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Investor Info 2002 For
Immediate Release: Contact:
Maurice L. Arel, President and Chief Executive Officer
Pennichuck
Corporation Announces First Quarter 2002 Earnings The
Company’s consolidated revenues for the first quarter of 2002 increased
from $4,410,000 in 2001 to $6,865,000 in 2002, principally due to
a major land sale in January 2002. Our combined utilities’ revenues
amounted to $3,952,000 versus $3,613,000 for the prior year, a 9.4%
increase. The increase is attributable to an 8.52% temporary rate
increase granted to Pennichuck Water Works, Inc. in September 2001.
In March 2002, the New Hampshire Public Utilities Commission issued
a final order in which it approved new permanent rates providing an
overall rate increase relative to rates in effect before the rate
case of 14.43%. Revenues from real estate activities were $2,578,000 in the first quarter versus $577,000 for the same period last year. The significant increase was due to the sale of the remaining land in Southwood Corporate Park. Revenues from our non-regulated water service business increased to $322,000 from $206,000 for the same period last year. The
Company recently entered into a definitive agreement with Philadelphia
Suburban Corporation (“PSC”) to merge in a stock-for-stock transaction
which, including the assumption of $27.1 million of debt, has a projected
total enterprise value of approximately $106 million based on a price
for PSC of between $23 and $25 per share. The merger, which is subject
to, among other things, the Pennichuck Corporation is a holding company located in Nashua, New Hampshire with diversified businesses involved in regulated water supply and distribution in cities and towns throughout southern and central New Hampshire; non-regulated, water-related services and operations; and real estate management and development. Pennichuck
Corporation is traded on the Nasdaq NMS exchange under the symbol “PNNW”.
This
communication may be deemed to be solicitation material in respect of
the proposed acquisition of Pennichuck by PSC, pursuant to an Agreement
and Plan of Merger, dated as of April 29, 2002, by and between Pennichuck
and PSC. Pennichuck and its directors and executive officers may be
deemed to be participants in the solicitation of proxies in respect
of the transactions contemplated by the Agreement and Plan of Merger.
Information
concerning any direct or indirect interest in the proposed merger of
Pennichuck’s directors and executive officers, including their beneficial
ownership of Pennichuck common stock and the terms of change of control
or similar arrangements with certain of Pennichuck’s executive officers,
may be found in Pennichuck’s proxy statement filed with the SEC under
Schedule 14A on April 2, 2002 and in the proxy statement/prospectus
to be filed by Pennichuck and PSC in connection with the transaction.
The proxy statement is available, and the proxy statement/prospectus
when filed will be available, for free both on the SEC’s website (http://www.sec.gov)
or by contacting the Corporate Secretary at Pennichuck at (603) 882-5191.
Investors
and security holders are advised to read the definitive registration
statement and proxy statement/prospectus regarding the business combination
transaction referenced in the foregoing information, when it becomes
available, because it will contain important information. The
registration statement and proxy statement/prospectus will be filed
with the Securities and Exchange Commission by Philadelphia Suburban
and Pennichuck. Investors and security holders may obtain a free copy
of the registration statement and proxy statement/prospectus (when they
are available) and other documents filed by Philadelphia Suburban and
Pennichuck at the Commission's website at www.sec.gov. The proxy statement/prospectus
and such other documents may also be obtained from Philadelphia Suburban
or from Pennichuck by directing such request to Philadelphia Suburban
Corporation, 762 West Lancaster Avenue, Bryn Mawr, Pennsylvania 19010,
Attn: Corporate Secretary; or to Pennichuck Corporation, 4 Water Street,
Nashua, NH 03060. Pennichuck
Corporation
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