Investor Info 2002

For Immediate Release:
March 20, 2003

Contact:    Maurice L. Arel, President & Chief Executive Officer
                  Charles J. Staab, VP, Treasurer & Chief Financial Officer
Phone: 603-882-5191
Fax: 603-882-4125

For Immediate Release
Pennichuck Corporation Announces 2002 Earnings

Maurice L. Arel, President and Chief Executive Officer of Pennichuck Corporation announced today that the Company’s consolidated net income for the year ended December 31, 2002 was $2.34 million, compared to consolidated net income of $3.61 million in 2001. On a per share basis, basic earnings per share was $.98 compared to $1.52 for 2001. The $.54 decrease in consolidated earnings per share was principally due to the transaction expenses incurred during 2002 relating to the proposed merger with Philadelphia Suburban Corporation, which was subsequently terminated in February 2003. Excluding the effect of those merger expenses, consolidated net income for 2002 was $3.53 million, or $1.48 per share.

Mr. Arel stated that the combined revenues of the Company's utilities increased to $18.83 million, or 8% more than in 2001. The increase is primarily due to the positive effect of an 8.67% rate increase granted to Pennichuck Water Works, Inc. in September 2001 and an additional 5.76% rate increase granted in March 2002. Combined net income for the Company's three utilities increased from $1.94 million in 2001 to $2.51 million in 2002.

Mr. Arel added that revenues generated from the Company's real estate activities during 2002 were $3.09 million compared to $4.16 million in 2001. Last year’s revenues include approximately $2.43 million from the sale of the remaining 40 acres in Southwood Corporate Park. Contract operations and other activities generated revenues of $1.5 million in 2002 compared to $1.19 million in 2001. Mr. Arel noted that the increase in contract revenues reflects the addition of a municipal operating contract in October 2001 as well as 12 smaller system contracts added during 2002.

Pennichuck Corporation is a holding company involved principally in the supply and distribution of potable water in southern and central New Hampshire through its three regulated water utilities. Its non-regulated, water-related activities include operations and maintenance contracts with municipalities and private entities in New Hampshire and Massachusetts. The Company’s real estate operations are involved in the ownership, management and development of real estate in the greater Nashua, New Hampshire area. Pennichuck Corporation’s common stock trades on the Nasdaq NMS under the symbol “PNNW”.