Utilico Emerging Markets Limited Unaudited Statement Of Results For The Six Months To 30 September 2007

Hamilton, Bermuda: November 20, 2007 - "Once again the first six months of UEM's year have been testing times for emerging markets investors so I am pleased to report UEM has performed well. The NAV per ordinary share rose from 146.45p to 187.80p after paying a final dividend of 0.70p for the year ended 31 March 2007. This represents a gain of 28.2%. The average annual compound return per ordinary share since inception stood at 36.0% at the end of the half-year.

In common with previous periods, the portfolio has outperformed the MSCI EMF (Sterling adjusted) index. The MSCI gained 24.9% for the six months versus 28.2% for UEM. Over the last twelve months UEM has seen its NAV per ordinary share gain 56.8% versus the MSCI which gained 42.3%. Over this period UEM underperformed the MSCI in only two of the last twelve months.

During the six months UEM increased its bank facility with Halifax Bank of Scotland ("HBOS") to £80.0m. As at 30 September 2007, £64.2m of this facility was drawn, all in US dollars. As a result gearing has increased to 16.9% from 15.6%.

The managers continue to utilise contracts for difference and have increased the gross position to £25.3m (£14.4m at 31 March 2007) against which £14.4m was held as collateral.

The managers have continued to increase the absolute level of market protection by investing in S&P 500 index put options and put option spreads. As at 30 September 2007 there were no short put options as these had expired the week before and total market protection at that date was £200.0m.  Since period end the put option spreads have been completed and the current net equity protection is £105.0m equivalent to 25.0% of the gross assets (31 March 2007 - £78.4m or 25.0% of the gross assets).

The revenue and expenses were broadly in line with the manager's expectations. The revenue return per share was negatively impacted by the increased costs associated with the increased borrowings taken on by UEM. Offsetting this was the change in accounting policy to capitalise 70.0% of finance costs and management fees. The resultant revenue earnings per share was 3.58p per ordinary share, up 49.8% on the same period last year. The board has declared an interim dividend of 3.50p.

The managers continue to keep a firm control on costs. The annualised management and administration costs were 0.8% for the six months, marginally lower than previous periods.

The market price of the ordinary shares increased by 26.4% to 173.50p as at 30 September 2007. This represents a small premium to the diluted NAV per ordinary share of 173.43p. We continue to see strong shareholder support for UEM.

On 6 November 2007 we announced our intention to raise up to £100.0m by way of a placing and open offer of C shares and subscription shares. Further we are seeking a listing on the Channel Islands Stock Exchange, which will enable UK PEP and ISA holders to invest in the Company for the first time. We expect to post a circular to shareholders and warrant-holders, seeking the approval of the C share issue, towards the end of November.

Looking forward the conflicting forces on the market and contrasting outlooks coupled with the range of issues facing the markets are expected to result in continued volatility.

We continue to believe the world's economic activity will retreat from the high growth levels seen over the last twelve months, but we still anticipate sound economic progress from emerging markets. Furthermore, we believe the long-term growth prospects for infrastructure, utility and related companies within emerging markets are strong and UEM's portfolio remains well positioned to benefit from this progress."

Alexander Zagoreos