Fortum starts cooperation negotiations at Inkoo power plant

Fortum Corporation
Press release

Fortum starts cooperation negotiations at Inkoo power plant

Fortum is planning to transfer two out of four units at Inkoo coal-fired power
plant for extended start-up readiness. This is due to the decreasing demand of
coal condensing capacity now when economic recession has diminished the
electricity consumption and the electricity wholesale prices have gone down.
Maintaining the whole Inkoo power plant capacity in start-up readiness is not
economically feasible considering expected operation times and the age of the
power plant.

As a consequence of the eventual change applicable to the two units, the
personnel need is expected to reduce by a maximum of 60 positions and related
cooperation negotiations will be initiated. The power plant employs currently
125 persons. The cooperation negotiations will start on 11 May 2009 and will
last for a maximum of six weeks. The aim is to find alternative solutions to
maximum number of persons, such as retirements or positions in other Fortum
power plants.

The available production capacity of Inkoo power plant would eventually drop
from 1000 megawatts to 500 megawatts. The two remaining units will maintain
their roles as reserve capacity that can be started up in a reliable way.

The Inkoo power plant, constructed between 1974 - 1978, has acted during latest
years as a reserve power plant that has generated electricity during certain
consumption peaks such as during very cold weather. In 2008, only one of four
units has been in operation from time to time. This year, the power plant has
not been running except during test runs.

Fortum Oyj
Corporate Communication

Further information:

Matti Ruotsala, President, Fortum Generation, tel +358 10 452 1729