Rainfall levels in southern New Hampshire during the third quarter of 2008set a new record of 25 inches compared to the prior record of 20 inches in1991 and the long term average of 10 inches for this three month period.Furthermore, this year's third quarter rainfall was spread relativelyevenly over each of the three months in the quarter, further impactingcustomers' summer irrigation and other outdoor usage. Consolidatedrevenues for the third quarter of 2008 were $8.4 million, as compared to$9.4 million for the same quarter in 2007.

For the nine months ended September 30, 2008, net income was $4.2 million,or $.99 per share (basic), compared with net income of $3.1 million, or$.74 per share (basic), for the nine months ended September 30, 2007. Theincrease in 2008 year-to-date net income was due principally to thecombined effects of a non-operating after-tax gain of approximately $2.3million from the sale of the Company's interests in three commercial officebuildings in Merrimack, New Hampshire, higher utility operating revenuesand lower eminent domain costs. Partially offsetting these positivefactors were a 2007 non-operating after-tax gain of approximately $749,000from the sale of eight cell tower leases and higher costs in 2008 in theareas of utility operating expenses and interest expense. Year-to-datewater utility operating revenues increased $434,000 due to the combinedeffects of rate increases for Pennichuck Water and Pennichuck East sincethe first quarter of 2007 and, to a lesser extent, customer growth, net ofa decline in water usage volumes that resulted from the record rainfalllevels in the third quarter of this year. Consolidated revenues for thenine months ended September 30, 2008 were $23.1 million, as compared to$22.5 million for the same period in 2007.

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 benefitting 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 6, 2008. As part of its filing, Pittsfield Aqueducthas requested a temporary rate increase totaling $718,000 per annum withthe same service rendered effective date.

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 $5.1 million. Included in the$5.1 million are two proposed step increases that, if approved, wouldincrease annual revenues by approximately $1.9 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 July 28, 2008.

No revenues from either of these two 2008 rate relief filings have beenincluded in third quarter 2008 results and no assurance can be given as tothe final outcome of any rate increase filing until final order by theNHPUC.

The Company is continuing to pursue the current Pennichuck Water rate casedespite the July 2008 order from the NHPUC that, subject to certainconditions, the taking of the operating assets of Pennichuck Water by theCity of Nashua is in the public interest and that the price to be paid forsuch assets is $203 million (the "Eminent Domain Order"). The Company andthe City have filed motions for rehearing before the NHPUC and, ifnecessary, the Company will consider an appeal to the New Hampshire SupremeCourt. The Company remains opposed to an eminent domain taking of theoperating assets of Pennichuck Water pursuant to the terms of the EminentDomain Order.

Commenting on the results for the third quarter of 2008, Duane C.Montopoli, Pennichuck's President and Chief Executive Officer, said, "Whilewe are disappointed with Pennichuck's third quarter results, it should berecognized that the earnings decline was largely attributable to rainfalllevels that were the highest on record, and we've been keeping such datasince the late 1800s. Our water utility operating costs are predominatelyfixed in nature and so a drop in water usage volumes means a revenuedecrease that almost entirely goes to the pre-tax bottom line. We lookforward to more normal weather patterns, continued diligent management ofour business, and the completion of the two rate cases we presently havebefore 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."

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 statement.

Pennichuck CorporationComparative Financial ResultsQuarter Ended September 30:         2008         2007                                ------------ ------------Consolidated Revenues           $  8,440,000 $  9,359,000Operating Income                $  2,455,000 $  3,800,000Net Income                      $    913,000 $  1,613,000Earnings Per Share:    Basic                       $       0.21 $       0.38    Diluted                     $       0.21 $       0.38Average Shares Outstanding:    Basic                          4,243,987    4,222,996    Diluted                        4,266,333    4,274,180Nine Months Ended September 30:     2008         2007                                ------------ ------------Consolidated Revenues           $ 23,122,000 $ 22,478,000Operating Income                $  5,507,000 $  6,287,000Net Income                      $  4,195,000 $  3,124,000Earnings Per Share:    Basic                       $       0.99 $       0.74    Diluted                     $       0.98 $       0.73Average Shares Outstanding:    Basic                          4,236,880    4,220,578    Diluted                        4,268,176    4,265,823