AGM and Interim Management Statement

United Utilities PLC

25 July 2008

               UNITED UTILITIES PLC 2008 ANNUAL GENERAL MEETING                

                       AND INTERIM MANAGEMENT STATEMENT                        

United Utilities issues a trading update ahead of its Annual General Meeting,
to be held today at the Bridgewater Hall, Manchester. Commenting on the group's
performance for the year ended 31 March 2008, Chairman, Sir Richard Evans will
say:

"The group has had a successful year. We have delivered good profit growth and
further operational improvements. We sold United Utilities Electricity for a
substantial premium to its regulatory asset value, addressed the portfolio and
capital structure of the group and announced a new dividend policy. We remain
on course to return approximately £1.5 billion to shareholders.

"Consistent with our previous policy of growing dividends in line with
inflation, the Board is proposing to increase the final dividend by 3.87 per
cent compared with the previous year."

As previously announced, Sir Richard Evans will step down as Chairman and a
director at the conclusion of the Annual General Meeting after more than ten
years on the Board. He will introduce Dr John McAdam to the meeting who was
appointed to the Board as a non-executive director on 4 February 2008. It is
proposed that Dr John McAdam will replace Sir Richard Evans as Chairman with
effect from the close of the meeting. Dr John McAdam is expected to step down
from the Audit Committee and the Remuneration Committee assuming that he is
re-appointed by shareholders and elected Chairman. Norman Broadhurst will step
down as a non-executive director and a member of the Audit Committee after nine
years on the Board. With effect from 26 February 2008 he was replaced as
Chairman of the Audit Committee by Paul Heiden, already a non-executive
director. Sir Richard Evans and Norman Broadhurst have given valuable service
to the group and the Board thanks them for their contributions.

United Utilities has continued to deliver its strategy of focusing on its core
skills of managing water, wastewater, electricity and gas networks. Consistent
with this strategy, the group sold United Utilities Electricity for an
enterprise value of £1,782 million in December 2007 and holds a £1.5 billion
contract to operate the electricity distribution network in the north west
through to 2015. In addition, United Utilities disposed of its residual stake
in THUS Group plc in June 2007 for approximately £76 million.

As a result of the sale of United Utilities Electricity and review of its
capital structure, United Utilities previously announced its intention to
return to shareholders 170 pence per share (approximately £1.5 billion in
aggregate). The proposed return is being implemented through a B share scheme
involving the introduction of United Utilities Group PLC as the new holding
company for United Utilities. On 6 June 2008, United Utilities posted a
circular to shareholders regarding these proposals. A prospectus relating to
United Utilities Group PLC was also published, in connection with the admission
of its ordinary shares to the Official List and to trading on the London Stock
Exchange's main market for listed securities.

On 1 July 2008 shareholders voted in favour of the scheme of arrangement to
allow United Utilities Group PLC to be put in place as the new listed holding
company of United Utilities. Yesterday, 24 July 2008, the High Court of Justice
sanctioned the scheme of arrangement.

Today, 25 July 2008, is expected to be the final day for dealings in United
Utilities PLC shares. Shareholders on the register at 6:00pm today (UK time)
can expect to receive 1 B share of 170 pence for each ordinary share in United
Utilities PLC and 17 ordinary shares in United Utilities Group PLC for every 22
shares held in United Utilities PLC.

On Monday, 28 July 2008, United Utilities PLC ordinary shares are scheduled to
be delisted and dealings in ordinary shares of United Utilities Group PLC are
expected to commence on the London Stock Exchange's main market for listed
securities. The B shares of United Utilities Group PLC will not be listed.

It is expected that the return of value will proceed in accordance with the
timetable previously announced, subject to confirmation of United Utilities
Group PLC's reduction of capital at a further court hearing scheduled for 30
July 2008.

As previously indicated, the 2008/09 dividend per share will be reduced by 30%
compared with the proposed 2007/08 dividend per share of 46.67p, reflecting the
revised composition of the group. Thereafter, the group's revised dividend
policy is intended to target a sustainable and growing level of dividends. The
new target real growth rate of RPI+2% will be applied from 2009/10 to the 2008/
9 revised dividend per share.

Current trading and outlook

Current trading is in line with the group's expectations. In 2008/09, the
regulated business is allowed a 7.8 per cent price increase (including
inflation) to help fund substantial investment in its assets and deliver
further customer and environmental benefits. The group is confident of meeting
its regulatory efficiency targets across the 2005-10 period, despite increasing
cost pressures in areas such as power and property rates.

Improving operational performance is an integral part of the group's vision to
be a world class operator of utility infrastructure. The company is making good
progress against its key performance indicators of leakage, relative
efficiency, pollution, sewer flooding and customer satisfaction and remains on
course to meet its medium term targets. United Utilities outperformed its
regulatory leakage target for the second consecutive year. The 2007/08 target
was 465 megalitres per day, a tougher target than the previous year.

United Utilities has agreed a new strategy with the regulator for processing
and disposing of sewage sludge. Its capital investment programme has been
re-profiled to reflect this agreement and the company is now broadly in line
with regulatory assumptions.

The group is pre-funded for its capital investment programme through to 2010.
This funding position takes account of the expected forthcoming return of
approximately £1.5 billion to shareholders and a redemption of a $500 million
6.45 per cent bond on 1 April 2008. United Utilities has a long-standing
relationship with the European Investment Bank which recently approved a new £
400 million term loan facility to support the remainder of the company's
current capital investment programme. This new loan facility will enhance the
group's liquidity position further.

The proceeds from the sale of United Utilities Electricity have served to lower
group net debt, but this reduction is expected to be short-term as the majority
of the £1.5 billion return is likely to take place in August 2008. The Board is
targeting a credit rating of A3 for United Utilities Water PLC and, following
the return of approximately £1.5 billion, is anticipating a group net debt to
regulatory capital value gearing level towards the upper end of Ofwat's range
(55% to 65% for the 2005-10 price control period) by 2010.

As outlined in the United Utilities' 2008 annual report, the company is
forecasting a one-off deferred tax charge in 2008/09 relating to the abolition
of industrial buildings allowances. This one-off adjustment is anticipated to
be over £200 million and is likely to result in a significant increase in the
effective tax rate for the year ended 31 March 2009. However, the cash impact
will be spread over a period of approximately 20 years.

United Utilities' preparations for the forthcoming price review are well
advanced and the company is in active deliberations with its regulators and
other key stakeholders. The group is on track to submit its draft business plan
to Ofwat in August 2008.

United Utilities is the leading utility infrastructure outsourcing company in
the UK and consolidated this position through the recent extension of the
contract with Southern Water, via the 4D consortium, which now runs to 2015.

The group continues to benefit from RPI inflation-linked revenue streams and
management is confident of meeting its expectations in the current financial
year.

United Utilities' contacts

For further information please contact:

Philip Green, Chief Executive                        [phone]     
                                                                             
Tim Weller, Chief Financial Officer                  [phone]     
                                                                             
Gaynor Kenyon, Communications Director               [phone]     
                                                                             
Darren Jameson, Head of Investor Relations           [phone]     
                                                                             
Tom Murray, Tulchan Communications                   [phone]