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Newspaper Article Reports That City Of Nashua Plans To Make Offer To Buy Pennichuck.

MERRIMACK, N.H. -- Pennichuck Corporation today announced that the Nashua Telegraph newspaper in its Saturday, November 18 edition reported that the City of Nashua plans to make an "offer to buy the company" in an apparent attempt to settle the ongoing eminent domain litigation between the parties. The Telegraph reported that on Friday, November 17 the City's board of aldermen voted 10-4 to send the City's attorneys to a settlement conference today at the New Hampshire Public Utilities Commission (the "PUC") to present the proposal. The article did not describe the price that the City proposed to pay, the structure of the transaction including the scope of the assets that the City would acquire, the manner in which the City would finance the transaction, or any other terms.

The eminent domain litigation between the parties is scheduled for trial before the PUC in January 2007. The Company has vigorously opposed the efforts of the City to acquire its assets by eminent domain and intends to continue to do so, although it has publicly stated its desire to work with the City toward a fair and equitable solution.

Commenting on the article, Duane C. Montopoli, Pennichuck's President & Chief Executive Officer, said, "We were unaware of this development until we saw the article in Saturday's paper. If the City makes a credible offer, the Pennichuck board will of course consider it. Pennichuck is skeptical, however, that any proposal that the City may make today will lead to a mutually acceptable settlement, and we therefore encourage our shareholders to be cautious in reacting to the Telegraph article."

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 areas.

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

This news release may contain 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 NHPUC, 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; 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.
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Publication:Business Wire
Date:Nov 20, 2006
Words:529
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