FORTUM AND THE CITY OF STOCKHOLM FINALISED BIRKA TRANSACTION

Today, Fortum and the City of Stockholm concluded the deal
regarding the sale of the City's 50% shareholding in Swedish
energy company Birka Energi AB. The transaction was announced on
6 November 2001.
 
Birka Energy Group will be 100 per cent consolidated into
Fortum Group as of 1st March 2002.
 
Together Fortum and Birka will be the second largest energy
company in the Nordic market.
 
 
 
Attachment: 2001 Pro forma income statement, balance sheet and key
figures for Fortum / Birka.
 
 
Fortum Corporation
 
 
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications
 
Distribution:
Helsinki Exchanges
Key media
 
 
 
For further information, please contact:
Tapio Kuula, President, Power and Heat Sector, tel. +358-10 452 4112
 
 
 
 
 
The pro forma information has been compiled as if the acquisition of
the additional 50% interest in Birka Energi had taken place on 1 January
2001. The pro forma information has been given solely for illustrative
purposes and due to its nature does not as such provide a true picture
of the Group's financial position or results. The pro forma information
is based on audited information on the Fortum Group and Birka Energi
Group and on unaudited adjustments relating directly to the transaction
to be explained and to the adjustments of Birka Energi financials to
conform to Fortum's accounting standards. The adjustments do not include
potential synergy benefits, savings or expenses.
 
 
PRO FORMA INCOME STATEMENT 1 JAN - 31 DEC 2001
(unaudited)
                                       Fortum   Birka   Adjust-  Fortum
                                        Group  Energi   ments   Pro Forma
                                                Group     1)
EUR million                                     (50%)
 
 
Net sales                               10,410     747      -38  11,119
Expenses                                -8,873    -484       67  -9,290
Depreciation                              -623    -108      -22    -753
 
 
Operating profit                           914     155        7   1 076
Financial income and expenses             -212     -88      -98    -398
 
 
Profit before taxes                        702      67      -91     678
Income taxes                              -160     -22       26    -156
Minority interests                         -83       0      -11     -94
 
 
Net profit for the period                  459      45      -76     428
 
 
Earnings per share, EUR                   0.57                     0.54
 
 
1) Effects of the Birka acquisition (amortisation of goodwill,
interest expenses, minority interest in Birka Värme) and
adjustments of Birka financials to Fortum's accounting standards
 
 
PRO FORMA BALANCE SHEET 31 DEC 2001
(unaudited)
                                        Fortum   Birka  Adjust-  Fortum
                                         Group  Energi    ments  Pro Forma
                                                 Group      2)
EUR million                                      (50%)
 
 
ASSETS
 
Fixed assets and other long-term
investments                                                        11,328   3,558      536  15,422
 
Current assets
    Inventories and receivables          2,364     282       -4   2,642
    Cash and cash equivalents              602      29      108     739
    Total                                2,966     311      104   3,381
 
 
Total                                   14,294   3,869      640  18,803
 
 
SHAREHOLDERS' EQUITY AND LIABILITIES
 
Shareholders' equity                     5,485   1,290   -1,290   5,485
Minority interests                       1,270      53      108   1,431
Interest-bearing liabilities             4,276   1,739    1,781   7,796
Interest-free liabilities                3,263     787       41   4,091
 
 
Total                                   14,294   3,869      640  18,803
 
 
2) Effects of the Birka acquisition (acquisition debt, goodwill, minority
interest in Birka Värme) and adjustments of Birka financials to Fortum's
accounting standards
 
 
PRO FORMA KEY FIGURES 31 DEC 2001
(unaudited)
                                        Fortum   Birka  Adjust-   Fortum
                                         Group  Energi   ments  Pro Forma
                                                 Group      3)
                                                 (50%)
 
 
Number of employees                     13,425   1,790           15,215
 
Interest-bearing net debt, EUR mill.     3,674   1,710    1,673   7,057
Gearing, %                                  54                      102
 
 
3) Effects of the Birka acquisition and adjustments of Birka financials to
Fortum's accounting standards
 
 
 
PRO FORMA INFORMATION BY SEGMENT 1 JAN - 31 DEC 2001
(unaudited)
 
Net sales                                                        Fortum
                                                               Pro Forma
 
EUR million
 
 
Power, Heat and Gas                                               2,677
Electricity Distribution                                            696
Oil Refining and Marketing                                        7,223
Oil and Gas Upstream                                                408
Fortum Energy Solutions                                             725
Other Operations                                                     95
Eliminations                                                       -705
 
 
Net sales                                                        11,119
 
 
 
 
 
Operating profit                                                 Fortum
                                                               Pro Forma
 
EUR million
 
 
Power, Heat and Gas                                                 449
Electricity Distribution                                            211
Oil Refining and Marketing                                          242
Oil and Gas Upstream                                                196
Fortum Energy Solutions                                              17
Other Operations                                                    -40
Eliminations                                                          1
 
 
Operating profit                                                  1,076
 
 
 
 
 
FORTUM VOLUME AND CAPACITY DATA 2001
(Incl Birka 100 %)
                                                        Nordic   Total
                                                      countries
 
 
Power generation capacity (MW)                           11,551  12,625
Electricity generation output (TWh)                        52.1    57.7
Electricity sales (TWh)                                    58.5    65.1
Heat generation capacity (MW)                             7,854   8,581
District heat sales (TWh)                                  14.2    14.5
Process steam sales (TWh)                                   6.0     7.5
Distribution customers ('000)                             1,177   1,357
Retail customers ('000)                                   1,154   1,326