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For Immediate Release:
April 20, 2004

Contact: Donald L. Correll, President and CEO
Phone: 603-882-5191 

PENNICHUCK SUES CITY OF NASHUA FOR $5-6 MILLION
New Hampshire's Oldest Business Claims Civil Rights Violations

NASHUA, N.H. - Citing blatant abuse of government authority, Pennichuck Corporation (NASDAQ: PNNW) today sued the city of Nashua for more than $5 million in damages.

The suit filed in Hillsborough County Superior Court claims the city has abused its government power and deliberately deprived Pennichuck and its subsidiaries of their civil rights. The claims stem from nearly two years of threats and actions by the city to take the assets of Pennichuck by eminent domain, including assets well beyond the city's legal reach.

Pennichuck, an investor-owned public water utility and New Hampshire's oldest continuously operating business, has provided water and related services to Nashua and area towns since 1852. The company is claiming that the city is abusing its eminent domain power in an attempt to:

• Take Pennichuck assets that it knows it has no legal authority to take;
• Freeze the company in a kind of business limbo so that it can't conduct its normal business operations;
• Coerce the company into accepting the city's unreasonable demands.

"Pennichuck officers and directors have a legal obligation to protect the vested interests of our customers, employees and shareholders," said Donald L. Correll, Pennichuck president and chief executive officer.

"We cannot ignore the fact that Nashua's leaders have deliberately deprived Pennichuck of our civil right to conduct business freely. And we cannot ignore the fact that Nashua's leaders have caused and continue to cause significant financial damages to Pennichuck."
"Because of the seriousness and magnitude of these liabilities, and because the city continues the inappropriate use of government power, Pennichuck is taking the appropriate legal action to recover our losses," Correll said.

The legal filing claims $5 million to $6 million in financial losses comprised of:

Four of the six Pennichuck allegations against the city cite deprivation of civil rights under the U.S. and New Hampshire Constitutions. Pennichuck is accusing the city of:

• Blatantly abusing government authority
  
• Intentionally killing a business merger without justification
  
• Causing significant financial losses to Pennichuck
  
• Depriving Pennichuck's right to be free from inappropriate use of government power
  
• Depriving Pennichuck's freedom to pursue business opportunities
  
• Misleading and oppressing the rights of shareholders and prospective investors
  
• Taking Pennichuck's assets without compensation
  
• Committing unfair and deceptive business practices

Pennichuck shareholders may consider taking separate legal steps to recover $20 million to $30 million in lost share value due to the cessation of the merger, and $7 million to $8 million for the value of Pennichuck shares traded on November 20 and 21, 2003. Pennichuck's annual meeting of shareholders will take place on April 23rd in Nashua.

The entire legal filing is available to the public on the Pennichuck Web site www.pennichuck.com (see Municipalization Update).

About Pennichuck Corporation
Pennichuck Corporation is a holding company located in Nashua, New Hampshire with three wholly owned operating subsidiaries involved in regulated water supply and distribution in Nashua and towns throughout southern and central New Hampshire; non-regulated, water-related services conducted through Pennichuck Water Service Company; and real estate management and development activities conducted through The Southwood Corporation.

Pennichuck Corporation is traded on the NASDAQ Stock Market under the symbol "PNNW."