May 8, 2008

Dear Unitil Corporation Shareholder:

Unitil earned $0.57 per share in the first quarter of 2008, an increase of $0.11 over the first quarter of 2007. This result was driven by higher gas sales margin and lower operating expenses, including the benefit of an insurance settlement associated with environmental remediation costs. Gas and electric sales declined for the quarter, due to milder weather and decreased use per customer reflecting a slowing economy and energy conservation.

We continue our progress towards the acquisition of Northern Utilities and Granite State Gas Transmis-sion. In February we announced our agreement to acquire these companies from NiSource, Inc., for $160 million plus working capital. On March 31, we filed regulatory petitions in both New Hampshire and Maine. Regulatory proceedings have commenced in both states, with approvals expected within six months. In addition, we have assembled inter-company transition teams covering all key functional areas. These teams are well on the way to completing the comprehensive transition plans necessary for the orderly transfer of management responsibilities to Unitil in the fourth quarter of 2008.

I am pleased to report that shareholders re-elected Robert V. Antonucci, David P. Brownell, Albert H. Elfner, III, Michael B. Green, and M. Brian O'Shaughnessy to the Board of Directors for three-year terms at the Annual Meeting on April 17.

Also in the first quarter, the Unitil Corporation Board of Directors declared the regular quarterly dividend on the Company's common stock of $0.345 per share. This quarterly dividend results in a current effec-tive annual dividend rate of $1.38 per share, representing an unbroken record of quarterly dividend payments since trading began in Unitil's common stock 23 years ago.

It is with sadness that we also report the loss of one of Unitil's founders, Charles H. Tenney II, on April 10, 2008. Mr. Tenney served on the boards of Unitil's three predecessor companies, and later as Chairman of the boards of those companies. He was Chairman of the Board and CEO of Unitil Corporation from 1984 until 1992. Charlie will be remembered for his wonderful sense of humor; his strong management principles; his dedication to providing quality, economical service to customers and protection and enhancement of shareholder investments; and his profound respect for all employees and co-workers. He will be deeply missed.

Conclusion: We anticipate another full and exciting year in 2008. I look forward to reporting on our progress later in the year.

Sincerely,

Robert G. Schoenberger
Chairman of the Board of Directors
President & Chief Executive Officer