Agreement to sell UK/European non-reg interests

United Utilities Group PLC

14 June 2010

  UNITED UTILITIES AGREES TO SELL ITS PRINCIPAL UK AND EUROPEAN NON-REGULATED  
                                WATER INTERESTS                                

United Utilities today announces that it has agreed to sell its principal
non-regulated water interests* in the United Kingdom and Europe to Veolia Water
UK PLC. The transaction value is £174.2 million, comprising £108.6 million in
cash on completion and £65.6 million in net debt assumed by the purchaser. A
further £10 million in cash is payable on a deferred basis, subject to certain
contingencies.

Completion of the transaction is expected in the second half of 2010 and is
subject to a number of consents and regulatory approvals. United Utilities
expects to retain the proceeds within the group.

United Utilities contacts:

Gaynor Kenyon, Communications Director                   [phone]    
                                                                               
Darren Jameson, Head of Investor Relations               [phone]    
                                                                               
James Bradley / Tom Murray, Tulchan Communications       [phone]  

Notes

*United Utilities' principal non-regulated water interests include:

  * its 57.8% holding in Sofiyska Voda AD in Bulgaria;
   
  * its 26.5% holding in AS Tallinna Vesi in Estonia;
   
  * its 33.2% holding in Aqua Spolka Akcyjna in Poland;
   
  * its stake in the 2010-15 capital management contract with Southern Water;
   
  * its stake in the capital delivery contract with Southern Water to manage
    the design and build of a new wastewater treatment works in the Brighton
    and Hove area;
   
  * its UK industrial solutions business; and
   
  * three Scottish private finance initiatives (33.33% of Catchment Moray
    Holdings Limited, 33.33% of Catchment Tay Holdings Limited and 50.0% of
    Catchment Highland Holdings Limited) and associated operations contracts.
   

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