Agreement to sell United Utilities Australia

United Utilities Group PLC

10 May 2010

UNITED UTILITIES AGREES TO SELL UNITED UTILITIES AUSTRALIA TO A CONSORTIUM LED 
                           BY MITSUBISHI CORPORATION                           

United Utilities today announces that it has entered into an agreement to sell
its 100 per cent owned subsidiary United Utilities Australia Pty Limited and
related entities ("UUA") to a consortium led by Mitsubishi Corporation. The
transaction value is approximately AUD225 million, comprising AUD176 million in
cash and AUD49 million in net debt assumed by the purchaser.

The consortium comprises Mitsubishi Corporation, the Innovation Network
Corporation of Japan ("INCJ"), Manila Water Company, Inc. and JGC Corporation
("the Consortium").

The transaction is subject to a number of consents and regulatory approvals. It
is expected that financial close will be achieved in the second half of 2010.

United Utilities contacts:

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

Notes

Information regarding United Utilities and UUA:

United Utilities is the United Kingdom's largest listed water company. Its
regulated water business serves approximately 3.2 million premises and a
population of approximately 7 million in the North West of England. United
Utilities also applies its utility skills to manage and operate other utility
infrastructure.

Since its inception in 1991, UUA has established itself as a strong participant
in the Australian water industry, providing a range of water and wastewater
treatment services to over 3 million people through a number of projects across
Australia. UUA's capabilities cover the full life cycle of water and wastewater
treatment projects including project finance, design and construction upgrades
and refurbishments, operation and maintenance, asset management, utility
services, laboratory testing, billing and customer services.

Information regarding the Consortium:

The Consortium has substantial investments in the water and wastewater
treatment sectors globally and adds significantly to the expertise and
experience of the existing UUA management team in the provision of design and
construction, operation and maintenance and asset management services. This
includes management of regulated water concessions, public-private partnerships
and design and construction of water and wastewater treatment plants.

Mitsubishi Corporation is Japan's largest general trading company with over 200
bases of operations in approximately 80 countries around the world, including
Japan. The company has considerable experience in operation and maintenance in
its home market through the 50 per cent ownership of Japan Water Corporation,
which manages several operation and maintenance contracts across Japan serving
14 municipalities and managing 250 water facilities. Mitsubishi Corporation
also has water treatment and desalination projects in Singapore, Pakistan,
Colombia and Saudi Arabia and in February 2010 established a partnership with
JGC Corporation and Ebara Corporation ("Ebara Partnership"). The Ebara
Partnership brings additional expertise in the design and construction and
operation and maintenance of water and wastewater treatment plants to the
Consortium. Mitsubishi Corporation is well established in the Australian
market, having conducted business in Australia since 1956 and undertaken
significant investments and strategic partnerships in the resources and
agribusiness sectors during that time.

INCJ is a public-private partnership aimed at providing financial,
technological and management support of next-generation businesses, with a
total investment capacity of up to USD10 billion. INCJ aims to enhance the
value of its investments by providing growth and risk capital for long term
earnings opportunities and providing management support to drive business
plans.

Manila Water Company, Inc. (in which Mitsubishi Corporation has been a
shareholder for 12 years) is one of the largest private water concessionaries
in the world, currently providing water supply, wastewater and reuse services
to over 6 million people in the east zone of Metro Manila, Philippines.

JGC Corporation is a leading global engineering company and has completed over
20,000 projects in more than 70 countries. The company has proprietary
engineering technology and pre-eminent project management capabilities in the
oil and gas, petrochemicals, hydrocarbons and power and water sectors. In
particular, it has extensive experience in environmental protection, resource
development and large-scale desalination projects. JGC Corporation is also a
member of the Ebara Partnership (referred to above).