Higher revenues for the second quarter of 2009 resulted from increasedwater rates granted to the Company's Pennichuck Water and PittsfieldAqueduct regulated water utility subsidiaries in December 2008, highernon-regulated water services revenue, and a take-or-pay payment from anindustrial customer that was recognized as revenue in the quarter, net ofthe effects of year-over-year lower water usage volumes. Residentialcustomer water usage, which comprised approximately 67% of total waterdemand, decreased 3% for the three months ended June 30, 2009 compared tothe same period in 2008. For the same comparative periods, commercialcustomer water usage, which comprised approximately 14% of total waterdemand, decreased 4%. These decreases in water usage volumes were due tothe combined effects of the current economic recession, an unusually rainyJune and continued conservation efforts by our customers. Also in thesecond quarter of 2009, industrial customer water usage, which comprisedapproximately 14% of total water demand, was down compared to the sameperiod in 2008 due principally to a drop in usage by a large industrialcustomer that resulted from an energy conservation program implemented bythat customer in the third quarter of 2008. However, the revenue effect ofthis industrial usage decline was more than offset by the take-or-paypayment from that customer pursuant to the terms of its supply contract,which payment was recognized as revenue in the second quarter of 2009.Looking ahead, year-over-year comparative demand by that industrialcustomer is expected to generally stabilize beginning in the third quarterof 2009. The Company's total combined utility customer base as of June 30,2009 and June 30, 2008 was 33,400 and 33,100, respectively, an increase ofapproximately 1%.

Earnings for the second quarter of 2009 were essentially flat with earningsfor the same quarter in the preceding year due to the combined effects ofhigher second quarter 2009 water utility operating expenses andnon-regulated service business operating expenses, coupled with lowersecond quarter 2009 Allowance for Funds Used During Construction ("AFUDC")and interest income. Higher water utility operating expenses includedincreased general and administrative costs, increased customer accountingexpenses and increased transmission and distribution expenses, offset inpart by lower production costs. Eminent domain-related costs were $70,000in the second quarter of 2009 compared to $4,000 in the same quarter of theprior year.

For the six months ended June 30, 2009, net income was $695,000, or $.16per share (diluted), on revenues of $15.5 million. Adjusted for eminentdomain-related costs in the period, earnings would have been $.19 per share(diluted). This compares to net income of $3.3 million, or $.77 per share(diluted), for the same period in 2008, on revenues of $14.7 million. Theprior year's first half net income was higher due principally to anon-operating, after-tax gain of approximately $2.3 million from the saleof the Company's interests in three commercial office buildings (the"HECOPs") in Merrimack, New Hampshire. Excluding the gain from the sale ofthe HECOPs and excluding first half 2008 eminent domain-related costs,earnings for the six months ended June 30, 2008 would have beenapproximately $.24 per share (diluted). The decrease from $0.24 per shareto $.19 per share was due principally to lower AFUDC and lower interestincome in the current year. Eminent domain-related costs were $188,000 inthe first half of 2009 compared to $16,000 in the first half of 2008.Operating income of $3.1 million for the first half of 2009 was essentiallyunchanged from 2008.

Pennichuck Water currently has a rate case before the New Hampshire PublicUtilities Commission ("NHPUC") that, if approved in its entirety, wouldresult in an annualized increase in revenues of approximately $5.1 million.This rate case was filed to recover increased operating expenses and toobtain recovery of and a return on capital improvements principally for thethen ongoing major upgrade to the Company's water treatment plant, thereplacement of a 5.5 million gallon water tank, the installation of radiometer reading equipment and the replacement of aging infrastructure. InDecember 2008, the NHPUC issued an order granting Pennichuck Water anannualized temporary increase in revenues of approximately $2.4 million, or11%. At a hearing on May 19, 2009, the Company and the NHPUC Staffpresented a settlement agreement to the NHPUC Commissioners which proposesa permanent rate increase of approximately $4.7 million, or 22%. Thisincludes a proposed 10.4% step increase to be effective for bills renderedfrom and after the date of issuance by the NHPUC of a final order for thisrate case. While the Company anticipates that a final order should beissued at any time, its timing and terms are subject to the discretion ofthe NHPUC. The estimated dollar amounts and percentages herein are basedon 2007 water usage volumes.

Pittsfield Aqueduct also has a rate case before the NHPUC pursuant towhich, in December 2008, the NHPUC issued an order granting PittsfieldAqueduct an annualized temporary increase in revenues of approximately$666,000. In January 2009, Pittsfield Aqueduct filed a motion with theNHPUC to extend the procedural schedule and to allow it to modify itsrequest for permanent rate relief. A final hearing on this case regardingthe establishment of permanent rates is scheduled for late September ofthis year.

The temporary rate relief that has been granted by the NHPUC for bothPennichuck Water and Pittsfield Aqueduct does not necessarily reflect theultimate outcome of the underlying requests for permanent rate relief. Anydifference between the temporary rate relief that has been granted and thepermanent rates ultimately approved by the NHPUC for these utilities willbe reconciled upon the approval of permanent rates.

Regarding the Company's eminent domain dispute with the City of Nashua, NewHampshire ("Nashua"), both the Company and Nashua have filed appeals withthe New Hampshire Supreme Court (the "Court"). The Court has agreed tohear the appeals and has set a briefing schedule, but has not yet set adate for oral arguments. The Company's initial brief is currentlyscheduled to be filed with the Court on September 14, 2009. The Companyexpects that the Court is not likely to render a decision before early2010.

Commenting on the Company's results for the quarter, Duane C. Montopoli,Pennichuck's President and Chief Executive Officer, said, "Considering thecurrent economic recession and the abnormally wet June, we are pleased tohave generally maintained our earnings level in the second quarter.Looking ahead, and considering the pending Pennichuck Water rate casebefore the NHPUC, we believe we are well positioned to benefit from anymovement back to historical norms with respect to the economy and theweather." Commenting on the ongoing eminent domain dispute with the Cityof Nashua, he added, "We continue to believe that, subject to gainingrequired approvals, a stock acquisition of Pennichuck by Nashua in fullsettlement of this dispute could result in significantly better economicsfor all parties relative to an eminent domain taking pursuant to the termsof the July 2008 NHPUC order."

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 results of the appeal to theNew Hampshire Supreme Court of the reaffirmed eminent domain order of theNew Hampshire Public Utilities Commission in favor of the City of Nashua,New Hampshire; 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 Corporation and Subsidiaries                      Comparative Financial ResultsQuarter Ended June 30:                                2009         2008                                                  ------------ ------------Operating Revenues                                $  8,452,000 $  7,940,000Operating Income                                  $  2,239,000 $  2,046,000Net Income                                        $    763,000 $    792,000Earnings Per Common Share:   Basic                                          $       0.18 $       0.19   Diluted                                        $       0.18 $       0.19Weighted Average Common Shares Outstanding:   Basic                                             4,253,870    4,235,847   Diluted                                           4,272,528    4,266,998Six Months Ended June 30:                             2009         2008                                                  ------------ ------------Operating Revenues                                $ 15,475,000 $ 14,682,000Operating Income                                  $  3,069,000 $  3,052,000Net Income                                        $    695,000 $  3,282,000Earnings Per Common Share:   Basic                                          $       0.16 $       0.78   Diluted                                        $       0.16 $       0.77Weighted Average Common Shares Outstanding:   Basic                                             4,253,218    4,233,288   Diluted                                           4,263,124    4,269,109