New unit inaugurated at Fortum's Tyumen power plant in Russia

A new unit was inaugurated today at Fortum's combined heat and power (CHP)
plant Tyumen CHP-1 in the city of Tyumen in Western Siberia. The new unit is
the first of seven units in Fortum's extensive investment programme in Russia;
the unit will begin commercial operation during the first half of next year.

The new unit is natural gas-fired, combined-cycle gas turbine plant. It has a
production capacity of 230 megawatts (MW) electricity and 293 MW heat. The unit
will boost the plant's total electricity production capacity to 662 MW and its
heat production capacity to 1,640 MW. As part of the Russian investment
programme, two more units, each with an electricity production capacity of 225
MW, will be constructed for the Tyumen CHP-1 plant. They are estimated to be
completed in 2014.

The new unit provides clear environmental benefits

Combined-cycle gas turbine plants represent the best available technology in
gas-fired power production.The energy efficiency of the new unit is over 85%
while the efficiency of the existing units is approximately 60%. Compared with
the current energy production in the Tyumen area, carbon dioxide emissions will
reduce by 400 000 tonnes annually.

”This is a very significant day for us, as we inaugurated the first unit of our
investment programme. It will add new production capacity needed by West
Siberia's gas and oil industry and will help us improve the efficiency of our
energy production in Tyumen,” says Fortum's President and CEO Tapio Kuula. ”We
will continue to build new capacity in the Ural and West Siberia regions
through our extensive investment programme. Russia is an important home market
for Fortum, and we want to participate in the development of the power and heat
markets together with our Russian partners,” he summarizes.

Russia's first modern heat measurement system installed in Tyumen

Upgrading the district heat networks and improving the efficiency of heat
distribution is also a key component in improving energy efficiency in Russia.
In conjunction with the inauguration of the new unit, the first equipment
measuring the district heat feed and consumption was installed in Tyumen
between the trunk network owned by OAO Fortum and the city's distribution
network. Utilizing GPRS-data transfer, it is the first digitalised heat
measurement system in Russia. During 2011, there will be 159 similar units
installed in the city. These units will enable Fortum to pinpoint heat
distribution problem spots and thus reduce heat losses.

Fortum Corporation
Corporate Communications

Additional information:
Anne Brunila, Executive Vice President, Corporate Relations and Sustainability,
Fortum, tel. +358 40 081 3952

Background: Tyumen region
The Tyumen region is the centre of Russian gas and oil production and the
wealthiest region after Moscow. More than 600,000 people live in the city of
Tyumen. Because of its energy production-focussed industry, the area saw
minimal decreases in electricity consumption during the recession, compared to
significant decreases elsewhere in Russia. Fortum has three combined heat and
power plants in the area, two of them are in the city of Tyumen and one in the
nearby city of Tobolsk. In 2009 two-thirds of the electricity OAO Fortum
produced was sold in the Tyumen region.

Background: Tyumen CHP-1 power plant
The natural gas-fired Tyumen CHP-1 was commissioned in 1960. The power plant's
production capacity was increased to 450 MW in 1972, and it became the most
important energy source for the oil fields in the area. In February 2004,
Russia's first combined-cycle gas turbine plantwas commissioned at Tyumen
CHP-1, raising the capacity to 472 MW. Despite its age, the plant remains one
of Russia's most modern power plants. Over the course of fifty years, Tyumen
CHP-1 has produced a total of 109 terawatt-hours (TWh) electricity and 151 TWh
heat.

Background: Fortum's investment programme
Fortum's subsidiary OAO Fortum, operating in Russia, has committed to
implementing an investment programme that will increase its electricity
production capacity from the current approximately 2,800 MW to about 5,100 MW.
The investment programme consists of seven new units, which Fortum plans to
commission by the end of 2014. The first three units are estimated to be ready
for production in the first half of 2011; the unit being completed at the
Tyumen CHP-1 plant is the first of them.

For Fortum, the new capacity is a key driver for solid earnings growth in
Russia as it will bring income from new volumes sold and is expected to receive
at least a 3-4 times higher price in the capacity market than the old capacity
received. The value of the remaining part of the investment programme,
calculated at the end of September 2010 exchange rates, is estimated to be EUR
1.7 billion from October 2010 onwards.

Fortum in brief
Fortum's purpose is to create energy that improves life for present and future
generations. We provide sustainable solutions that fulfil the needs for low
emissions, resource efficiency and energy security, and deliver excellent value
to our shareholders. Our activities cover the generation, distribution and sale
of electricity and heat as well as expert services for the energy industry.

Fortum's operations focus on the Nordic countries, Russia and Baltic Rim area.
The competitive energy markets in the fast-growing European and Asian economies
also offer growth opportunities in the future. In 2009 Fortum's sales totalled
EUR 5.4 billion and operating profit was EUR 1.8 billion. The Group employs
approximately 11,000 people. Fortum's shares are quoted on NASDAQ OMX Helsinki.

For more information: www.fortum.com

Images from Tyumen (link available to 18 January 2011)