Stock exchange release


08 May 2007, 10:34 EEST

At its extraordinary shareholders meeting on April 28, 2007, Russian Territorial Generating Company 1 (TGC-1) decided on a share issue. TGC-1's Board of Directors has today confirmed the decision. The total maximum amount of new shares is 1,875,228,129,448.

The share offering aims at increasing the share capital of TGC-1 by             
approximately 32.4 billion rubles (about 930 million euro). Fortum´s target is  
to maintain its current, slightly over 25% stake in the company. Fortum is thus 
preparing for acquisition of the corresponding amount of new shares.            

The planned use of the new capital is financing the company´s investment program
to increase production capacity.                                                

TGC-1 in North-West Russia was founded in 2006 as part of the Russian power     
sector reform. The company operates in a large area, from St. Petersburg to the 
Kola Peninsula. The production capacity of TGC-1 is about 6,000 MW power and    
about 17,000 MW heat. With its slightly over 25% stake, Fortum is the second    
largest shareholder of the company.                                             

Fortum still owns about one third of the electricity distribution company       
Lenenergo in St. Petersburg.                                                    

Fortum Corporation                                                              
Carola Teir-Lehtinen                                                            
SVP, Corporate Communications                                                   

Further information:                                                            
Kari Kautinen, Vice President, Fortum Corporation, tel . +358 50 453 2174       

Helsinki Stock Exchange                                                         
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