1,251 873 2,291 2,088

Minority interest in Westwood Park LLC 101 3 85 (15)

Net Income $1,150 $ 870 $ 2,206 $ 2,103

Basic Earnings Per Share $ .65 $ .50 $ 1.25 $ 1.21

Dividends Per Share $ .24 $ .23 $ .72 $ .68

Condensed Consolidated Balance Sheets

Pennichuck Corporation and Subsidiaries

(In thousands)

September 30 December 31

2000 1999

Assets

Plant in service $88,342 $83,071

Accumulated depreciation (21,867) (20,066)

66,475 63,005

Current Assets 5,672 5,998

Land development costs 3,384 3,753

Other assets 3,307 2,825

Total Assets $78,838 $75,581

Stockholders’ Equity and Liabilities

Common stock $ 1,770 $ 1,761

Paid in capital 14,634 14,458

Retained earnings 11,305 10,361

Treasury stock (291) (323)

27,418 26,257

Minority interest 380 295

Long-term debt 27,154 27,223

Current Liabilities 3,383 3,130

Other liabilities and deferred credits 20,503 18,676

Total Stockholders’ Equity and Liabilities $78,838 $75,581

The Company's Form 10-QSB filed quarterly with the Securities and Exchange Commission is available to shareholders upon request. Shareholders who are interested in the Company's dividend reinvestment and common stock purchase plan may obtain a prospectus by writing directly to the Company. For additional information about the Company, please visit our website at www.pennichuck.com.

4370 3QTR00