NAV and C Share Conversion

Utilico Emerging Mkts Utilities Ltd
13 July 2006

13 July 2006

                   UTILICO EMERGING MARKETS UTILITIES LIMITED

                      Net Asset Value as at 30 June 2006,
            Conversion of C Shares and cancellation of New Warrants

Further to its announcement dated 26 June 2006, Utilico Emerging Markets
Utilities Limited ('UEM') announces the following information in relation to Net
Asset Value as at 30 June 2006 and the Conversion of C Shares and cancellation
of New Warrants, including the Conversion Date and Conversion Ratio.

Net Asset Value as at 30 June 2006

The net asset values of the Ordinary Shares and the C Shares as at the
Calculation Date, being 30 June 2006, were as detailed below (at bid market
values, in £ sterling with prior charges at nominal value):

                                                                 pence
Ordinary Shares
Net Asset Value - ex income                                      106.81
Net Asset Value - cum income                                     108.57 *
Net Asset Value - diluted ex income                              105.68
Net Asset Value - diluted cum income                             107.14

C Shares
Net Asset Value - ex income                                       96.80
Net Asset Value - cum income                                      97.19 *
(there is no dilution for C Shares)

Conversion Ratio

On the basis of the above net asset values (marked *), the Conversion Ratio for
Conversion of the C Shares is 0.89516615 Ordinary Shares for every one C Share.

On the basis of the Conversion Ratio, a holder of 10,000 C Shares and 2,000 New
Warrrants will receive 8,951 new Ordinary Shares on Conversion and his holding
of New Warrants will be reduced to 1,790 New Warrants. Fractions will be rounded
down to the nearest whole share and the nearest whole warrant.

Conversion Date

The Directors have determined that the Conversion Date will be close of business
on 14 July 2006. Entitlements on Conversion will be calculated on the basis of
holdings of C Shares and New Warrants as at the Conversion Date.

New Warrants

In accordance with the terms of the instrument constituting the New Warrants, on
Conversion, such number of New Warrants held by each warrantholder will be
cancelled so as to ensure that the total number of New Warrants outstanding
following such cancellation is equal to one fifth of the number of Ordinary
Shares arising on Conversion and such cancellation shall be effected pro rata by
reference to each warrantholder's holding of New Warrants immediately prior to
the Conversion Date.

Upon Conversion and the cancellation of the New Warrants, the terms and
conditions of the New Warrants will be deemed to be varied so that their terms
are exactly the same as the terms and conditions of the warrants issued by the
Company in connection with its launch in July 2005, including as to subscription
rights. Accordingly, following Conversion, warrantholders will be entitled to
exercise all or any part of their reduced holding of New Warrants on 31 July
2006.

Dealings, CREST and share certificates

Dealings in the Ordinary Shares arising from Conversion and the reduced number
of New Warrants are expected to commence at 8.00 a.m. on 17 July 2006.

CREST accounts will be credited in respect of Ordinary Shares arising from
Conversion, and will be adjusted in respect of Warrants, on 17 July 2006. Share
certificates and Warrant certificates will be despatched, as appropriate, during
the week commencing 17 July 2006.

Shares in issue

Following Conversion, as at 8.00 a.m. on Monday 17 July 2006 UEM's issued
capital is expected to be:

Class                                        Number in issue       ISIN

Ordinary shares of 10p each                      164,600,497    BMG931151069
Warrants to subscribe for Ordinary Shares         32,904,089    BMG931151143

The ISINs for the C Shares (BMG931151226) and New Warrants (BMG931151309) will
be cancelled at that time.

Other matters

A notice is today being sent to all C Shareholders and New Warrantholders
setting out details of the Conversion, including the Conversion Date, Conversion
Ratio, and the number of Ordinary Shares to which each C Shareholder would be
entitled and the reduced number of New Warrants to which each New Warrantholder
would be entitled, on the basis of their holdings as at the close of business on
12 July 2006.

Further details of the conversion and rights attaching to the C Shares and New
Warrants are set out in UEM's prospectus in relation to the issue of C Shares
and New Warrants dated 7 April 2006. Terms defined in the prospectus shall have
the same meaning in this announcement unless otherwise defined.

Enquiries

Utilico Emerging Markets Utilities Limited
Charles Jillings                                    01372 271 486



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