Stock exchange release

Fortum and Hafslund Infratek to combine their infrastructure operations

24 October 2008, 09:43 EEST

Fortum Corporation Stock Exchange Release 24 October 2008 at 9.00 EET

Fortum and Hafslund Infratek to combine their infrastructure operations        

Fortum receives 33 % stake in the new combined company                          

Fortum and (Norwegian) Hafslund Infratek ASA have signed a contract according to
which they will combine their businesses of construction and operating of       
infrastructure in Sweden, Finland and Norway at the beginning of 2009. Fortum   
will receive newly issued shares in Hafslund Infratek ASA and 33% ownership in  
the new combined company. Hafslund ASA, currently the majority shareholder of   
Hafslund Infratek, will hold 43.3% of the shares. The remaining shares are owned
by institutional and private shareholders.                                      

As part of the transaction Fortum Distribution will outsource its in-house      
network construction activities in Värmland/Skaraborg and West-Coast in Sweden. 
Furthermore, Distribution is planning to outsource the remaining network        
construction areas in Gävleborg/Dalarna and Stockholm.                          

Significant growth within the field of building and operating energy related    
infrastructure demands larger and more efficient suppliers. Joining forces will 
enable Hafslund Infratek better possibilities to grow and compete in the        

The Fortum operations that will be combined with Hafslund Infratek generated    
sales of approximately EUR 130 million for the first nine months of 2008, and   
the operating profit was approximately EUR 5 million. The operations in the     
scope have mainly been reported in the Power Generation segment.                

The transaction concerns some 1,000 Fortum Service employees who will move over 
to the new combined company, approximately 700 in Sweden, 150 in Finland and 150
in Norway. In Fortum Distribution, the transaction concerns some 140 employees  
in Sweden.                                                                      

The new combined company will be a leading Nordic infrastructure service        
supplier. It provides services within the fields of building, operating and     
securing critical infrastructure, primarily energy carriers, telecom and        
security systems. It employs 2,500 people in Norway, Sweden and Finland.        

A letter of intent to this agreement was signed in June. The final agreement is 
subject to approval by the Board of Directors of Fortum Corporation prior to an 
Extraordinary General Meeting of Hafslund Infratek ASA. The transaction is to   
become effective as of 1 January 2009.                                          

Fortum Corporation                                                              
Maria Romantschuk                                                               
SVP Corporate Communications                                                    

Further information:                                                            
Markku Vauhkonen, President, Fortum Service, tel. +358 40 352 3322              
Håkan Grefberg, President, Fortum Distribution, tel. + 46 70 683 07 00