CONTACT: Dave Smeltzer
                                                         Chief Financial Officer

                                                                 Maurice L. Arel
                                                               President and CEO
                                                          Pennichuck Corporation
                                                          603-882-5191 ext. 5300


Acquisition immediately accretive; adds seventh state to nation's second largest
                                 water utility

     BRYN MAWR, PA AND NASHUA NH, APRIL 29, 2002 - PSC (NYSE: PSC), the nation's
second largest investor-owned water utility holding company, and Pennichuck
Corporation (NASDAQ: PNNW) the largest investor-owned water utility in New
Hampshire, announced that they have entered a definitive agreement to merge in a
stock transaction which, including the assumption of $27 million of debt, has a
total enterprise value of approximately $106 million, and represents $33.00 per
Pennichuck share based on a PSC share price of $23.00 to $25.00. The transaction
is expected to be accretive to PSC earnings on an ongoing basis exclusive of
one-time transaction costs.

     The merger will create a combined company with 630,000 customer accounts
serving more than two million residents in seven states (New Hampshire, Maine,
Pennsylvania, New Jersey, Ohio, Illinois, and North Carolina) and increase PSC's
customer base by five percent.

     The merger is expected to close before the end of the year. The transaction
represents a premium for Pennichuck shareholders of over 20 percent based on the
closing prices of Pennichuck and PSC common stock on Friday.

     Noting that there are only a few U.S. based investor-owned water utilities
remaining as a result of rapid consolidation in the industry over the past five
years, PSC Chairman Nicholas DeBenedictis said, "This transaction represents the
launching of another growth platform for PSC. Our already-successful
growth-through-acquisition strategy continues to enhance shareholder value. For
Pennichuck, the transaction represents opportunities to leverage the technical,
water quality and purchasing strengths of a much larger company while continuing
to deliver the same excellent service that customers currently enjoy."

     Pennichuck's Chief Executive Officer Maurice L. Arel said, "This
transaction makes a great deal of sense for the Pennichuck shareholders, giving
them an immediate premium for their shares while maintaining substantially the
same dividend rate and the added benefit of greater liquidity. Additionally, we
will have the benefit of joining a much larger company (20 times our size) that
has experienced an annual growth in shareholder value of 22.5 percent over the
past five years. PSC has a strong management team and with the Pennichuck
addition, looks forward to continued growth and increased earnings."

     Arel will become a director of PSC upon closing of the merger. He intends
to retire from Pennichuck as of the end of this year. Arel's replacement as the
new CEO of Pennichuck is expected to be chosen from the company's local
executive management team.

     SG Barr Devlin served as financial advisor to Pennichuck Water Company.
Pennichuck currently serves approximately 30,000 customers (120,000 residents)
in 23 communities throughout southern New Hampshire.

     PSC is currently the second largest, investor owned water utility in the
country, serving approximately two million residents in six states:
Pennsylvania, Ohio, Illinois, New Jersey, North Carolina and Maine.

This press release contains forward-looking statements. These forward-looking
statements are found in various places throughout this press release and
include, without limitation, statements regarding the expected timing and
benefits of the acquisition, including the amount and type of consideration to
be received by Pennichuck Corporation shareholders as well as the tax
consequences of the transaction. While these forward-looking statements
represent our judgments and future expectations concerning the development of
our business and the timing and benefits of the acquisition, a number of risks,
uncertainties, and other important factors could cause actual developments and
results to differ materially from our expectations. These factors include, but
are not limited to, the failure of the PNNW shareholders to approve the
transaction; the reaction of the public markets to the transaction; the risk
that PNNW's business will not be successfully integrated into PSC; the costs
related to the transaction; the inability to obtain or meet conditions imposed
for governmental approvals for the transaction; the risk that anticipated
benefits will not be obtained or not obtained within the time anticipated; and
other key factors that we have indicated could adversely affect our business and
financial performance contained in our past and future filings and reports,
including those filed with the Securities and Exchange Commission. Neither PSC
nor PNNW is under any obligation (and each expressly disclaims any such
obligation) to update or alter its forward-looking statements whether as a
result of new information, future events, or otherwise

                                      # # #

Investors and security holders are advised to read the definitive registration
statement and proxy statement/prospectus regarding the business combination
transaction referenced in the foregoing information, when it becomes available,
because it will contain important information.

This communication may be deemed to be solicitation material in respect of the
proposed acquisition of Pennichuck by PSC, pursuant to an Agreement and Plan of
Merger, dated as of April 29, 2002, by and between Pennichuck and PSC.
Pennichuck and its directors and executive officers may be deemed to be
participants in the solicitation of proxies in respect of the transactions
contemplated by the Agreement and Plan of Merger.

Information concerning any direct or indirect interest in the proposed merger of
Pennichuck's directors and executive officers, including their beneficial
ownership of Pennichuck common stock and the terms of change of control or
similar arrangements with certain of Pennichuck's executive officers, may be
found in Pennichuck's proxy statement filed with the SEC under Schedule 14A on
April 2, 2002 and in the proxy statement/prospectus to be filed by Pennichuck
and PSC in connection with the transaction. The proxy statement is available,
and the proxy statement/prospectus when filed will be available, for free both
on the SEC's website ( or by contacting the Corporate
Secretary at Pennichuck at (603) 882-5191.

The registration statement and proxy statement/prospectus will be filed with the
Securities and Exchange Commission by Philadelphia Suburban and Pennichuck.
Investors and security holders may obtain a free copy of the registration
statement and proxy statement/prospectus (when they are available) and other
documents filed by Philadelphia Suburban and Pennichuck at the Commission's
website at The proxy statement/prospectus and such other documents
may also be obtained from Philadelphia Suburban or from Pennichuck by directing
such request to Philadelphia Suburban Corporation, 762 West Lancaster Avenue,
Bryn Mawr, Pennsylvania 19010, Attn: Corporate Secretary; or to Pennichuck
Corporation, 4 Water Street, Nashua, NH 03060.