Stock exchange release

Joint Implementation in TGC-10 yields Fortum 1.5 million tonnes of CO2 emission reduction units

30 September 2008, 09:00 EEST

Fortum Corporation Stock exchange release 30 September 2008, 9.00 EET

Joint Implementation in TGC-10 yields Fortum 1.5 million tonnes of CO2 emission 
reduction units                                                                 

Fortum will gain approximately 1.5 million tonnes of emission reduction units   
(ERU) from Joint Implementation projects conducted at the Russian Territorial   
Generating Company No. 10 (TGC-10). The projects TGC-10 will implement include  
construction of new power generation facilities in the Tyumen and Chelyabinsk   
areas, and they will be conducted during the Kyoto Period (2008-2012) of the    
European Emissions Trading Scheme.                                              

Fortum can use the received ERUs to cover part of its own emissions in the EU   
area once these projects are completed and their emission reduction has been    
verified. The ERUs will cover approximately 14% of Fortum's annual CO2 emissions
in the EU area and their value is approximately EUR 30 million based on the     
current market price of Certified Emission Reductions originating from          
developing countries. Energy Carbon Project (ECP) will act as the consultant    
responsible for developing the Joint Implementation projects.                   

“The Kyoto mechanism enables companies to reduce emissions where it is most     
economical and efficient. In the EU, Fortum's power generation is already       
approximately 90% CO2-free. In Russia, the average age of power generation      
capacity is rather high. Construction of new modern power generation facilities 
with low specific emissions leads to lower emissions in comparison to the use of
old inefficient capacity,” says Tapio Kuula, Senior Vice President at Fortum.   

TGC-10 is a territorial generating company operating in the Urals and Western   
Siberia regions. The company was founded in 2006 as part of the Russian power   
sector reform. The total installed capacity of TGC-10 and its affiliates is     
3,000 MW of electricity and 15,800 MW of heat with annual production of 18 TWh  
of electricity and 27 of TWh heat. The company has an extensive investment plan 
to further increase its electricity production capacity with 2,300 MW by 2013.  

Fortum Corporation                                                              
Maria Romantschuk                                                               
SVP, Communications                                                             

Further information:                                                            
Pirja Heiskanen, Vice President, TGC-10, Production Portfolio Management and    
Trading, tel. +358 50 45 36314

OMX Nordic Exchange Helsinki                                                    
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