Pennichuck Water Works, Inc., a wholly-owned subsidiary of Pennichuck Corporation (NASDAQ:PNNW), today announced that, effective January 5, 2007, it completed the second of the three major phases of its planned $40 million upgrade to its water treatment plant in Nashua, NH. The major components of the recently completed second phase include a new finished water pumping station, a new 6.5 million gallon finished water storage tank, a new backwash holding tank and new finished water chemical feed facilities. Together with completed phase I, these improvements have greatly enhanced the plant's ability to meet the increasingly stringent water quality standards of the Federal Safe Drinking Water Act (the "SDWA").

The third phase of the upgrade, which will be completed over the next two years, involves the construction of a new water inlet system as well as upgrades to the plant's clarification, filtration and chemical feed facilities. Upon completion of all phases, the water treatment plant will be a state of the art facility capable of producing high quality water under a wide range of operating conditions. The ultimate goal is to ensure compliance with the SDWA water quality standards for many years to come and continue to supply Pennichuck's customers with clean, safe and reliable drinking water.

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.