FOR RELEASE: May 7, 2002

                                     Filed by: Philadelphia Suburban Corporation
               Pursuant to Rule 425 under the Securities Act of 1933, as amended
                                         Subject Company: Pennichuck Corporation
                                                    Commission File No.: 0-18552

                                                           Contact: Donna Alston
                                                         Manager, Communications

                                                                  Randi Polanich
                                                Senior Communications Specialist



     BRYN MAWR, PA, May 7, 2002 - Philadelphia Suburban Corporation (NYSE:PSC)
announced today that Standard and Poor's (S&P) affirmed its ratings outlook on
PSC's largest subsidiary--Pennsylvania Suburban Water Company (PSW)--following
PSC's announcement last Monday (4/29/02) that it had reached a definitive merger
agreement with Pennichuck Corporation (NASDAQ:PNNW) which was approved by
both companies' boards.

     The S&P report said, "Although PSC is unrated, Standard & Poor's considers
the overall credit quality of the holding company when determining the ratings
of PSW."

     PSC Chairman Nicholas DeBenedictis said, "Although the affirmation of the
rating is specific to Pennsylvania Suburban Water Company, we are encouraged by
S&P's acknowledgment that '...the substantial equity used to fund the
acquisition will not adversely affect the financial profile of PSC, the
acquisition will provide a measure of geographic and regulatory diversity, and
while Pennichuck is not rated, an analysis of its financial profile indicates
that the utility's credit quality is at or above the average.'"

     The report also said, "The stable outlook reflects PSW's competitive
position, Standard & Poor's expectations of continued regulatory support,
adequate rate relief to recover capital investments, and good growth prospects
supported by additional, disciplined acquisitions."

     Effective January 1, 2002, S&P assigned a corporate credit rating and first
mortgage bonds credit rating to PSC's then newly-formed largest subsidiary,
Pennsylvania Suburban Water Company. S&P assigned its A+ corporate credit rating
and AA- senior secured debt rating to the company's first mortgage bonds and
described the company's outlook as "stable."

     S&P referenced the company's above average service territory, supportive
regulatory environment, ample and quality water supplies, efficient operations
and disciplined management team that focuses on growth through acquisitions.

     PSC is the nation's second largest investor-owned water utility serving
nearly two million residents in Pennsylvania, Ohio, Illinois, New Jersey, Maine
and North Carolina. PSC is a publicly-traded company listed on both the New York
and Philadelphia Stock Exchanges under the ticker symbol "PSC" and has been
committed to the preservation and improvement of the environment throughout its
history, which spans more than 100 years.

This press release contains forward-looking statements. These forward-looking
statements are found in various places throughout this press release and
include, without limitation, the effect on the financial profile of PSC of the
equity used to fund the acquisition, the geographic and regulatory diversity
provided by the acquisition, the continued regulatory support of PSW, the
granting of rate relief to recover capital investments, growth prospects
supported by future acquisitions and future operating results. 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.

                                      # # #

A 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. The definitive registration
statement and proxy/prospectus should be read carefully before making a decision
concerning the transaction. Investors and security holders are urged to read
Philadelphia Suburban's registration statement on Form S-4 and the proxy
statement/prospectus and any other relevant documents relating to the
transaction when they become available, because they will contain important

                                      # # #

                                                     (Pennichuck S&P rating.doc)