Stock exchange release

Redemption concerning the shares of Fortum Espoo Oyj in accordance with chapter 14 section 19 of the

28 June 2006, 14:01 EEST

FORTUM CORPORATION STOCK EXCHANGE RELEASE 28 June 2006

Redemption concerning the shares of Fortum Espoo Oyj in accordance with chapter 14 section 19 of the companies act Fortum Corporation (Fortum) has notified Fortum Espoo Oyj (Fortum Espoo) of Fortum's ownership in Fortum Espoo having exceeded the threshold of nine-tenths (9/10) as set forth in Chapter 14, Section 19 of the Companies Act. Notice of redemption In accordance with Chapter 14, Section 19 of the Companies Act, Fortum has on 26 June 2006 given a notification to Fortum Espoo according to which Fortum's holding in Fortum Espoo exceeds nine tenths (9/10) of the shares and votes in Fortum Espoo. As a result, Fortum has the right to redeem the shares of the other shareholders in Fortum Espoo under Chapter 14, Section 19 of the Companies Act. Fortum's current holding in Fortum Espoo is 15,598,424 shares corresponding to 99,8 percent of shares and votes in Fortum Espoo. Claim for redemption Fortum has today notified Fortum Espoo of its decision to use its redemption right under Chapter 14, Section 19 of the Companies Act. Fortum presents the redemption claim for the shares of the other shareholders of Fortum Espoo on the following conditions: Redemption price The redemption price is EUR 68.36 per each share in Fortum Espoo. The redemption price shall in Fortum's view be considered as the fair price of the shares for purposes of Chapter 14, Section 19 of the Companies Act. If the General Meeting of Shareholders of Fortum Espoo will resolve on distribution of dividend or other assets after presenting of this redemption claim, such dividend or other distribution per share shall be deducted from the redemption price. Trustee Fortum Espoo is under Chapter 14, Section 20 of the Companies Act obliged to apply to Espoo District Court for an appointment of a trustee to look after the interests of absent shareholders during the redemption procedure. According to Chapter 14, Section 20 of the Companies Act Fortum may, no earlier than six (6) months from the notification of the redemption claim, agree on the terms of redemption with the trustee if the shareholder has not notified the company or the trustee that he objects to the said agreement and if no dispute exists between Fortum and another shareholder about the right of redemption or the redemption price. Arbitration proceedings Without further delay, Fortum will initiate arbitration proceedings, in accordance with Chapter 14, Section 19 and Chapter 16, Section 5 of the Companies Act, in order to redeem all shares in Fortum Espoo. Redemption offer under the Securities Markets Act Fortum has also become liable to make a mandatory redemption offer under Chapter 6, Section 6 of the Securities Markets Act to the other shareholders of Fortum Espoo. The mandatory redemption offer will be published on or about 30 June 2006. Fortum Corporation Carola Teir-Lehtinen SVP, Corporate Communications For more information: SVP, Corporate Communications Carola Teir-Lehtinen, tel. +358 50 542 4118 CFO Juha Laaksonen, tel. +358 50 452 4519 Distribution: Helsinki Stock Exchange Key Media