MERRIMACK, NH (May 3, 2005) - Donald L. Correll, President and Chief Executive Officer of Pennichuck Corporation, (NASDAQ: PNNW) today announced that the company's board of directors authorized a 2.3 percent cash dividend increase above the regular March 1, 2005 quarterly cash dividend payment and also approved a stock split effected in the form of a 33 1/3 percent stock distribution. Both the increased dividend and stock distribution will be paid June 1, 2005 to shareholders of record on May 18, 2005.

Beginning with the June 1, 2005 payment, Pennichuck's quarterly dividend will increase to $.22 per share from $.215 per share ($.88 per share versus $.86 on an annualized basis) on the pre-split shares. The new quarterly cash dividend rate will be $.165 per share on the increased number of shares resulting from the stock distribution or $.66 per share annualized.

Mr. Correll said, "This action, to both split our stock and increase the dividend, is a strong indication of the confidence we have in the future. The company is making solid progress toward its key growth initiatives and remains focused on growing revenues, improving profitability, investing in infrastructure and broadening our customer base through acquisitions and new service contracts. Despite the ongoing distraction and cost of defending against the eminent domain action by the City of Nashua, the company believes that it is well-positioned to pursue new business opportunities in the year ahead. The increase in the dividend reflects our continued confidence in our long-term growth strategy and our commitment to provide consistent returns to our shareholders."

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". The Company's website is at www.pennichuck.com.

This news release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Pennichuck Corporation. Forward-looking statements are based on current information and expectations available to management at the time the statements are made, and are subject to various factors, risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, timing and results of eminent domain proceedings before the New Hampshire Public Utilities Commission, and the impact thereof on consolidated business operations; timing and amount of regulated water utility rate relief; changes in general economic conditions, legislation or regulation and accounting factors affecting Pennichuck Corporation's financial condition and results of operations; the timing and impact of acquisitions and new service contracts; and the impact of weather. Investors are encouraged to access Pennichuck Corporation's annual and quarterly periodic reports filed with the Securities and Exchange Commission for financial and business information regarding Pennichuck Corporation, including a more detailed discussion of these and other risks and uncertainties that could affect Pennichuck Corporation's forward-looking statements.