Interim Management Statement

United Utilities PLC

30 January 2008

                 UNITED UTILITIES INTERIM MANAGEMENT STATEMENT                 

United Utilities today issues a trading update for the period from 1 October
2007 to 29 January 2008. Current trading is in line with the group's
expectations.

The regulated water business is benefiting this financial year from allowed
price increases, including inflation, of 8.3 per cent to help invest in its
network and provide essential services for customers.

United Utilities' balance sheet remains robust and its asset base continues to
grow in line with management's expectations as the company has entered the peak
phase of its substantial regulated capital investment programmes.

During the period, United Utilities Water PLC (A3, stable; A-, stable) redeemed
a €1 billion 6.625% bond from existing cash resources and raised £35 million of
long-term, index-linked funding.

The group completed the sale of its electricity distribution assets on 19
December 2007 for a 45 per cent premium to the forecast 31 March 2008
regulatory asset value. The net equity proceeds of £1,050 million from this
sale, along with other balance sheet resources to create a more efficient
capital structure, are expected to be utilised to enable the planned £1.5
billion return of value to shareholders. Looking ahead, the group intends to
target an investment grade credit rating of A3 for United Utilities Water PLC,
which it believes best mirrors regulatory assumptions.

As detailed in United Utilities' half yearly financial report, published on 29
November 2007, the Board outlined a new dividend policy to reflect the revised
composition of the group. The dividend per share from 2008/09 will be reduced
by 30 per cent from the 2007/08 base. Thereafter, the group's revised dividend
policy is intended to target a sustainable and growing level of dividends and
will improve dividend cover. The new target real growth rate of RPI+2% will be
applied from 2009/10 to the 2008/09 revised dividend per share.

In line with its strategy of focusing on core skills, during the period the
group sold its industrial liquid waste operations to Tradebe. These operations
were very small in the context of the group.

United Utilities is the leading utility infrastructure outsourcing company in
the UK and earlier this month secured an 18-month extension to its metering
contract with British Gas Trading, which now runs through to 30 June 2010. This
extension is estimated to be worth an additional £45 million in revenue to
United Utilities.

United Utilities published its Strategic Direction Statement in December 2007
which takes a long term view of the challenges facing the group's water and
wastewater businesses over the next 25 years. It is the first element in the
process of agreeing what United Utilities will deliver between 2010 and 2015
and allows the five-year regulatory plan to be put into a longer term context.
In addition, United Utilities responded earlier this month to Ofwat's
consultation paper "Setting price limits for 2010-15: Framework and approach"
and this response has been published on the company website
(www.unitedutilities.com).

The group's focus on its core skills has helped deliver operational and service
improvements for customers. United Utilities Water remains on course to meet
the 2007/08 economic level of leakage rolling target of 465 megalitres per day,
as set by Ofwat.

The group's business improvement initiatives continue to progress well and
United Utilities Water remains on track to deliver its regulatory efficiency
targets. With clarity on future regulated revenue flows, management is
confident of delivering profits in line with its expectations for the year.

In line with its usual practice, United Utilities intends to issue a pre-close
trading update on 26 March 2008.

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]     
                                                                             
Dominic Fry / Peter Hewer, Tulchan Communications    [phone]