Conversion of C Shares

Utilico Emerging Mkts Utilities Ltd
26 June 2006


26 June 2006


                   UTILICO EMERGING MARKETS UTILITIES LIMITED


Investment of proceeds of issue of C Shares and New Warrants, conversion of C
Shares and cancellation of New Warrants

Utilico Emerging Markets Utilities Limited ('UEM') is pleased to announce that
following the issue of C Shares and New Warrants (the 'Issue'), which raised
£98.4million (net of expenses) in May 2006, the Company's Investment Manager,
Ingot Capital Management Pty Limited, notified the Directors on 23 June 2006
that more than 80% of the net proceeds of the Issue have been invested.
Therefore, and in accordance with the terms of the C Shares, the Directors have
determined that the Calculation Date for the conversion of the C Shares into
Ordinary Shares will be 30 June 2006. The conversion will be made on the basis
of the respective net asset values of the C Shares and Ordinary Shares as at the
Calculation Date.

A notice will be sent to all C Shareholders within 10 business days of the
Calculation Date setting out details of the conversion, including the Conversion
Date (which will be no later than close of business on 14 July 2006), Conversion
Ratio and the numbers of Ordinary Shares and Deferred Shares to which each C
Shareholder will be entitled. A further announcement will be made at that time
containing, inter alia, details of the Conversion Ratio, the Conversion Date and
the respective net asset values as at 30 June 2006; following the regular
announcement of net asset values as at Tuesday 27 June 2006 no further
announcement of net asset values will be made before this date.

The number of New Warrants will be adjusted in accordance with their terms and
CREST accounts will be adjusted, or holders of New Warrants will receive a
certificate, in respect of their revised holdings, as appropriate.

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.

Report and accounts and form of proxy for the period ended 31 March 2006

A copy of the above documents have been posted to Shareholders and will be
available from the Company's Secretary and Administrator at F&C Management
Limited, Exchange House, Primrose Street, London EC2A 2NY (020 7628 8000).

Enquiries:

Utilico Emerging Markets Utilities Limited
Charles Jillings                                   01372 271 486



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