Caribbean Utilities Company, Ltd. announces Rights Offering



    Caribbean Utilities Company, Ltd. is listed for trading in United States
    dollars on the Toronto Stock Exchange under the trading symbol "CUP.U".

    GRAND CAYMAN, Cayman Islands, June 23 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC" or the "Company") (TSX: CUP.U) today announced that it is
commencing a rights offering (the "Offering") as described below. Gross
proceeds of the Offering will be approximately US$28 million. The Company
intends to use the proceeds of the Offering (after payment of the expenses of
the Offering) to repay approximately US$18.5 million of indebtedness, and the
balance will be used to finance capital projects.
    The Company will be issuing rights ("Rights") to eligible holders of
record ("Shareholders") of outstanding Class A Ordinary Shares of the Company
("Class A Ordinary Shares") at the close of business on July 14, 2008 (the
"Record Date") to subscribe for additional Class A Ordinary Shares on the
terms set forth in a rights offering circular (the "Circular") to be mailed by
the Company to Shareholders. The Circular will also be available at the
Canadian Securities Administrators' SEDAR website at www.sedar.com. Each
Shareholder will receive one Right for each Class A Ordinary Share held on the
Record Date. Each ten (10) Rights entitle the holder to acquire one Class A
Ordinary Share of the Company upon payment of the subscription price of
US$11.09 per share prior to the expiration of the Rights at 4:00 pm (Toronto
time) on August 15, 2008 and satisfaction of the other requirements for
exercise of the Rights set forth in the Circular. Shareholders who exercise
all of their Rights will also be entitled to acquire additional Class A
Ordinary Shares, if any, which are not subscribed for by other holders of
Rights pursuant to an additional subscription privilege, the terms of which
are described in the Circular. Shareholders that hold their Class A Ordinary
Shares indirectly, including through a broker, CDS Clearing and Depository
Services Inc. ("CDS") or a participant in the CDS system should contact the
broker, CDS or the CDS participant to determine how Rights may be exercised.
    Fortis Energy (Bermuda) Ltd. ("Fortis Bermuda"), which is the Company's
largest shareholder, has entered into a stand-by agreement with the Company
pursuant to which Fortis Bermuda has agreed to purchase all Class A Ordinary
Shares issuable on the exercise of Rights which are not acquired by other
holders of Rights or pursuant to the additional subscription privilege.
    Except as set forth in the Circular, the Rights and underlying Class A
Ordinary Shares are not being offered to, and the Rights may not be exercised
by, persons who are residents of any jurisdiction other than the Cayman
Islands, the Provinces of Canada and the United States (provided such U.S.
person certifies that he is an "Approved U.S. Accredited Investor", as defined
in the Circular). For further details, please refer to the section in the
Circular entitled "Ineligible Shareholders".
    CUC President and Chief Executive Officer, Richard Hew stated, "The
completion of this offering of Class A Ordinary Shares will strengthen our
balance sheet and support capital expenditures necessary to meet continued
growth in demand for electricity in Grand Cayman. In particular, it will
assist in the financing of a 16 megaWatt capacity expansion to be carried out
under our generation alliance relationship with MAN Diesel SE." Mr. Hew also
noted that the offering of rights to raise equity ensured that existing
shareholders had an equal opportunity to participate in acquiring additional
shares.

    The TSX has neither approved nor disapproved the form or content of this
    information release.

    The Rights and underlying Class A Ordinary Shares have not been and will
not be registered under the United States Securities Act of 1933, as amended
and may not be offered or sold to any person within the United States of
America, except persons who certify to the Company that they are Accredited
Investors as described in the Circular, and subscriptions will not be accepted
from any other person within the United States of America. This press release
shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of these securities in any state in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

    CUC is the sole provider of electricity to Grand Cayman, Cayman Islands.
Further information is available at www.cuc-cayman.com.

    Caribbean Utilities Company, Ltd. ("CUC" or the "Company"), on occasion,
includes forward-looking statements in its media releases, Canadian securities
regulatory filings, shareholder reports and other communications; certain
statements in this media release are forward-looking statements.
Forward-looking statements include statements that are predictive in nature,
depend on future events or conditions, or include words such as "expects",
"anticipates", "plan", "believes", "estimates", "intends", "targets",
"projects", "forecasts", "schedule", or negative versions thereof and other
similar expressions, or future or conditional verbs such as "may", "will",
"should", "would" and "could". Forward-looking statements are based on
underlying assumptions by their very nature and are subject to certain risks
and uncertainties that may cause actual results to vary from plans, targets
and estimates. Such risks and uncertainties include but are not limited to
general economic, market and business conditions, regulatory developments and
weather conditions. CUC cautions readers that actual results, including the
commencement and completion of the Offering, may vary significantly from those
expected should certain risks or uncertainties materialize or should
underlying assumptions prove incorrect. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as required by
law.

    %SEDAR: 00002251E




For further information:

For further information: Douglas H. Murray, Corporate Secretary, Phone:
(345) 949-5200, Fax: (345) 949-4621, Email: investor@cuc.ky


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