Breakthrough for Fortum in Norway and Russia

Fortum Corporation STOCK EXCHANGE RELEASE
31 January 2003 at 13.45 p.m. 1 (1)


BREAKTHROUGH FOR FORTUM IN NORWAY AND RUSSIA
- E.ON and Fortum swap assets worth nearly EUR 800 million

Fortum Oyj and E.ON AG have agreed on a swap of assets at a total
value of nearly EUR 800 million. The transactions will
substantially strengthen Fortum´s position in its focus area, the
Nordic countries and the Baltic rim.

Fortum will acquire 21.4 % of the shares in Hafslund ASA, the
second biggest electricity company in Norway with 600 000 sales
customers, 550 000 distribution customers and about 3 TWh of hydro
power production. In addition, Fortum will acquire all the shares
in Ostfold Energi Nett AS, Ostfold Energi Kraftsalg AS and Ostfold
Energi Entreprenor AS with a total of 95 000 sales and
distribution customers, and 49 % of Fredrikstads Energi AS with 80
000 customers. The Norwegian acquisitions also include some other
minority holdings.

Fortum will further acquire 9,3 % of the shares in AO Lenenergo,
the largest utility company in north-western Russia with some 1.3
million electricity customers and a production capacity of 14 TWh
of electricity and 26.3 TWh of heat. As a result, Fortum´s share
in Lenenergo will rise to 15.7 %.

Fortum will sell its power plants in Burghausen, Germany and
Edenderry, Ireland to E.ON. E.ON will also acquire the shares and
business of Fortum Distribution Småland AB, an electricity
distribution company in southern Sweden with some 43 000
customers.

To balance the swap, Fortum will pay a total consideration of EUR
150 million to E.ON. The asset swap will not have any significant
impact on Fortum’s income statement or balance sheet.

Fortum and E.ON have also agreed that Fortum will withdraw its
complaint against the permission of the E.ON and Ruhrgas merger.

The transactions are expected to be closed by April 1, pursuant to
authority approvals.

Fortum will arrange a press conference on the deal today at 2.30
p.m. at its Keilaniemi head office.

Fortum Corporation

Carola Teir-Lehtinen
Senior Vice President, Corporate Communications


Distribution:
Helsinki Exchanges
Key media


For further information, please contact:
Mikael Lilius, President and CEO, tel. +358 10 452 9100
Tapio Kuula, President, Power and Heat Sector, tel. +358 10 452
4112