United Utilities Trading Update

United Utilities Group PLC

22 September 2011

                        UNITED UTILITIES TRADING UPDATE                        

United Utilities Group PLC today issues an update for the six months ending 30
September 2011. Current trading is in line with the group's expectations and
the company's operational and efficiency initiatives continue to progress well.
The business remains on track to deliver its outperformance targets.

As outlined in the group's 2010/11 full year results, published on 26 May 2011,
United Utilities has now adopted a single segment for financial reporting
purposes.

Revenue in the first half of this year is higher than the corresponding period
last year, largely as a result of the impact of the regulated price increase
for 2011/12 of 4.5% nominal (0.2% real price decrease plus 4.7% RPI inflation).
However, as outlined previously, operating expenses are also expected to rise,
principally as a result of higher infrastructure renewals expenditure and
depreciation, alongside other inflationary cost pressures. It is anticipated
that regulatory capital investment and depreciation will be higher in the
second half of 2011/12, compared with the first half of the year.

United Utilities' financial position remains robust with the group having
headroom to cover its projected financing needs into the second half of 2013,
consistent with its prudent liquidity policy. Reflecting this robust financing
position, the group intends to accelerate approximately £100 million of
previously agreed pension deficit payments, providing a higher investment
return for the group than could have been achieved through short term deposits.

The underlying net finance expense for the first half of 2011/12 is expected to
be slightly higher than the first half of last year. This reflects additional
finance expense relating to the £200 million index-linked loan facility with
the European Investment Bank, drawn down between March and May 2011, and
marginally higher RPI inflation in respect of the group's index-linked debt
with an eight month lag.

A deferred taxation credit of approximately £50 million will be recognised in
the financial statements for the first half of 2011/12. This follows the UK
government substantively enacting the change to reduce the mainstream rate of
corporation taxation from 26% to 25% from 1 April 2012. A similar credit was
also recognised in the first half of last year.

Group borrowings, net of cash and short term deposits and derivatives, at the
half year are expected to be moderately higher than the position at 31 March
2011. This principally reflects expenditure on the regulatory capital
investment programme, payment of the 2010/11 final dividend and payments in
relation to pensions, interest and tax, partly offset by operational cash
flows.

United Utilities will announce its half year results on 23 November 2011.

United Utilities contacts:

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