Proposed C Share Issue

Utilico Emerging Mkts Utilities Ltd
02 March 2006


For release at 7:00AM on 2 March 2006


      Utilico Emerging Markets Utilities Limited ('UEM' or the 'Company')

                              Proposed Fundraising

The Board of UEM is pleased to announce that, in response to both new investor
and existing shareholder demand, it is considering proposals for a further issue
of equity securities to raise up to £100 million.

In the light of this demand, the Company's strong performance since its launch
in July 2005 and the premium to net asset value at which its ordinary shares are
trading, the Board of UEM intends to expand the Company through an issue of C
shares with warrants. The issue is expected to comprise a £75 million open offer
to existing shareholders and a placing of up to £25 million with new investors.
It is intended that the net proceeds will be accounted for and managed as a
separate pool of assets until conversion of the C shares into ordinary shares of
the Company and will be applied in making investments in accordance with the
Company's existing investment objective.

The Company anticipates formally launching the C share issue and posting formal
documentation to shareholders to seek their approval for the issue in April
2006.

Charles Jillings, Executive Director, commented 'The emerging markets
infrastructure sector continues to offer attractive investment opportunities.
Our confidence has grown from our experience with the investment of the initial
funds raised and we are excited about raising and investing further funds in
this sector.'

Alex Zagoreos, Chairman, added 'The management team's confidence and ability to
invest has resulted in a strong net asset value and share price performance
since launch of the Company.  The proposed increase in size will give the
managers the opportunity to increase their influence and position in this
exciting area of emerging markets.'

Enquiries:

Utilico Emerging Markets Utilities Limited    Tel. [phone]
Charles Jillings, Executive Director

Arbuthnot Securities Limited                  Tel. [phone]
Alastair Moreton
Rupert Stevenson



THESE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US
SECURITIES ACT OF 1933, AS AMENDED (THE 'SECURITIES ACT'), OR WITH ANY
SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED
STATES. THE OFFER, SALE, PLEDGE OR TRANSFER OF THESE SECURITIES IS SUBJECT TO
CERTAIN CONDITIONS AND RESTRICTIONS. THE HOLDER HEREOF, BY PURCHASING OR
OTHERWISE ACQUIRING THESE SECURITIES, ACKNOWLEDGES THAT THESE SECURITIES HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT AND THAT THE ISSUER
HAS NOT REGISTERED AND WILL NOT REGISTER UNDER THE US INVESTMENT COMPANY ACT OF
1940, AS AMENDED (THE 'INVESTMENT COMPANY ACT'). THE HOLDER AGREES FOR THE
BENEFIT OF THE ISSUER, ANY DISTRIBUTORS OR DEALERS AND ANY SUCH PERSONS'
AFFILIATES THAT THESE SECURITIES MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT, THE INVESTMENT COMPANY
ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND ONLY (1) IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT TO A NON-US
PERSON (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT, 'US PERSON') OR (2)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (PROVIDED
THAT, IF SUCH TRANSFER PURSUANT TO THIS CLAUSE (2) IS TO A US PERSON, THE
PURCHASER IS A QUALIFIED PURCHASER WITHIN THE MEANING OF THE INVESTMENT COMPANY
ACT), AND IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF THE
STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. THE HOLDER ACKNOWLEDGES
THAT THE PURPOSE OF THE FOREGOING LIMITATION IS, IN PART, TO ENSURE THAT THE
ISSUER IS NOT REQUIRED TO REGISTER UNDER THE INVESTMENT COMPANY ACT.


Arbuthnot Securities Limited, which is authorised and regulated by the Financial
Services Authority, is acting for the Company only and will not be responsible
to any other person for providing the protections afforded to customers of
Arbuthnot Securities Limited or for advising such person on the matters referred
to in this announcement.




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