For the six months ended June 30, 2008, net income was $3.3 million, or$.78 per share (basic), compared with net income of $1.5 million, or $.36per share (basic), for the six months ended June 30, 2007. Current yearfirst half net income was higher due principally to a non-operatingafter-tax gain of approximately $2.3 million from the sale of the Company'sinterests in three commercial office buildings in Merrimack, New Hampshire.This was offset, in part, by a prior year first half non-operatingafter-tax gain of approximately $749,000 from the February and June 2007sale of eight of the Company's cell tower leases. Excluding thenon-recurringafter-tax gains from both years, earnings per share for the first half of2008 and 2007 would have been $.24 per share (basic) and $.18 per share(basic), respectively.

Consolidated revenues for the second quarter of 2008 were $7.9 million, ascompared to $7.1 million for the same quarter in 2007. For the six monthsended June 30, 2008, consolidated revenues were $14.7 million, as comparedto $13.1 million for the same period in 2007. Revenues for the quarter andsix-month periods were higher due principally to rate relief granted to theCompany's Pennichuck Water and Pennichuck East utility subsidiaries priorto the second quarter of this year. The Company's total combined utilitycustomer base as of June 30, 2007 and June 30, 2008 was 32,600 and 33,100,respectively, an increase of 1.5%.

In May of this year, the Company's Pittsfield Aqueduct utility subsidiaryfiled for rate relief with the New Hampshire Public Utilities Commission("NHPUC") to recover increased operating expenses and to obtain recovery ofand a return on capital improvements principally benefiting water systemsacquired in mid-2006. Pittsfield Aqueduct requested an overall increase inrates that, if approved in its entirety, would result in an annual increasein revenues of approximately $1.2 million effective for service renderedfrom and after June 1, 2008. As part of its filing, Pittsfield Aqueducthas requested a temporary rate increase totaling $718,000 per annum withthe same service rendered effective date. A hearing for permanent rates isscheduled for March 2009 with a final order from the NHPUC expected in thesecond quarter of that year.

In June of this year, Pennichuck Water filed for rate relief with the NHPUCto recover increased operating expenses and to obtain recovery of and areturn on capital improvements principally for the ongoing major upgrade toits water treatment plant, the replacement of a 5.5 million gallon watertank, the installation of radio meter reading equipment, and thereplacement of aging infrastructure. Pennichuck Water requested an overallincrease in rates that, if approved in its entirety, would result in anannual increase in revenues of approximately $5.5 million. Included in the$5.5 million are two proposed step increases that, if approved, wouldincrease annual revenues by approximately $2.3 million. As part of itsfiling, Pennichuck Water has requested a temporary rate increase totalingapproximately $2.4 million per annum effective for service rendered fromand after August 1, 2008. A Pre-Hearing Conference with the NHPUC isscheduled for later this month. The Company expects to continueprosecuting this rate case despite the recent order from the NHPUC that,subject to certain conditions, the taking of the operating assets ofPennichuck Water is in the public interest and that the price to be paidfor such assets is $203 million (the "Eminent Domain Order").

Commenting on the Eminent Domain Order, Duane C. Montopoli, Pennichuck'sPresident and Chief Executive Officer, said, "Based on advice of counsel,we believe that the NHPUC's order contains a number of significant legalerrors that undermine its validity. Accordingly, we expect to seek arehearing before the NHPUC. Thereafter, if necessary, we will consider anappeal to the New Hampshire Supreme Court, which must be filed within 30days of a ruling by the NHPUC on the rehearing. The full rehearing andappeal process could take a year or more. If the City's right to take theutility assets is ultimately upheld, its aldermanic board would then stillhave to decide whether or not to proceed with the taking assuming it isable to finance the purchase." A press release on this subject was issuedby the Company on July 28, 2008.

No revenues from these recent rate relief filings were included in secondquarter 2008 results and no assurance can be given as to the final outcomeof any rate increase filing until final order by the NHPUC.

Pennichuck Corporation is a holding company involved principally in thesupply and distribution of potable water in New Hampshire through its threeregulated water utilities. Its non-regulated, water-related activitiesinclude operations and maintenance contracts with municipalities andprivate entities in New Hampshire and Massachusetts. The Company's realestate operations are involved in the ownership, management andcommercialization of real estate in southern New Hampshire.

Pennichuck Corporation's common stock trades on the Nasdaq Global Marketunder the symbol "PNNW." The Company's website is at www.pennichuck.com.

This news release may contain certain forward-looking statements withrespect to the financial condition, results of operations and business ofPennichuck Corporation. Forward-looking statements are based on currentinformation and expectations available to management at the time thestatements are made, and are subject to various factors, risks anduncertainties that could cause actual results to differ materially fromthose expressed or implied by such forward-looking statements. Thesefactors include, but are not limited to, the timing and results of arehearing before the New Hampshire Public Utilities Commission regardingits recent eminent domain order (the "Eminent Domain Order") in favor ofthe City of Nashua, New Hampshire; the timing and results of a possibleappeal to the New Hampshire Supreme Court regarding the Eminent DomainOrder; the impact of an eminent domain taking by Nashua on businessoperations and net assets; legislation and/or regulation and accountingfactors affecting Pennichuck Corporation's financial condition and resultsof operations; the availability and cost of capital, including the impacton our borrowing costs of changes in interest rates; and, the impact ofweather. Investors are encouraged to access Pennichuck Corporation'sannual and quarterly periodic reports filed with the Securities andExchange Commission for financial and business information regardingPennichuck Corporation, including a more detailed discussion of these andother risks and uncertainties that could affect Pennichuck Corporation'sforward-looking statements. We undertake no obligation to update or revisepublicly any forward-looking statements.

Pennichuck CorporationComparative Financial ResultsQuarter Ended June 30:                      2008           2007                                        ------------   ------------Consolidated Revenues                   $  7,940,000   $  7,126,000Operating Income                        $  2,046,000   $  1,818,000Net Income                              $    792,000   $  1,349,000Earnings Per Share:   Basic                                $       0.19   $       0.32   Diluted                              $       0.19   $       0.32Average Shares Outstanding:   Basic                                   4,235,847      4,220,894   Diluted                                 4,266,998      4,271,060Six Months Ended June 30:                   2008           2007                                        ------------   ------------Consolidated Revenues                   $ 14,682,000   $ 13,119,000Operating Income                        $  3,052,000   $  2,487,000Net Income                              $  3,282,000   $  1,511,000Earnings Per Share:   Basic                                $       0.78   $       0.36   Diluted                              $       0.77   $       0.35Average Shares Outstanding:   Basic                                   4,233,288      4,219,350   Diluted                                 4,269,109      4,261,575