Letter of intent on the restructuring Fortum's Naantali power plant's ownership in Finland

Fortum, Turun Seudun Maakaasu ja Energiantuotanto (TSME), Turun Seudun
Kaukolämpö and Turku Energia as well as the municipalities of Naantali, Raisio
and Kaarina have today signed a letter of intent on consolidating energy
production to one co-owned production company, TSME. According to the letter of
intent, Fortum will lease its Naantali power plant's production capacity to
TSME. The district heat produced will be sold to Turku Energia, the steam to
Fortum and the electricity to TSME shareholders, which - according to the
letter of intent - will be Fortum (50.5%), Turku Energia (38.5%), Raisio (5%),
Kaarina (3%) and Naantali (3%). The letter of intent includes an option for
TSME to buy the Naantali power plant from Fortum at a later date. The aim is to
reach a final decision on the restructuring during the first quarter of 2011,
in which case arrangement will be effective on 1 September 2011.

Currently, energy production in the Turku region is largely based on the heat
and electricity production of Fortum's Naantali coal-fired power plant. The
power plant annually produces about 1,000 gigawatt-hours (GWh) of electricity
for the Nordic market, about 600 GWh of steam for industrial customers, and
about 1,500 GWh of district heat for Turun Seudun Kaukolämpö Oy's heat
transmission network. The plant has been operating for 50 years, and its
renewal will become topical in the near future. According to the letter of
intent, TSME will be responsible for creating a new solution for the Turku area
energy production.

Fortum Corporation
Corporate Communications

Additional information:
Jouni Haikarainen, Vice President, Heat Division, Finland, tel. +358 40 709 5690