MERRIMACK, NH (October 2, 2006) - Duane C. Montopoli, President and Chief Executive Officer of Pennichuck Corporation, (NASDAQ: PNNW) announced that the company's Board of Directors declared a quarterly dividend of $0.165 per share payable on December 1, 2006 to shareholders of record as of November 15, 2006. This quarterly dividend remains unchanged from the previous quarter and results in an annualized dividend rate of $0.66 per share. Mr. Montopoli also noted that the Company's next dividend reinvestment date under the Company's Dividend Reinvestment and Common Stock Purchase Plan is December 1, 2006. Shareholders wishing to purchase additional shares under that plan should ensure that their payment is received by the Company's transfer agent (American Stock Transfer & Trust Company) no later than November 24, 2006. Additional information about the Company's Dividend Reinvestment and Common Stock Purchase Plan is contained in the Plan prospectus which is available upon request to American Stock Transfer & Trust Company or online at www.amstock.com.

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.