Caribbean Utilities Company, Ltd. completes 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, Aug. 18 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC" or the "Company") (TSX: CUP.U) today announced that it
has successfully completed its previously announced rights offering and
related stand-by agreement (the "Offering"). Under the Offering, CUC raised
gross proceeds of US$28,218,700 through the issue of 2,544,518 Class A
Ordinary Shares at a price of US$11.09 per share. The Company intends to use
the proceeds (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. After giving effect to the Offering, CUC has an
aggregate of 27,989,700 Class A Ordinary Shares outstanding.
    Fortis Energy (Bermuda) Ltd. ("Fortis Bermuda"), an existing shareholder
of CUC, purchased an aggregate of 2,156,148 Class A Ordinary Shares under the
rights offering and a stand-by agreement with the Company. Fortis Bermuda now
holds 15,721,659 Class A Ordinary Shares, representing approximately 56% of
the outstanding Class A Ordinary Shares of CUC.
    Richard Hew, President and Chief Executive Officer of CUC commented "We
are pleased to have been able to complete this offering with the support of
our existing Class A Ordinary shareholders, including the standby commitment
made by Fortis Bermuda". He added, "This commitment by our shareholders
provides the strong financial base necessary to carry out required capital
investment plans. The proceeds of this offering will allow us to fulfill our
obligations under our recently signed licences, by expanding capacity and
sustaining reliability of electricity service in Grand Cayman.

    CUC provides electricity to Grand Cayman, Cayman Islands, under an
Electricity Generation Licence expiring in 2029 and an exclusive Electricity
Transmission and Distribution Licence expiring in 2028. Further information is
available at

    Caribbean Utilities Company, Ltd. ("CUC" or "the Company"), on occasion,
includes forward-looking statements in its media releases, Canadian securities
regulatory authorities filings, shareholder reports and other communications.
Forward-looking statements include statements that are predictive in nature,
depend upon 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 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

    %SEDAR: 00002251E

For further information:

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

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