Director Shareholding

UNITED UTILITIES PLC                              

                                 18 March 2003                                 

The following announcement is being made in accordance with 16.13 of the
Listing Rules.

In connection with the operation of the Qualifying Employee Share Ownership
Trust (QUEST), and in conjunction with the exercise of share options under the
Save-As-You-Earn (SAYE) employee share schemes, United Utilities PLC allotted
46,624 ordinary shares today (at the 10.00am mid-market price of 603.25p) to
the QUEST Trustee for transfer in accordance with the rules of the SAYE
schemes.

The current issued share capital is 556,373,483 ordinary shares. The allotment
amounts to 0.008%.

The 46,624 shares were then transferred to employees on the exercise of options
on the maturity of Save-As-You-Earn Sharesave Schemes. The option price was in
the range of 471.5p to 616.5p per share.

The following directors hold options in the United Utilities SAYE schemes and
are deemed to have had a technical interest in 46,624 ordinary shares being the
total held by the QUEST following the above subscription and ceased to have an
interest when those shares were transferred to the participants.

John Roberts

Simon Batey

Les Dawson

Gordon Waters

Further information can be obtained from Tim Rayner, Company Secretary 44 1 925
237071.

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United Utilities' ordinary shares trade on the London Stock Exchange and its
ADRs, each equal to two ordinary shares, trade on the New York Stock Exchange
under the Trading Symbol 'UU'.