Stock exchange release

FORTUM'S DEFERRED TAX LIABILITIES WILL D

20 July 2004, 10:25 EEST

Fortum Corporation STOCK EXCHANGE RELEASE
20 July 2004 at 11.25 am 1(1)

FORTUM'S DEFERRED TAX LIABILITIES WILL DECREASE BY EUR 43 MILLION On June 30, 2004, the Finnish Parliament passed new tax laws that include, among other things, a reduction in the Finnish corporate income tax rate from 29 percent to 26 percent from the beginning of tax year 2005. As a result, the deferred tax liabilities of Fortum will decrease by approximately EUR 43 million net, based on preliminary analysis. The exact effect of the change in tax rate for 2004 can only be calculated at the end of the year. Fortum will book this preliminary amount in Q2 of 2004 as a tax reduction in the Income Statement and correspondingly as a reduction of deferred tax liabilities in the Balance Sheet. The change in deferred tax liabilities does not have any immediate cash flow effect. Fortum Corporation Carola Teir-Lehtinen Senior Vice President, Corporate Communications Further information: Marianne Aapro, Corporate Financial Controller, tel. +358 10 452 4838, gsm +358 50 452 4838 Distribution: Helsinki Exchanges Key media