Consolidated year-to-date revenues in 2002 were $11,918,000, or $1,935,000 more than the same period last year, chiefly due to a $2,430,000 land sale which occurred in January 2002 compared to $579,000 in land sales last year. Combined utility revenues of $8,414,000 for 2002 were $356,000 greater than in the first six months of 2001 reflecting the net effect of the recently implemented rate increase, a 2.1% growth in the utilities’ customer base as well as a 5.4% decrease in billed consumption from last year.

In April 2002, the Company entered into a definitive agreement with Philadelphia Suburban Corporation (“PSC”) to merge in a stock-for-stock transaction. The merger is subject to several conditions, including among other things, the satisfaction of the applicable requirements under the Hart-Scott-Rodino Antitrust Improvements Act, the approval by the shareholders of the Company and approval by the New Hampshire Public Utilities Commission, and is presently expected to close during the first half of 2003.

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 PSC 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 PSC and Pennichuck at the Commission's website at www.sec.gov.  The proxy statement/prospectus and such other documents may also be obtained from PSC 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
Comparative Second Quarter and Six Months Results of Operations