Investor Info 2004

For Immediate Release:
August 13, 2004

Contact:    Donald L. Correll., President and Chief Executive Officer
Charles J. Staab, VP, Treasurer and Chief Financial Officer

Phone: 603-913-2300
Fax: 603-913-2305

Pennichuck Corporation Announces Second Quarter 2004
Operating Results—

Customer Growth Improves Utilities' Operating Income; Eminent Domain
Costs Continue to Adversely Affect Consolidated Earnings

(Nashua, NH) -- Donald L. Correll, President and Chief Executive Officer of Pennichuck Corporation, announced today that for the quarter ended June 30, 2004 the Company earned $215,000, or $.09 per share, compared to net income of $393,000, or $.16 per share for the same quarter in 2003. Mr. Correll indicated that, among things, the results of operations for the three months ended June 30, 2004 were adversely impacted by approximately $379,000 of legal and other costs relating to the City of Nashua's ongoing eminent domain efforts. Excluding the effects of these charges, the Company's net income for the quarter ended June 30, 2004 was $446,000, or $.19 per share compared to $439,000, or $.18 per share for the quarter ended June 30, 2003. For the six months ended June 30, 2004, the Company's consolidated net income was $194,000, or $.08 per share, compared to $539,000, or $.23 per share for the same period in 2003.

Consolidated revenues for the second quarter of 2004 were $5.4 million, representing a 2.9% increase over the same quarter in 2003. Consolidated revenues for the first half of 2004 were $10.21 million compared to $10.12 million for the first half of 2003. The combined revenues of the Company's three utilities increased nearly 7% from $4.57 million in the second quarter of 2003 to $4.89 million for the quarter ended June 30, 2004. Mr. Correll attributed that increase principally to a 2% growth in new customers, especially in the utilities' outlying community water systems and a 2.1% increase in the utilities' billed water sales reflecting lower levels of rainfall during the second quarter of 2004. As a result, the utilities' combined operating income for the second quarter increased to $1.27 million, or nearly 18% over the same period in 2003. Mr. Correll pointed out that none of the eminent domain costs relating to the City of Nashua's efforts have been charged or allocated to the Company's three utilities.

Revenues from the Company's non-regulated water service business increased to $482,000 for the quarter ended June 30, 2004 compared to $390,000 in the same period last year. The increase in contract revenues over the same period last year is principally due to additional work performed under the two largest operating contracts with the Town of Hudson, New Hampshire and the Town of Salisbury, Massachusetts. During the first half of 2004, the non-regulated water service company did not acquire any significant new operating contracts.

Pennichuck Corporation is a holding company located in Nashua, New Hampshire with diversified businesses involved in regulated water supply and distribution in Nashua 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".