CLARIFICATION TO FORTUM'S INTERIM REPORT

Fortum Corporation STOCK EXCHANGE RELEASE 21 October 2004


CLARIFICATION TO FORTUM'S INTERIM REPORT

The attachment to the Interim Report published today at 9 a.m.
(GMT +2) contained a rounding error compared to the Report.

In the income statement, profit before taxes for the third quarter
2004 is EUR 289 million as stated in the Interim Report and not
EUR 288 million as stated in the attachment.

The deviation does not have any impact on the key figures in the
Interim Report.

The corrected attachment is enclosed in full.

Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications

Distribution:
Helsinki Exchanges
Key media


FORTUM GROUP
JANUARY-SEPTEMBER 2004
Interim financial statements are unaudited

CONSOLIDATED INCOME STATEMENT
MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003
Last
twelve
months
Net sales 2 837 2 527 8 490 8 555 11 392 11
327
Share of profits of associated
companies 24 9 51 29 41
63
Other operating income 16 19 98 95 151
154
Materials and services -2 107 -1 883 -5 860 -6 264 -8 054 -7
650
Personnel expenses -158 -145 -511 -499 -654
-666
Depreciation, amortisation and
write-downs -120 -128 -372 -395 -538 -515
0
Other operating expenses -147 -160 -546 -521 -918
-943
Operating profit 345 239 1 350 1 000 1 420 1
770
Financial income and expenses -56 -54 -199 -189 -236
-246
Profit before taxes 289 185 1 151 811 1 184 1
524
Income taxes -66 -45 -259 -212 -325
-372
Minority interests 5 -10 -15 -57 -90
-48
Net profit for the period 228 130 877 542 769 1
104

Earnings per share, EUR 0.27 0.15 1.03 0.64 0.91
1.30
Fully diluted earnings per share, EUR 0.26 0.15 1.01 0.63 0.90
Average number of shares, 1,000 shares 849 823 845 836 846 831 848
540
Diluted adjusted average number of
shares, 1000 shares 870 806 857 249 858 732
CONSOLIDATED BALANCE SHEET


MEUR Sep 30 Sep 30 Dec 31
2004 2003 2330
ASSETS
Fixed assets and other long-term
investments
Intangible assets 112 151 146
Property, plant and equipment 11 681 11 681 11 632
Other long-term investments 1 839 1 714 1 762
Other interest-bearing long-term
investments 716 643 632
Total 14 348 14 189 14 172
Current assets
Inventories 705 541 551
Trade receivables 875 846 951
Short-term receivables 341 311 449
Cash and cash equivalents 222 277 439
Total 2 143 1 975 2 390
Total 16 491 16 164 16 562

SHAREHOLDERS' EQUITY AND LIABILITIES

Shareholders' equity
Share capital 2 891 2 876 2 886
Other equity 4 065 3 297 3 520
Total 6 956 6 173 6 406
Minority interests 245 1 449 232
Provisions for liabilities and
charges 223 187 207
Deferred tax liabilities 1 804 1 803 1 843
Liabilities
Long term liabilities
Interest-bearing 4 289 3 504 4 840
Interest free 359 340 346
Short term liabilities
Interest-bearing 1 162 1 192 1 225
Interest free 1 453 1 516 1 463
Total 16 491 16 164 16 562

Equity per share, EUR 8.18 7.30 7.55
Number of shares, 1,000 shares 850 262 845 898 848 832

CHANGE IN SHAREHOLDERS' EQUITY

MEUR Jan-Sep 30 Jan-Sep 30 Dec 31
2004 2003 2003

Shareholders' equity, 1 January 6 406 5 897 5 897
Stock options exercised 14 1 22
Dividend -359 -264 -264
Translation differencies 18 -3 -18
Net earnings for the period 877 542 769
Total 6 956 6 173 6 406

CASH FLOW STATEMENT
Jan-Sep 30 Jan-Sep 30 Dec 31
MEUR 2004 2003 2003

Net cash from operating activities 1 299 1 381 1 577
Capital expenditures -399 -370 -550
Acquisition of shares -108 -504 -570
Proceeds from sales of fixed
assets 34 101 142
Proceeds from sales of shares 16 1 221 1 227
Change in other investments -97 -53 -67
Cash flow before financing activitie 745 1 776 1 759
Net change in loans -612 -1 791 -399
Dividends paid -359 -264 -264
Other financing items * 8 -40 -1 245
Net cash from financing activities -963 -2 095 -1 908
Net increase (+)/decrease (-) in cash
and marketable securities -218 -319 -149

* Includes the redemption of Fortum Capital Ltd preference shares -1 200 million
euros in December 2003

KEY RATIOS
Sep 30 Sep 30 Dec 31 Last twelve
2004 2003 2003 months

Capital employed, MEUR 12 652 12 773 12 704
Interest-bearing net debt, MEUR* 5 229 4 420 5 626
Investments, MEUR 507 889 1 136 754
Return on capital employed, % 14.5 10.6 11.4 14.2
Return on shareholders' equity, %* 17.1 10.5 12.3 15.4
Interest coverage 7.5 5.1 5.8 7.8
FFO / interest-bearing net debt, % 1) 34.4 35.3 26.1
Gearing, % * 73 58 85
Equity-to-assets ratio, % 44 47 40
Average number of employees 13 112 13 594 13 343

1) FFO = Funds from operations
* Figures include the effect of the redemption of Fortum Capital Ltd preference
shares in December 2003.

NET SALES BY SEGMENTS

MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 453 524 1 505 2 057 2 681 2 129
Heat 145 132 701 672 964 993
Distribution 150 143 513 502 688 699
Markets 287 322 1 009 1 212 1 634 1 431
Oil Refining 1 641 1 349 4 579 4 311 5 693 5 961
Oil Retail 666 543 1 763 1 650 2 203 2 316
Shipping and other Oil 69 62 248 243 308 313
Other 23 24 67 68 93 92
Eliminations -597 -572 -1 895 -2 160 -2 872 -2 607
Total 2 837 2 527 8 490 8 555 11 392 11 327

OPERATING PROFIT BY SEGMENTS

MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 124 82 490 410 603 683
Heat 8 -6 142 93 173 222
Distribution 55 47 196 189 247 254
Markets 11 13 26 18 35 43
Oil Refining 131 89 411 224 281 468
Oil Retail 15 21 41 46 44 39
Shipping and other Oil 16 9 83 55 79 107
Other -15 -16 -39 -35 -42 -46
Total 345 239 1 350 1 000 1 420 1 770

NON-RECURRING ITEMS IN OPERATING PROFIT BY SEGMENTS

MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation -2 3 20 2 4 22
Heat - -4 - -4 -3 -3
Distribution 1 -1 1 20 20 1
Markets - - - - - -
Oil Refining 31 14 96 - 14 110
Oil Retail 2) -1 - 5 1 -9 -5
Shipping and other Oil 2) - 1 4 -2 10 16
Other -2 -5 -2 9 24 15
Total 27 8 124 26 60 158

2) Split between segments corrected in 2003 figures

DEPRECIATION, AMORTISATION AND WRITE-DOWNS BY SEGMENTS

MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 20 27 76 87 116 105
Heat 30 29 91 85 116 122
¨
Distribution 33 35 99 110 143 132
Markets 4 3 12 10 14 16
Oil Refining 19 20 56 59 80 77
Oil Retail 7 8 22 23 41 40
Shipping and other Oil 3 4 8 12 14 10
Other 4 2 8 9 14 13
Total 120 128 372 395 538 515

INVESTMENTS BY SEGMENTS

MEUR Q3/04 Q3/03 Q1-Q3/04 Q1-Q3/03 2003 Last twelve
months
Power Generation 93 23 155 351 386 190
Heat 30 37 80 113 158 125
Distribution 25 17 65 241 339 163
Markets 2 - 4 26 28 6
Oil Refining 44 16 111 60 97 148
Oil Retail 10 8 21 21 36 36
Shipping and other Oil 21 23 61 64 71 68
Other 4 4 10 13 21 18
Total 229 128 507 889 1 136 754

NET ASSETS BY SEGMENTS

MEUR Sep 30 Sep 30 Dec 31
2004 2003 2003
Power Generation 6 236 6 391 6 391
Heat 2 424 2 342 2 466
Distribution 3 088 3 089 3 129
Markets 139 57 23
Oil Refining 1 199 1 052 1 003
Oil Retail 328 329 329
Shipping and other Oil 184 150 133
Other 53 58 45
Eliminations -8 -9 -8
Total 13 643 13 459 13 511

RETURN ON NET ASSETS BY SEGMENTS 3)

% Sep 30 Sep 30 Sep 30 Sep 30 Dec 31 Dec 31 Last
Last
2004 2004*) 2003 2003*) 2003 2003*) twelve twelve
months months*)
Power Generation 10.5 10.0 8.6 8.5 9.5 9.4 10.9
10.5
Heat 7.8 7.8 5.3 5.5 7.3 7.5 9.2
9.2
Distribution 8.4 8.4 8.1 7.2 7.9 7.2 8.2
8.2
Markets 28.0 28.0 32.7 32.7 55.2 55.2 38.9
38.9
Oil Refining 49.6 38.0 27.4 27.4 26.2 24.9 42.8
32.7
Oil Retail 18.0 15.8 19.4 19.0 13.8 16.6 12.6
14.2
Shipping and other Oil 69.5 66.1 52.0 53.9 56.7 49.5 68.0
57.8

*) Non-recurring items deducted from operating profit
2) December 31 2003*) figures changed due to corrections in non-recurring items.
3) Return on net assets, % = Operating profit/average net assets

CONTINGENT LIABILITIES

MEUR Sep 30 Sep 30 Dec 31
2004 2003 2003
Contingent liabilities
On own behalf
For debt
Pledges 163 525 149
Real estate mortgages 92 237 91
For other commitments
Real estate mortgages 57 54 55
Pledges, company and other mortgages 1 1 -
Sale and leaseback 8 9 8
Other contingent liabilities 78 96 101
Total 399 922 404
On behalf of associated companies
Pledges and real estate mortgages 11 12 12
Guarantees 357 597 562
Other contingent liabilities 182 182 182
Total 550 791 756
On behalf of others
Guarantees 4 15 15
Other contingent liabilities 6 5 7
Total 10 20 22
Total 959 1 733 1 182
Operating lease liabilities
Due within a year 66 55 75
Due after a year 105 108 103
Total 171 163 178

Liability for nuclear waste disposal 570 545 570
Share of reserves in the Nuclear Waste
Disposal Fund -560 -535 -560
Liabilities in the balance sheet 4) 10 10 10

4) Mortgaged bearer papers as security

In addition to other contingent liabilities a guarantee has been given on
behalf
of Gasum Oy, which covers 75% of the natural gas commitments arising from the
natural gas supply agreement between Gasum and OOO Gazexport.

Derivatives Sep 30 2004 Sep 30
2003 Dec 31 2003

6) 7) 8) 6) 7) 8) 6) 7) 8)
MEUR
Forward rate agreements 221 -1 -1 335 - - 330 -
-
Interest rate swaps 3 843 -50 -38 5 784 9 16 4 253 -97
-69
Forward foreign exchange
contracts 5) 7 466 -38 -1 7 866 -54 33 8 396 129 49
Currency swaps 323 -3 -1 347 13 5 333 -3
1
Purchased currency
options 525 -9 -9 32 4 4 - - -
Written currency options 525 3 3 15 - - - -
-

5) Incl. also contracts used for equity hedging

6) Contract or notional value
7) Fair value
8) Not recognised as an income

Oil futures and forward
instruments
Sep 30 2004 Sep 30
2003 Dec 31 2003

9) 10) 11) 9) 10) 11) 9) 10) 11)
1000 MEUR MEUR 1000 MEUR MEUR 1000 MEUR
MEUR
bbl bbl bbl
Sales contracts 16 010 -19 -19 11 345 -3 -3 22 304 -11
-11
Purchase contracts 59 825 48 48 26 398 7 7 37 239 14
14
Purchased options 13 495 9 9 100 - - 150 -
-
Written options 13 993 -8 -8 100 - - 600 -
-

9) Volume
10) Fair value
11) Not recognised as an income

Electricity derivatives
Sep 30 2004 Sep 30 2003 Dec 31 2003

9) 10) 11) 9) 10) 11) 9) 10) 11)

TWh MEUR MEUR TWh MEUR MEUR TWh MEUR MEUR
Sales contracts 74 -93 -11 58 -349 -218 58 -100 -65
Purchase contracts 42 125 39 57 308 176 50 136 101
Purchased options 1 - - 1 -1 -2 - - -
Written options - - - 3 -4 -3 - - -


Natural gas derivatives
Sep 30 2004 Sep 30 2003 Dec 31 2003

9) 10) 11) 9) 10) 11) 9) 10) 11)
Mill. MEUR MEUR Mill. MEUR MEUR Mill. MEUR
MEUR
th. th. th.
Sales contracts - - - 2 543 36 - 8 - -
Purchase contracts - - - 2 543 -34 - 8 - -
Purchased options - - - 709 1 - - - -
Written options - - - 709 -3 - - - -

The fair values of derivative contracts subject to public trading are based on
market prices as of the balance sheet date. The fair values of other derivatives
are based on the present value of cash flows resulting from the contracts, and,
in respect of options, on evaluation models. The amounts also include unsettled
closed positions. Derivative contracts are mainly used to manage the group's
currency, interest rate and price risk.

QUARTERLY NET SALES BY SEGMENTS

MEUR Q3/04 Q2/04 Q1/04 Q4/03 Q3/03 Q2/03 Q1/03

Power Generation 453 488 564 624 524 573 960
Heat 145 195 361 292 132 182 358
Distribution 150 157 206 186 143 160 199
Markets 287 303 419 422 322 332 558
Oil Refining 1 641 1 635 1 303 1 382 1 349 1 265 1 697
Oil Retail 666 566 531 553 543 521 586
Shipping and other Oil 69 78 101 65 62 87 94
Other 23 24 20 25 24 22 22
Eliminations -597 -616 -682 -712 -572 -707 -881
Total 2 837 2 830 2 823 2 837 2 527 2 435 3 593

QUARTERLY OPERATING PROFIT BY SEGMENTS

MEUR Q3/04 Q2/04 Q1/04 Q4/03 Q3/03 Q2/03 Q1/03
Power Generation 124 138 228 193 82 116 212
Heat 8 27 107 80 -6 22 77
Distribution 55 54 87 58 47 61 81
Markets 11 5 10 17 13 12 -7
Oil Refining 131 187 93 57 89 51 84
Oil Retail 15 20 6 -2 21 10 15
Shipping and other Oil 16 23 44 24 9 19 27
Other -15 -11 -13 -7 -16 -5 -14
Total 345 443 562 420 239 286 475