Stock exchange release

A good year

05 February 2009, 09:00 EET

Fortum Corporation Financial statements release 2008 5 February 2009 at 9.00 EET

A good year                                                                     

- Comparable operating profit EUR 1,845 (1,564) million, +18%                   
- Earnings per share EUR 1.74  (EUR 1.74)                                       
- 92% (89%) of the generated power in the EU was CO2-free                       
- Strong balance sheet and liquidity position                                   
- Fortum has hedged 65% of its Nordic power sales for the rest of 2009 at EUR 53
per MWh                                                                         
- TGC-10 in Russia acquired                                                     
- Fortum's Board proposes a dividend of EUR 1.00 per share                      

--------------------------------------------------------------------------------
| Key figures                      |  IV/08  |  IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Sales, EUR million               |   1,602 |   1,320 |     5,636 |     4,479 |
--------------------------------------------------------------------------------
| Operating profit, EUR million    |     611 |     520 |     1,963 |     1,847 |
--------------------------------------------------------------------------------
| Comparable operating profit, EUR |     508 |     516 |     1,845 |     1,564 |
| million                          |         |         |           |           |
--------------------------------------------------------------------------------
| Profit before taxes, EUR million |     605 |     501 |     1,850 |     1,934 |
--------------------------------------------------------------------------------
| Earnings per share, EUR          |    0.64 |    0.41 |      1.74 |      1.74 |
--------------------------------------------------------------------------------
| Net cash from operating          |     562 |     345 |     2,002 |     1,670 |
| activities, EUR million          |         |         |           |           |
--------------------------------------------------------------------------------
| Shareholders' equity per share,  |         |         |      8.96 |      9.43 |
| EUR                              |         |         |           |           |
--------------------------------------------------------------------------------
| Interest-bearing net debt        |         |         |     6,179 |     4,466 |
| (at                              |         |         |           |           |
| end of period), EUR million      |         |         |           |           |
--------------------------------------------------------------------------------
| Average number of shares, 1,000s |         |         |   887,256 |   889,997 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Key financial ratios                   |      2008 |      2007 |       2007* |
--------------------------------------------------------------------------------
| Return on capital employed, %          |      15.0 |      16.5 |        14.0 |
--------------------------------------------------------------------------------
| Return on shareholders' equity, %      |      18.7 |      19.1 |        15.8 |
--------------------------------------------------------------------------------
| Net debt/EBITDA                        |       2.5 |       1.9 |         2.2 |
--------------------------------------------------------------------------------
*Adjusted for REC and Lenenergo gains                                           

The year 2008 was a year of big swings in power and fuel prices. In the first   
half of the year, commodity prices and wholesale power prices increased rapidly.
During the second half of the year, all fuel prices and also power prices in the
Nordic region declined significantly from the peaks in autumn.                  

In 2008, Fortum took a major strategic step in Russia through the acquisition of
Territorial Generating Company 10 (TGC-10). The acquisition gave Fortum a       
significant presence in Russia's fast-evolving power markets. The acquisition   
doubled Fortum's heat production capacity, increased power generation capacity  
by over 25% and added over 7,000 employees to Fortum.                           

Fortum's January-December comparable operating profit improved significantly    
from a year ago, driven by better results in the Power Generation segment.      
Fortum's consistent hedging strategy, higher average Nord Pool spot prices and  
higher hydro power volumes contributed to the improvement.                      

Fortum's earnings per share in 2008 were at the same level as a year ago,       
despite the higher amount of positive one-time items in 2007 earnings. In 2007, 
nonrecurring sales gains amounted to EUR 412 million (Hafslund's REC shares,    
Lenenergo), corresponding to EUR 0.46 per share. In 2008, sales gains and a     
positive one-time tax effect amounted to EUR 184 million in net earnings,       
corresponding to EUR 0.21 per share. The tax effect is due to the lowering of   
corporate tax rates in Sweden and Russia, leading to a reduction in deferred tax
liabilities.                                                                    

The decline in the Swedish currency especially during the last two months of the
year affected Fortum's operating profit negatively. The average SEK rate in 2008
declined by approximately 5% from 2007. The negative effect from the decline on 
the average SEK rate was approximately EUR 50 million in Fortum's 2008          
comparable operating profit. The effect mainly impacted fourth quarter earnings.

Fortum's net cash from operating activities remained strong at EUR 2,002 (1,670)
million.                                                                        

Liquidity remained strong with liquid funds amounting to EUR 1,321 million.     
Undrawn committed credit facilities were EUR 2.3 billion at the end of the year.

In the first quarter 2008, Fortum acquired a controlling stake in TGC-10. At the
end of December 2008, Fortum's ownership in TGC-10 was 93.4%. TGC-10 has been   
de-listed from the Russian MICEX and RTS stock exchanges because Fortum's       
ownership in the company has increased over the 90% threshold.                  

In October, Fortum estimated the value of TGC-10's capacity investment programme
to be approximately EUR 2.5 billion. The value for the remaining part of the    
programme, calculated at the current exchange rate, is estimated to be EUR 2.0  
billion from January 2009 onwards.                                              

In the fourth quarter, the Power Generation segment's achieved Nordic power     
price was EUR 49.1 (43.0) per megawatt-hour (MWh), up by 14% from the previous  
year. The average system spot price of electricity in Nord Pool was EUR 50.8    
(42.7) per MWh.                                                                 

Financial results                                                               

October - December                                                              

Group sales were EUR 1,602 (1,320) million. Group operating profit totalled EUR 
611 (520) million. Comparable operating profit totalled EUR 508 (516) million.  

Sales by segment                                                                
--------------------------------------------------------------------------------
| EUR million                    |   IV/08  |   IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Power Generation               |      736 |      685 |     2,892 |     2,350 |
--------------------------------------------------------------------------------
| Heat                           |      463 |      439 |     1,466 |     1,356 |
--------------------------------------------------------------------------------
| Distribution                   |      206 |      206 |       789 |       769 |
--------------------------------------------------------------------------------
| Markets                        |      531 |      482 |     1,922 |     1,683 |
--------------------------------------------------------------------------------
| Russia                         |      197 |        - |       489 |         - |
--------------------------------------------------------------------------------
| Other                          |       21 |       21 |        83 |        81 |
--------------------------------------------------------------------------------
| Netting of Nord Pool           |     -476 |     -437 |    -1,736 |    -1,163 |
| transactions                   |          |          |           |           |
--------------------------------------------------------------------------------
| Eliminations                   |      -76 |      -76 |      -269 |      -597 |
--------------------------------------------------------------------------------
| Total                          |    1,602 |    1,320 |     5,636 |     4,479 |
--------------------------------------------------------------------------------

Comparable operating profit by segment                                          
--------------------------------------------------------------------------------
| EUR million                    |   IV/08  |   IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Power Generation               |      378 |      363 |     1,528 |     1,095 |
--------------------------------------------------------------------------------
| Heat                           |      109 |      120 |       250 |       290 |
--------------------------------------------------------------------------------
| Distribution                   |       63 |       50 |       248 |       231 |
--------------------------------------------------------------------------------
| Markets                        |        0 |       -1 |       -33 |        -1 |
--------------------------------------------------------------------------------
| Russia                         |      -20 |        - |       -92 |         - |
--------------------------------------------------------------------------------
| Other                          |      -22 |      -16 |       -56 |       -51 |
--------------------------------------------------------------------------------
| Total                          |      508 |      516 |     1,845 |     1,564 |
--------------------------------------------------------------------------------

Operating profit by segment                                                     
--------------------------------------------------------------------------------
| EUR million                    |   IV/08  |   IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Power Generation               |      470 |      351 |     1,599 |     1,115 |
--------------------------------------------------------------------------------
| Heat                           |      155 |      121 |       307 |       294 |
--------------------------------------------------------------------------------
| Distribution                   |       61 |       51 |       248 |       233 |
--------------------------------------------------------------------------------
| Markets                        |      -29 |        2 |       -35 |        12 |
--------------------------------------------------------------------------------
| Russia                         |      -19 |       12 |       -91 |       244 |
--------------------------------------------------------------------------------
| Other                          |      -27 |      -17 |       -65 |       -51 |
--------------------------------------------------------------------------------
| Total                          |      611 |      520 |     1,963 |     1,847 |
--------------------------------------------------------------------------------

January-December                                                                

Group sales were EUR 5,636 (4,479) million. Group operating profit totalled EUR 
1,963 (1,847) million. Comparable operating profit increased to EUR 1,845       
(1,564) million.                                                                

Profit before taxes was EUR 1,850 (1,934) million.                              

The Group's net financial expenses increased to EUR 239 (154) million. The      
increase is attributable to a higher average level of debt and higher short-term
interest rates. The change in fair value of derivatives was EUR -11 (7) million.

Hafslund ASA is showing the fair value change in the REC shareholding through   
the income statement, while Fortum is showing the fair value change in equity.  
The fair value booked in Fortum's equity and based on the number of shares      
reported by Hafslund ASA was EUR 126 million at the end of December 2008 (EUR   
793 million at the end of 2007).                                                

Fortum's total equity stood at EUR 7,954 (8,359) million. The equity was lowered
by translation effects due to lower SEK, NOK and RUB exchange rates at year end,
while cash flow hedges (mainly power derivatives) contributed positively.       

Minority interests accounted for EUR 54 (56) million. The minority interests are
mainly attributable to Fortum Värme Holding AB, in which the City of Stockholm  
has a 50% economic interest.                                                    

Taxes for the period totalled EUR 254 (326) million. The tax rate according to  
the income statement was 13.7% (16.9%). The tax rate in 2007 was lowered by the 
non-taxable gains from Hafslund's sale of REC shares and from the sale of       
Lenenergo shares. The tax rate in 2008 was lowered by the one-time booking due  
to a reduction in deferred tax liabilities, stemming from the lowering of       
corporate tax rates in Sweden and Russia.                                       

The profit for the period was EUR 1,542 (1,552) million. Fortum's earnings per  
share were EUR 1.74 (1.74).                                                     

Return on capital employed was 15.0% (16.5%), and return on shareholders' equity
was 18.7% (19.1%).                                                              

Market conditions                                                               

According to preliminary statistics, the Nordic countries consumed 397 (401)    
terawatt hours (TWh) of electricity in 2008, about 1% less than the previous    
year. During the last quarter, consumption was about 104 (109) TWh, 5% less than
the year before.                                                                

During the fourth quarter, the average system spot price for power in Nord Pool 
was EUR 50.8 (42.7) per MWh or 19% higher than in the corresponding period in   
2007. During the fourth quarter, the Finnish and Swedish area prices continued  
to be above the system price levels, being EUR 52.4 (42.1) per MWh in Finland   
and EUR 52.8 (43.1) per MWh in Sweden. This was mainly due to exceptional       
malfunctions in transmission connections between Sweden and Norway. During 2008,
the average spot price for power in Nord Pool was EUR 44.7 (27.9) per           
megawatt-hour, or 60 % higher than in 2007. The Nord Pool spot price was higher 
mainly due to higher fuel and CO2 prices.                                       

In Germany, the average spot price for the fourth quarter was EUR 68.0 (57.7)   
per MWh, being higher than in the Nordic area. This resulted in a net export    
from the Nordic area to Germany.                                                

During 2008, the average market price of CO2 emission allowances (EUA) for 2008 
was EUR 23 per tonne CO2. In 2007, the corresponding price for CO2 emission     
allowances for 2007 was EUR 0.7 per tonne CO2. Coal and oil prices decreased    
during the second half of 2008.                                                 

Year 2008 started with the Nordic water reservoirs being 9 TWh above the        
long-term average and remained above the average until late August. At the end  
of December, the Nordic water reservoirs were 5 TWh below the long-term average 
and 13 TWh below the corresponding level last year.                             

According to preliminary statistics, electricity consumption in Russia increased
by about 2% in 2008 compared to 2007. In the Urals region, electricity          
consumption increased by about 1% in 2008 compared to 2007. The consumption     
decreased in the last quarter.                                                  

During the year, the average spot price for power for the European and Urals    
part of Russia in the Russian electricity exchange ATS was RUR 700 (570),       
approximately EUR 19.1 (16.3) per MWh. The increase in the spot price was mainly
due to higher gas prices. In addition, there is a capacity tariff for power     
generation, which varies by production unit but is, on average, approximately   
EUR 10 per MWh.                                                                 

Total power and heat generation figures                                         

Fortum's total power generation during January-December 2008 was 64.2 (52.2)    
TWh, of which 51.6 (51.1) TWh was in the Nordic countries, representing 13%     
(13%) of the total Nordic electricity consumption. Fortum's total heat          
generation during January-December 2008 was 40.3 (26.1) TWh, of which 20.8      
(22.1) TWh was in the Nordic countries.                                         

At year end, Fortum's total power generating capacity was 13,573 (10,920) MW, of
which 10,643 (10,775) MW was in the Nordic countries. At year end, Fortum's     
total heat production capacity was 24,263 (11,223) MW, of which 8,448 (9,381) MW
was in the Nordic countries. The increase in the total power and heat generation
volumes and capacities are mainly due to the inclusion of TGC-10, consolidated  
from the beginning of April.                                                    

Fortum's total power and heat generation figures are presented below. In        
addition, the segment reviews include the respective figures by segment.        

--------------------------------------------------------------------------------
| Fortum's total power and heat  |   IV/08  |   IV/07  |      2008 |      2007 |
| generation in the EU and       |          |          |           |           |
| Norway, TWh                    |          |          |           |           |
--------------------------------------------------------------------------------
| Power generation               |     13.1 |     14.2 |      52.6 |      52.2 |
--------------------------------------------------------------------------------
| Heat generation                |      7.4 |      8.2 |      25.0 |      26.1 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's total power and heat  |   IV/08  |   IV/07  |      2008 |      2007 |
| generation in Russia, TWh      |          |          |           |           |
--------------------------------------------------------------------------------
| Power generation               |      4.4 |        - |      11.6 |         - |
--------------------------------------------------------------------------------
| Heat generation                |      8.1 |        - |      15.3 |         - |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's own power generation  |   IV/08  |   IV/07  |     2008  |     2007  |
| by source, TWh,                |          |          |           |           |
| total in the                   |          |          |           |           |
| Nordic countries               |          |          |           |           |
--------------------------------------------------------------------------------
| Hydropower                     |      6.0 |      4.7 |      22.9 |      20.0 |
--------------------------------------------------------------------------------
| Nuclear power                  |      5.3 |      6.7 |      23.7 |      24.9 |
--------------------------------------------------------------------------------
| Thermal power                  |      1.6 |      2.5 |       5.0 |       6.2 |
--------------------------------------------------------------------------------
| Total                          |     12.9 |     13.9 |      51.6 |      51.1 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's own power generation  |   IV/08  |   IV/07  |     2008  |     2007  |
| by source, %, total in the     |          |          |           |           |
| Nordic countries               |          |          |           |           |
--------------------------------------------------------------------------------
| Hydropower                     |       47 |       34 |        44 |        39 |
--------------------------------------------------------------------------------
| Nuclear power                  |       41 |       48 |        46 |        49 |
--------------------------------------------------------------------------------
| Thermal power                  |       12 |       18 |        10 |        12 |
--------------------------------------------------------------------------------
| Total                          |      100 |      100 |       100 |       100 |
--------------------------------------------------------------------------------

Total power and heat sales figures                                              

Fortum's total power sales during January-December 2008 were 75.0 (59.7) TWh, of
which 59.1 (58.5) TWh were in the Nordic countries. This represents             
approximately 15% (15%) of estimated Nordic electricity consumption during      
January-December 2008. Fortum's total heat sales during January-December 2008   
were 42.2 (27.1) TWh, of which 20.0 (20.4) TWh were in the Nordic countries.    

--------------------------------------------------------------------------------
| Fortum's total electricity* and  |  IV/08  |  IV/07  |     2008  |     2007  |
| heat sales in the EU and Norway, |         |         |           |           |
| EUR million                      |         |         |           |           |
--------------------------------------------------------------------------------
| Electricity sales                |     771 |     697 |     2,959 |     2,370 |
--------------------------------------------------------------------------------
| Heat sales                       |     365 |     352 |     1,157 |     1,096 |
--------------------------------------------------------------------------------
* Nord Pool transactions are calculated as a net amount of hourly sales and     
purchases at the Group level.                                                   

--------------------------------------------------------------------------------
| Fortum's total electricity and   |  IV/08  |  IV/07  |     2008  |     2007  |
| heat sales in Russia, EUR        |         |         |           |           |
| million                          |         |         |           |           |
--------------------------------------------------------------------------------
| Electricity sales                |     115 |       - |       332 |         - |
--------------------------------------------------------------------------------
| Heat sales                       |      75 |       - |       141 |         - |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Fortum's total electricity     |   IV/08  |   IV/07  |     2008  |     2007  |
| sales* by area, TWh            |          |          |           |           |
--------------------------------------------------------------------------------
| Finland                        |      7.7 |      8.1 |      28.7 |      29.0 |
--------------------------------------------------------------------------------
| Sweden                         |      6.7 |      6.9 |      28.5 |      27.6 |
--------------------------------------------------------------------------------
| Russia                         |      5.6 |        - |      14.8 |         - |
--------------------------------------------------------------------------------
| Other countries                |      0.8 |      0.9 |       3.0 |       3.1 |
--------------------------------------------------------------------------------
| Total                          |     20.8 |     15.9 |      75.0 |      59.7 |
--------------------------------------------------------------------------------
* Nord Pool transactions are calculated as a net amount of hourly sales and     
purchases at the Group level.                                                   

--------------------------------------------------------------------------------
| Fortum's total heat sales by   |   IV/08  |   IV/07  |     2008  |     2007  |
| area, TWh                      |          |          |           |           |
--------------------------------------------------------------------------------
| Russia                         |      8.6 |        - |      15.3 |         - |
--------------------------------------------------------------------------------
| Finland                        |      3.1 |      3.4 |      10.8 |      11.1 |
--------------------------------------------------------------------------------
| Sweden                         |      3.0 |      3.1 |       9.1 |       9.2 |
--------------------------------------------------------------------------------
| Poland                         |      1.3 |      1.4 |       3.6 |       3.5 |
--------------------------------------------------------------------------------
| Other countries**              |      1.0 |      1.0 |       3.4 |       3.3 |
--------------------------------------------------------------------------------
| Total                          |     17.0 |      8.9 |      42.2 |      27.1 |
--------------------------------------------------------------------------------
** Including the UK, which is reported in the Power Generation segment, other   
sales.                                                                          

Fortum's emissions subject to the EU's trading scheme                           

During 2008, approximately 92% (89%) of the power generated by Fortum within the
EU countries was CO2-free.                                                      

Fortum's total CO2 emissions subject to the EU's emissions trading scheme (ETS) 
in 2008 amounted to 7.2 million tonnes of CO2.                                  

Fortum's total annual CO2 allowance allocation for its power and heat plants is 
approximately 5.9 million tonnes per year during 2008-2012. In Finland, Fortum's
CO2 allocation is approximately 4.1 million tonnes of CO2 per annum,            
representing 11% of the Finnish national allocation. In Sweden, Fortum's free   
CO2 allocation is approximately 0.2 million tonnes of CO2 per annum,            
representing 0.7% of the Swedish national allocation.                           

Fortum's target in the EU countries is to decrease its emissions in power       
generation to less than 80 g/kWh by 2020 as a five-year average. In heat        
production, Fortum aims at reducing the specific emissions in each country by at
least 10% from 2006 until 2020. Outside the EU, Fortum is committed to          
increasing the energy efficiency, thus reducing specific emissions.             

--------------------------------------------------------------------------------
| Total CO2 emissions            |    2005  |     2006 |      2007 |      2008 |
| (million tonnes)               |          |          |           |           |
--------------------------------------------------------------------------------
| Total emissions                |      6.3 |     11.0 |      10.4 |      17.6 |
--------------------------------------------------------------------------------
| Emissions subject to ETS       |      5.9 |     10.5 |       9.8 |       7.2 |
--------------------------------------------------------------------------------
| Free emission allocation       |      8.1 |      8.1 |       8.1 |       5.9 |
--------------------------------------------------------------------------------
| Emissions in Russia            |        - |        - |         - |       9.8 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Specific CO2 emissions of      |    2005  |     2006 |      2007 |      2008 |
| Fortum's power generation      |          |          |           |           |
| (g/kWh)                        |          |          |           |           |
--------------------------------------------------------------------------------
| Specific emissions within ETS  |       38 |      107 |        64 |        41 |
--------------------------------------------------------------------------------

SEGMENT REVIEWS                                                                 

Power Generation                                                                

The business area comprises power generation and sales in the Nordic countries  
and the provision of operation and maintenance services in the Nordic area and  
selected international markets. The Power Generation segment sells its          
production to Nord Pool. The segment includes the business units Generation,    
Portfolio Management and Trading (PMT), and Service.                            

--------------------------------------------------------------------------------
| EUR million                       |  IV/08  |   IV/07  |    2008  |    2007  |
--------------------------------------------------------------------------------
| Sales                             |     736 |      685 |    2,892 |    2,350 |
--------------------------------------------------------------------------------
| - power sales                     |     638 |      586 |    2,566 |    2,019 |
--------------------------------------------------------------------------------
| - other sales                     |      98 |       99 |      326 |      331 |
--------------------------------------------------------------------------------
| Operating profit                  |     470 |      351 |    1,599 |    1,115 |
--------------------------------------------------------------------------------
| Comparable operating profit       |     378 |      363 |    1,528 |    1,095 |
--------------------------------------------------------------------------------
| Net assets (at period-end)        |         |          |    5,331 |    5,599 |
--------------------------------------------------------------------------------
| Return on net assets, %           |         |          |     29.6 |     19.2 |
--------------------------------------------------------------------------------
| Comparable return on net assets,  |         |          |     28.0 |     18,9 |
| %                                 |         |          |          |          |
--------------------------------------------------------------------------------
| Gross investments                 |      49 |       84 |      134 |      145 |
--------------------------------------------------------------------------------
| Number of employees               |         |          |    3,520 |    3,511 |
--------------------------------------------------------------------------------

The segment's power generation during the fourth quarter amounted to 11.4 (12.2)
TWh in the Nordic countries.                                                    

In January-December, the segment's power generation in the Nordic countries was 
46.9 (46.1) TWh. In January-December, approximately 97% (95%) of the segment's  
power generation was CO2-free.                                                  

--------------------------------------------------------------------------------
| Nordic power generation by     |   IV/08  |   IV/07  |     2008  |     2007  |
| source, TWh                    |          |          |           |           |
--------------------------------------------------------------------------------
| Hydropower                     |      6.0 |      4.7 |      22.9 |      20.0 |
--------------------------------------------------------------------------------
| Nuclear power                  |      5.3 |      6.7 |      23.7 |      24.9 |
--------------------------------------------------------------------------------
| Thermal power                  |      0.1 |      0.8 |       0.3 |       1.2 |
--------------------------------------------------------------------------------
| Total                          |     11.4 |     12.2 |      46.9 |      46.1 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Power generation by area, TWh  |   IV/08  |   IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Sweden                         |      6.1 |      6.5 |      26.8 |      26.0 |
--------------------------------------------------------------------------------
| Finland                        |      5.3 |      5.7 |      20.1 |      20.1 |
--------------------------------------------------------------------------------
| Other countries                |      0.3 |      0.3 |       1.0 |       1.1 |
--------------------------------------------------------------------------------
| Total                          |     11.7 |     12.5 |      47.9 |      47.2 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Nordic sales volume, TWh       |     12.8 |     13.7 |      52.1 |      51.8 |
--------------------------------------------------------------------------------
|  of which pass-through sales   |      0.8 |      1.0 |       3.7 |       5.2 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| Sales price, EUR/MWh           |   IV/08  |   IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Generation's Nordic power      |     49.1 |     43.0 |      49.3 |      39.7 |
| price*                         |          |          |           |           |
--------------------------------------------------------------------------------
* For the Power Generation segment in the Nordic countries, excluding           
pass-through sales.                                                             

During the fourth quarter, the average system spot price in Nord Pool was EUR   
50.8 per MWh, with the Finnish area price being EUR 52.4 per MWh and the Swedish
area price EUR 52.8 per MWh. In the fourth quarter, Generation's achieved Nordic
power price was EUR 49.1 per MWh, up by 14% from a year ago. Segment's Nordic   
sales volume without pass-through items was 12.0 (12.7) TWh in the period.      

During January-December 2008, the average system spot price in Nord Pool was EUR
44.7 per MWh, with the Finnish area price being EUR 51.0 per MWh and the Swedish
area price EUR 51.1 per MWh. Generation's achieved Nordic power price was EUR   
49.3 per MWh, up by 24% from a year ago.                                        

The comparable operating profit of the Power Generation segment was higher in   
the fourth quarter than in the corresponding period last year. The improvement  
was mainly due to a higher achieved Nordic power price. In addition, higher     
hydro power generation contributed positively to the operating profit. The      
positive effects were partly offset by unplanned nuclear outages in Sweden,     
lower thermal power generation volumes and currency effect from weaker SEK.     

The segment's comparable operating profit in 2008 does not include material     
gains from the sale of CO2 allowances as it did in 2007. The segment's          
comparable operating profit in the fourth quarter of 2007 included EUR 32       
million from the sale of CO2 allowances. The translation effect from weaker SEK 
was approximately EUR -35 million, mainly in the fourth quarter comparable      
operating profit for the segment.                                               

In January-December 2008, the comparable operating profit of the Power          
Generation segment was clearly higher than last year. The segment's higher      
achieved Nordic power price and all-time high hydro power generation were the   
main drivers for the achievement. The positive effects were partly offset by    
unplanned nuclear outages in Sweden, lower thermal power generation volumes and 
higher nuclear capacity tax and hydro power property taxes in Sweden. The       
additional cost from these tax increases was approximately EUR 25 million in    
2008.                                                                           

During the fourth quarter, one unit in both the Oskarshamn and Forsmark nuclear 
power plants, where Fortum is a co-owner, were unavailable due to cracks being  
found in fuel control rods. The units came back into operation on 1 January     
2009.                                                                           

In Finland, Fortum is participating in the country's fifth nuclear power plant  
unit, Olkiluoto 3, with an approximately 25% share, representing some 400 MW in 
capacity. In January 2009, TVO disclosed information, confirmed by              
Areva-Siemens, that the construction of the unit is delayed and the unit is     
estimated to start up in summer 2012. In December 2008, the constructor TVO     
informed that the plant supplier, consortium AREVA-Siemens, had filed a request 
for arbitration in the International Chamber of Commerce (ICC) concerning the   
Olkiluoto 3 delay and related costs.                                            
Heat                                                                            

The business area comprises heat generation and sales in the Nordic countries   
and other parts of the Baltic Rim. Fortum is a leading heat producer in the     
Nordic region. The segment also generates power in combined heat and power      
plants (CHP) and sells it to end-customers mainly through long-term contracts,  
as well as to Nord Pool. The segment includes the business units Värme,         
operating in Sweden, and Heat, operating mainly in other markets.               

--------------------------------------------------------------------------------
| EUR million                       | IV/08  |  IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Sales                             |    463 |     439 |     1,466 |     1,356 |
--------------------------------------------------------------------------------
| - heat sales                      |    354 |     341 |     1,120 |     1,053 |
--------------------------------------------------------------------------------
| - power sales                     |     76 |      69 |       228 |       202 |
--------------------------------------------------------------------------------
| - other sales                     |     33 |      29 |       118 |       101 |
--------------------------------------------------------------------------------
| Operating profit                  |    155 |     121 |       307 |       294 |
--------------------------------------------------------------------------------
| Comparable operating profit       |    109 |     120 |       250 |       290 |
--------------------------------------------------------------------------------
| Net assets (at period-end)        |        |         |     3,468 |     3,507 |
--------------------------------------------------------------------------------
| Return on net assets, %           |        |         |       8.9 |       9.3 |
--------------------------------------------------------------------------------
| Comparable return on net assets,  |        |         |       7.3 |       9.2 |
| %                                 |        |         |           |           |
--------------------------------------------------------------------------------
| Gross investments                 |    144 |     121 |       431 |       327 |
--------------------------------------------------------------------------------
| Number of employees               |        |         |     2,318 |     2,279 |
--------------------------------------------------------------------------------

The segment's heat sales during the fourth quarter amounted to 7.9 (8.3) TWh,   
most of which was generated in the Nordic countries. During the same period,    
power sales from CHP production totalled 1.4 (1.7) TWh.                         

The segment's heat sales during January-December 2008 amounted to 24.9 (25.1)   
TWh, most of which was generated in the Nordic countries. During the same       
period, power sales from CHP production totalled 4.7 (5.0) TWh. Warm            
temperatures in the heating season affected heat demand in the first and last   
quarters of the year.                                                           

The Heat segment's comparable operating profit during the fourth quarter was EUR
11 million lower than the previous year, mainly due to higher fuel prices and   
CO2 costs. Lower heating demand and SEK depreciation further weakened           
profitability.                                                                  

The Heat segment's comparable operating profit during January-December was EUR  
40 million lower than the previous year, mainly due to the warm weather, higher 
fuel prices, CO2 emission costs, maintenance costs due to unavailability of some
CHP plants and SEK depreciation.                                                

--------------------------------------------------------------------------------
| Heat sales by area, TWh        |   IV/08  |   IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Finland                        |      3.1 |      3.4 |      10.8 |      11.1 |
--------------------------------------------------------------------------------
| Sweden                         |      3.0 |      3.0 |       9.1 |       9.2 |
--------------------------------------------------------------------------------
| Poland                         |      1.3 |      1.4 |       3.6 |       3.5 |
--------------------------------------------------------------------------------
| Other countries                |      0.5 |      0.5 |       1.4 |       1.3 |
--------------------------------------------------------------------------------
| Total                          |      7.9 |      8.3 |      24.9 |      25.1 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Power sales, TWh               |   IV/08  |   IV/07  |     2008  |     2007  |
--------------------------------------------------------------------------------
| Total                          |      1.4 |      1.7 |       4.7 |       5.0 |
--------------------------------------------------------------------------------

Distribution                                                                    

Fortum owns and operates distribution and regional networks and distributes     
electricity to a total of 1.6 million customers in Sweden, Finland, Norway and  
Estonia.                                                                        

--------------------------------------------------------------------------------
| EUR million                       |  IV/08  |   IV/07  |    2008  |    2007  |
--------------------------------------------------------------------------------
| Sales                             |     206 |      206 |      789 |      769 |
--------------------------------------------------------------------------------
| - distribution network            |     175 |      173 |      669 |      648 |
| transmission                      |         |          |          |          |
--------------------------------------------------------------------------------
| - regional network transmission   |      18 |       21 |       77 |       81 |
--------------------------------------------------------------------------------
| - other sales                     |      13 |       12 |       43 |       40 |
--------------------------------------------------------------------------------
| Operating profit                  |      61 |       51 |      248 |      233 |
--------------------------------------------------------------------------------
| Comparable operating profit       |      63 |       50 |      248 |      231 |
--------------------------------------------------------------------------------
| Net assets (at period-end)        |         |          |    3,032 |    3,239 |
--------------------------------------------------------------------------------
| Return on net assets, %           |         |          |      8.1 |      7.7 |
--------------------------------------------------------------------------------
| Comparable return on net assets,  |         |          |      8.2 |      7.6 |
| %                                 |         |          |          |          |
--------------------------------------------------------------------------------
| Gross investments                 |      93 |      118 |      296 |      237 |
--------------------------------------------------------------------------------
| Number of employees               |         |          |    1,336 |    1,063 |
--------------------------------------------------------------------------------

The volume of distribution and regional network transmissions during 2008       
totalled 25.8 (26.0) TWh and 17.7 (18.1) TWh, respectively.                     

Electricity transmissions via the regional distribution network totalled 14.8   
(14.9) TWh in Sweden and 2.9 (3.2) TWh in Finland.                              

The comparable operating profit of the Distribution segment was EUR 63 million  
in the fourth quarter, EUR 13 million higher than the previous year. In 2007,   
the comparable operating profit was affected by one-time price adjustments to   
customers in Finland.                                                           

The comparable operating profit of the Distribution segment was EUR 248 million,
EUR 17 million higher than the previous year. Depreciations on meters for       
automatic meter reading started in the second half of 2008. In 2007, the        
segment's result was negatively affected by winter storms in Sweden and one-time
price adjustments to customers in Finland.                                      

The Swedish Energy Market Inspectorate (Energimarknadsinspektionen) and Swedish 
energy companies reached an agreement on 2003-2008 network tariffs. As a part of
the agreement, Fortum has accepted to withdraw a planned price increase for the 
West Coast area and to make a one-time payback of EUR 2 million to Fortum's     
Stockholm area distribution customers.                                          

The main roll-out of new smart meters (Automated Meter Management, AMM) in      
Sweden was finalised during December 2008. By the end of the year, about 800,000
meters out of the 844,000 were installed, of which 740,000 are activated for    
monthly meter reading. The remaining meters will be installed during the coming 
months. The legislation for monthly meter reading takes effect as of 1 July     
2009.                                                                           

--------------------------------------------------------------------------------
| Volume of distributed            |  IV/08  |    IV/07 |    2008  |      2007 |
| electricity in distribution      |         |          |          |           |
| network, TWh                     |         |          |          |           |
--------------------------------------------------------------------------------
| Sweden                           |     3.8 |      4.1 |     14.0 |      14.3 |
--------------------------------------------------------------------------------
| Finland                          |     2.6 |      2.6 |      9.3 |       9.2 |
--------------------------------------------------------------------------------
| Norway                           |     0.7 |      0.8 |      2.3 |       2.3 |
--------------------------------------------------------------------------------
| Estonia                          |     0.1 |      0.1 |      0.2 |       0.2 |
--------------------------------------------------------------------------------
| Total                            |     7.2 |      7.6 |     25.8 |      26.0 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Number of electricity distribution  |      31 Dec 2008 |         31 Dec 2007 |
| customers by area, thousands        |                  |                     |
--------------------------------------------------------------------------------
| Sweden                              |              877 |                 871 |
--------------------------------------------------------------------------------
| Finland                             |              606 |                 591 |
--------------------------------------------------------------------------------
| Other countries                     |              123 |                 122 |
--------------------------------------------------------------------------------
| Total                               |            1,606 |               1,584 |
--------------------------------------------------------------------------------

Markets                                                                         

Markets is responsible for retail sales of electricity to a total of 1.3 million
private and business customers as well as to other electricity retailers in     
Sweden, Finland and Norway. Markets buys its electricity through Nord Pool.     
Markets sells approximately 75% of its volumes to business customers and 25% to 
retail consumers.                                                               

--------------------------------------------------------------------------------
| EUR million                         |  IV/08  |  IV/07  |   2008  |    2007  |
--------------------------------------------------------------------------------
| Sales                               |     531 |     482 |   1,922 |    1,683 |
--------------------------------------------------------------------------------
| - power sales                       |     519 |     451 |   1,865 |    1,582 |
--------------------------------------------------------------------------------
| - other sales                       |      12 |      31 |      57 |      101 |
--------------------------------------------------------------------------------
| Operating profit                    |     -29 |       2 |     -35 |       12 |
--------------------------------------------------------------------------------
| Comparable operating profit         |       0 |      -1 |     -33 |       -1 |
--------------------------------------------------------------------------------
| Net assets (at period-end)          |         |         |     188 |      247 |
--------------------------------------------------------------------------------
| Return on net assets, %             |         |         |   -14.0 |      6.9 |
--------------------------------------------------------------------------------
| Comparable return on net assets, %  |         |         |   -15.3 |     -0.6 |
--------------------------------------------------------------------------------
| Gross investments                   |       0 |       1 |       3 |        3 |
--------------------------------------------------------------------------------
| Number of employees                 |         |         |     635 |      935 |
--------------------------------------------------------------------------------

In the fourth quarter, Markets' electricity sales totalled 9.6 (10.5) TWh. The  
decrease in the sales volume was mainly due to some expired long-term business  
customer contracts. For the whole year 2008, electricity sales were 36.6 (39.6) 
TWh.                                                                            

Markets' fourth-quarter comparable operating profit was low due to high         
procurement costs weakening the sales margin. The high procurement costs were   
partly stemming from the Nord Pool area price differences. Markets was unable to
fully pass on the increased wholesale prices and procurement costs in its retail
sales prices.                                                                   

In the fourth quarter, Markets announced a 14% price increase for its           
current-price product "Kesto" in Finland, effective from 1 December. Around 3   
TWh of the approximately 4 TWh annual total to Finnish retail customers is sold 
through current-price contracts.                                                

Due to continuing unsatisfactory business performance, a restructuring programme
was launched in 2008. Several cost-saving actions were initiated. The employee  
negotiations in Finland and Sweden to centralise Markets' service activities    
were finalised by the end of 2008. Markets' new organisation was published at   
the beginning of 2009.                                                          

Russia                                                                          

The segment comprises power and heat generation and sales in Russia. The segment
includes TGC-10 and Fortum's holding in TGC-1. TGC-10 is accounted for as a     
subsidiary and fully consolidated from 1 April 2008. TGC-1 is an associated     
company and accounted for using the equity method.                              
--------------------------------------------------------------------------------
| EUR million                         |  IV/08  |  IV/07  |   2008  |    2007  |
--------------------------------------------------------------------------------
| Sales                               |     197 |       - |     489 |        - |
--------------------------------------------------------------------------------
| - power sales                       |     115 |       - |     332 |        - |
--------------------------------------------------------------------------------
| - heat sales                        |      75 |       - |     141 |        - |
--------------------------------------------------------------------------------
| - other sales                       |       7 |       - |      16 |        - |
--------------------------------------------------------------------------------
| Operating profit                    |     -19 |      12 |     -91 |      244 |
--------------------------------------------------------------------------------
| Comparable operating profit         |     -20 |       - |     -92 |        - |
--------------------------------------------------------------------------------
| Net assets (at period-end)          |         |         |   2,205 |      456 |
--------------------------------------------------------------------------------
| Return on net assets, %             |         |         |    -3.7 |     66.3 |
--------------------------------------------------------------------------------
| Comparable return on net assets, %  |         |         |    -3.8 |      0.0 |
--------------------------------------------------------------------------------
| Gross investments                   |     126 |       - |   1,748 |      245 |
--------------------------------------------------------------------------------
| Number of employees                 |         |         |   7,262 |        - |
--------------------------------------------------------------------------------

TGC-10 operates in well-developed industrial regions of the Urals and Western   
Siberia. The growing activities of oil and gas companies and the increase in    
housing construction are the main drivers behind the increasing power and heat  
demand in the region.                                                           

The segment's power sales during the fourth quarter amounted to 5.6 TWh. During 
the same period, heat sales of the segment totalled 8.6 TWh.                    

The segment's power sales during April-December 2008 amounted to 14.8 TWh.      
During the same period, heat sales of the segment totalled 15.3 TWh.            

The segment booked a comparable operating loss in the fourth quarter of 2008.   
The loss for the three consolidated quarters is explained by TGC-10's           
stand-alone loss of EUR 33 million, the surplus value depreciation of EUR 38    
million (depreciation on the EUR 1,022 million that has been allocated to the   
fair value of TGC-10's property, plant and equipment), and integration costs of 
EUR 21 million. TGC-10's business is typically very seasonal: Its results       
usually are strongest during the first and last quarters of the year. TGC-10    
figures have been consolidated starting from the beginning of April 2008.       

Russian power sector reform is proceeding. Starting from 1 January 2009, 30% of 
all produced power is sold on the competitive market. The wholesale power market
is expected to be fully liberalised by 2011. The capacity market was launched at
the beginning of July 2008, as planned.                                         

In August 2008, the contract was signed for the biggest project in the          
investment programme, the construction of the Nyaganskaya power plant (capacity 
1,200 MW).                                                                      

Construction work commenced at the Tyumen, Tobolsk and Chelyabinsk CHP sites.   

In September, Fortum announced that it will gain approximately 1.5 million      
tonnes of emission reduction units (ERU) from joint implementation projects     
conducted at TGC-10 between 2009 and 2012.                                      

Fortum is putting considerable focus on the integration of TGC-10 as a part of  
Fortum. The integration process started in April 2008. The new organisational   
structure and Fortum's management model have been in place since the beginning  
of September 2008.                                                              
The integration has proceeded well and several targets for efficiency           
improvements have been identified. Consequently, the annual efficiency          
improvements are expected to be approximately EUR 100 million by 2011.          

Capital expenditures, divestments and investments in shares                     

Capital expenditures and investments in shares in January-December totalled EUR 
2,624 (972) million. Investments, excluding acquisitions, were EUR 1,108 (655)  
million.                                                                        

POWER GENERATION                                                                

In June, Fortum and Hafslund Infratek ASA signed a letter of intent with the aim
to combine Fortum Service's Infrastructure Solutions operations with Hafslund   
Infratek. The deal concerns all Infrastructure Solutions operations in Sweden,  
Norway and Finland and altogether 1,060 Fortum employees. In January 2009, the  
Norwegian competition authorities accepted the establishment of Infratek ASA and
the deal was closed. Fortum's ownership of the new combined company Infratek ASA
is 33%. Hafslund ASA holds 43.3% of the shares in the combined company. Infratek
ASA is listed on the Oslo Stock Exchange.                                       

HEAT                                                                            

The construction work of new CHP-plants in Czestochowa in Poland, in Tartu in   
Estonia and in Suomenoja, Finland, continued and investments were EUR 134 (58)  
million.                                                                        

In October, Heat sold its 60% share of a company operating a CHP plant in       
Jyväskylä, Finland. The transaction took effect at the end of 2008.             

DISTRIBUTION                                                                    

Investments, excluding acquisitions, were EUR 296 (236) million. The AMM        
investment programme represented EUR 104 (64) million of this.                  

RUSSIA                                                                          

In the first quarter of 2008, Fortum acquired a controlling stake (76.5%) in the
Russian Territorial Generating Company No. 10 (TGC-10), consisting of a         
29.1-percentage-point share acquisition from United Energy Systems of Russia    
(RAO UES), for approximately EUR 0.8 billion, and a 47.4-percentage-point share 
issue for approximately EUR 1.3 billion.                                        

In the second quarter, Fortum filed the mandatory public tender offer to        
TGC-10's minorities. The period of offer was from 30 April until 18 October     
2008. The tender offer covered 23.51% of the share capital of TGC-10 and was    
launched at a price of 111.8 roubles (approximately EUR 3) per share to be fully
paid in cash. The tender price was the same price Fortum paid for its shares    
acquired through the auction and share issue, and it represented a significant  
premium to the market price. At the end of December, Fortum's ownership in      
TGC-10 was 93.4%, and by that time Fortum had paid EUR 465 million for the      
additional share purchases.                                                     

TGC-10 has an extensive investment programme aiming to increase its power       
capacity to 5,300 MW. In October, Fortum estimated the value of the investment  
programme in new capacity to be approximately EUR 2.5 billion. The value for the
remaining part of the programme, calculated at year-end exchange rates, is      
estimated to be EUR 2.0 billion from January 2009 onwards.                      

Financing                                                                       

At year end, the interest-bearing net debt stood at EUR 6,179 (year-end 2007:   
EUR 4,466) million, resulting in a total increase of EUR 1,713 million in net   
debt during the year.                                                           
The increase in net debt is primarily linked to the acquisition of TGC10.       

During the fourth quarter, net debt decreased by EUR 341 million from EUR 6,520 
million at the end of the third quarter. The decrease in net debt during the    
quarter is mainly due to strong operating cash flow but also  the approximately 
EUR 100-million in translation differences when consolidating                   
non-EUR-denominated debt in Fortum's foreign subsidiaries (mainly               
SEK-denominated debt in Swedish subsidiaries) into EUR.                         

During the fourth quarter, total liquid funds increased by EUR 142 million from 
EUR 1,179 million to EUR 1,321 (year-end 2007: EUR 427) million at year end. The
liquid funds include cash and bank deposits held by TGC-10, amounting to EUR    
1,020 million, of which approximately half was denominated in RUB at year end.  
In addition to the liquid funds, the Group had a total of approximately EUR 2.3 
(year-end 2007: 1.4) billion available for drawings under committed credit      
facilities.                                                                     
                                                                                
During the year, Fortum raised a syndicated loan facility of EUR 3,500 million. 
The loan facility is structured as a 3-year term-loan of EUR 2,000 million to be
used for acquisition financing of TGC-10, and as a 5-year revolving credit      
facility of EUR 1,500 million. At year end, the term-loan was fully drawn and   
EUR 600 million of the new revolving credit facility was drawn. No material, new
long-term financing arrangements were established in the fourth quarter.        
Short-term financing (mainly issuance of Commercial paper) decreased during the 
quarter by EUR 105 million from EUR 625 million to EUR 520 million at year end. 
(year-end 2007: 26)                                                             

Debt maturities in 2009 amount to approximately EUR 980 million and have        
increased by EUR 522 million compared to previous quarter, as a consequence of  
the roll-over of mainly short-term commercial paper but also due to the fact    
that Fortum in 2009 may prepay long-term debt issued by TGC-10 amounting to     
approximately EUR 194 million.                                                  

The Group's net financial expenses for the full-year 2008 were EUR 239 (154)    
million. The increase in financial expenses is attributable to higher average   
net debt and higher average interest rates in 2008 compared to 2007. Net        
financial expenses include fair value losses on financial instruments of EUR 11 
(fair value gain 7) million.                                                    

For the fourth quarter, the Group's net financial expenses were EUR 54 (37)     
million. Net financial expenses include fair value losses on financial          
instruments of EUR 16 (fair value gain 3) million.                              

Net debt to EBITDA was 2.5 (1.9).                                               

Fortum Corporation's long-term credit rating from Moody's and Standard & Poor's 
was 'A2' (outlook stable) and "A-" (outlook stable), respectively.              

Shares and share capital                                                        

During 2008, a total of 628.2 (787.4) million Fortum Corporation shares,        
totalling EUR 15,571 million, were traded. Fortum's market capitalisation,      
calculated using the closing quotation of the last trading day of the year, was 
EUR 13,519 million. The highest quotation of Fortum Corporation shares on the   
NASDAQ OMX Helsinki in 2008 was EUR 33.00, the lowest EUR 12.77, and the        
volume-weighted average quotation EUR 24.76. The closing quotation on the last  
trading day of the year was EUR 15.23 (30.81).                                  

A total of 955,022 shares subscribed on the basis of share option schemes were  
entered into the trade register in 2008. At the end of 2008, Fortum Corporation 
did not own its own shares.                                                     

After registrations, Fortum Corporation's share capital was EUR 3,043,707,472   
and the total number of registered shares was 887,638,080 at the end of 2008.   
The share capital of Fortum Corporation increased by a total of EUR             
3,247,074.80.                                                                   

At year-end 2008, the amount of shares that can still be subscribed for and     
registered under the share option schemes is a maximum of 0.1% (728,965 shares) 
of Fortum's year-end share capital and voting rights.                           

At year end, the Finnish state's holding in Fortum was 50.8%. The proportion of 
nominee registrations and direct foreign shareholders was 35.2%.                

Currently, the Board of Directors has no unused authorisations from the Annual  
General Meeting of Shareholders to issue convertible loans or bonds with        
warrants or to issue new shares. The Board of Directors has an authorisation    
from the Annual General Meeting of Shareholders on 1 April 2008 to buy Fortum   
Corporation's own shares. The authorisation, amounting to EUR 300 million or 15 
million shares, is valid until the next Annual General Meeting.                 

Group personnel                                                                 

The average number of employees in the Group during the period from January to  
December was 14,077 (8,304). The number of employees at the end of the period   
was 15,579 (8,303). The increase in the number of employees is due to the       
acquisition of TGC-10.                                                          

Events after the period under review                                            

Fortum and the Norwegian Hafslund Infratek ASA combined their businesses of     
construction and operating of infrastructure in Sweden, Finland and Norway as of
15 January 2009.                                                                

On 5 February, Fortum submitted its application to the Finnish government for a 
decision-in-principle on the construction of a nuclear power plant to its       
Loviisa site, where Fortum already owns and operates two nuclear reactors.      
According to preliminary plans, the plant could be in operation in 2020. The    
plant's planned lifetime would be at least 60 years. Depending on the size and  
type of the reactor, the total investment is estimated to be EUR 4-6 billion.   

Outlook                                                                         

The key market driver influencing Fortum's business performance is the wholesale
price of electricity. Key drivers behind wholesale price development are the    
supply-demand balance, CO2 emissions allowance and fuel prices as well as the   
hydrological situation. The exchange rates of the Swedish krona and Russian     
rouble also affect Fortum's financials.                                         

The balance sheet translation effects from potential changes in currency        
exchange rates are booked in Fortum's equity.                                   

The ongoing economic and financial slowdown may continue to depress power demand
in the markets where Fortum operates. Lower power demand and commodity prices,  
which may be further affected by the recession, have a negative impact on power 
prices. The ongoing economic crisis may also increase Fortum's counterparty     
risk.                                                                           

Fortum's financial results are exposed to a number of strategic, financial and  
operational risks. For further details on Fortum's risks and risk management,   
see Fortum's Operating and Financial Review and Financial Statements for 2007.  

Economic slowdown is expected to further affect electricity consumption growth  
in the Nordic countries. In the longer term, electricity consumption in the     
Nordic countries is predicted to increase by less than 1% a year.               

In Russia, one of the key assumptions in the TGC-10 acquisition is the          
continuation of the Russian power sector reform. As planned, the share of power 
sold at a competitive price was increased from 15% to 25% on 1 July 2008 and    
further to 30% in the beginning of 2009. The share is planned to be increased to
50% at the beginning of July 2009. The first phase of the capacity market was   
launched at the beginning of July 2008. The rules for the long-term capacity    
market, taking place from 2011 onwards, are under preparation. The wholesale    
power market is expected to be fully liberalised in 2011.                       

TGC-10 is committed and contractually obligated to a significant investment     
programme, still amounting to approximately EUR 2.0 billion for 2009 and        
onwards. However, the economic slowdown is likely to further affect the Russian 
power demand-supply balance. Fortum as well as other power companies in Russia  
are currently in the process of analysing the effects from changed economic     
conditions and their potential impact on the timing of investment programmes.   

The acquisition of TGC-10 is expected to marginally dilute Fortum's EPS during  
2009. Annual efficiency improvements are expected to be approximately EUR 100   
million in 2011.                                                                

In late January 2009, the Nordic water reservoirs were about 4 TWh below the    
long-term average and 14 TWh below the corresponding level of 2008. In late     
January, the market price for emissions allowances (EUA) for 2009 was about EUR 
12 per tonne CO2. At the same time, the electricity forward price for the rest  
of 2009 was around EUR 38-39 per MWh and for 2010 around EUR 34-36 per MWh.     

The first and last quarters of the year are usually the strongest quarters for  
the power and heat businesses.                                                  

Fortum Power Generation's achieved Nordic power price typically depends on e.g. 
the hedge ratio, hedge price, spot prices, availability and utilisation of      
Fortum's flexible production portfolio and currency fluctuations. Excluding the 
potential effects from the changes in the power generation mix, a 1 EUR/MWh     
change in Generation's achieved Nordic sales price results in an approximately  
EUR 50-million change in Fortum's annual operating profit.                      

At the end of January 2009, Fortum had hedged approximately 65% of the Power    
Generation segment's estimated Nordic electricity sales volume for the rest of  
2009 at approximately EUR 53 per MWh. For the calendar year 2010, approximately 
50% of the Power Generation segment's estimated Nordic electricity sales volume 
was hedged at approximately EUR 46 per MWh.                                     

The reported hedge ratios may vary significantly depending on Fortum's actions  
on the electricity derivatives markets. Hedges are mainly financial contracts,  
most of them Nord Pool forwards or standardised futures, consisting of several  
types of products and maturities. Hedge prices are also influenced by changes in
the SEK/EUR exchange rates, as some of the hedges are conducted in SEK.         

Fortum's results in 2008 were good. A flexible and climate-benign production    
portfolio accompanied by a strong financial position and liquidity enable Fortum
to meet the challenges caused by the financial crisis. Fortum is in a stable    
position to weather the turbulence, despite the lower visibility beyond 2009.   

Dividend distribution proposal                                                  

The parent company's distributable equity as of 31 December 2008 amounted to EUR
3,742 million. Since the end of the financial period, there have been no        
material changes in the financial position of the Company.                      

The Board of Directors proposes to the Annual General Meeting that Fortum       
Corporation pay a cash dividend of EUR 1.00 per share for 2008, totalling EUR   
888 million based on the number of registered shares as of 4 February 2009.     


Espoo, 4 February 2008                                                          
Fortum Corporation                                                              
Board of Directors                                                              

Further information:                                                            
Mikael Lilius, President and CEO, tel. +358 10 452 9100                         
Juha Laaksonen, CFO,                                                            
tel. +358 10 452 4519                                                           

The Board of Directors has approved Fortum's 2008 financial statements and      
Fortum's auditors have issued their audit report for 2008 on 4 February 2009.   
The condensed interim financial statements have been prepared in accordance with
International Accounting Standard (IAS) 34, Interim Financial Reporting, as     
adopted by the EU.                                                              

Fortum's Annual General Meeting is planned to take place on 7 April 2009.       

The annual report for 2008 will be published during week 12 at the latest.      

Publication of results in 2009:                                                 
Interim Report January-March will be published on 28 April 2009 at approx. 9:00 
EET.                                                                            
Interim Report January-June will be published on 17 July 2009 at approx. 9:00   
EET.                                                                            
Interim Report January-September will be published on 22 October 2009 at approx.
9:00 EET.                                                                       


Distribution:                                                                   
NASDAQ OMX Helsinki                                                             
Key media                                                                       
www.fortum.com                                                                  

Information on the full year report, including detailed quarterly information,  
is available on Fortum's website at: www.fortum.com/investors                   


--------------------------------------------------------------------------------
| JANUARY-DECEMBER 2008                                                        |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| The Interim Statement is based on the audited 2008 Financial Statements      |
| approved by the Board on 4 February 2009.                                    |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME  |      |     |    |         |          |       |        |
| STATEMENT            |      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
| MEUR                 |      | Not |    | Q4 2008 |  Q4 2007 |  2008 |   2007 |
|                      |      |   e |    |         |          |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales                |      |   4 |    |   1 602 |    1 320 | 5 636 |  4 479 |
--------------------------------------------------------------------------------
| Other income         |      |     |    |     155 |       84 |   230 |    393 |
--------------------------------------------------------------------------------
| Materials and        |      |     |    |    -652 |     -483 |    -2 | -1 572 |
| services             |      |     |    |         |          |   117 |        |
--------------------------------------------------------------------------------
| Employee benefit     |      |     |    |    -158 |     -136 |  -587 |   -495 |
| costs                |      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
| Depreciation, amortisation  |  4, |    |    -132 |     -115 |  -515 |   -451 |
| and impairment charges      |  12 |    |         |          |       |        |
--------------------------------------------------------------------------------
| Other expenses       |      |     |    |    -204 |     -150 |  -684 |   -507 |
--------------------------------------------------------------------------------
| Operating profit     |      |     |    |     611 |      520 | 1 963 |  1 847 |
--------------------------------------------------------------------------------
| Share of profit of          |  4, |    |      48 |       18 |   126 |    241 |
| associates and joint        |  13 |    |         |          |       |        |
| ventures                    |     |    |         |          |       |        |
--------------------------------------------------------------------------------
|    Interest expense  |      |     |    |     -96 |      -64 |  -351 |   -220 |
--------------------------------------------------------------------------------
|    Interest income   |      |     |    |      66 |       27 |   143 |     76 |
--------------------------------------------------------------------------------
| Fair value gains and losses on    |    |     -16 |        3 |   -11 |      7 |
| financial instruments             |    |         |          |       |        |
--------------------------------------------------------------------------------
| Other financial      |      |     |    |      -8 |       -3 |   -20 |    -17 |
| expenses - net       |      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
| Finance costs - net  |      |     |    |     -54 |      -37 |  -239 |   -154 |
--------------------------------------------------------------------------------
| Profit before income |      |     |    |     605 |      501 | 1 850 |  1 934 |
| tax                  |      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
| Income tax expense   |      |   9 |    |       2 |     -108 |  -254 |   -326 |
--------------------------------------------------------------------------------
| Profit for the       |      |     |    |     607 |      393 | 1 596 |  1 608 |
| period               |      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:     |      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
| Equity holders of    |      |     |    |     563 |      368 | 1 542 |  1 552 |
| the Company          |      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
| Minority interest    |      |     |    |      44 |       25 |    54 |     56 |
--------------------------------------------------------------------------------
|                      |      |     |    |     607 |      393 | 1 596 |  1 608 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share for profit          |         |          |       |        |
| attributable to the equity             |         |          |       |        |
--------------------------------------------------------------------------------
| holders of the company      |  10 |    |         |          |       |        |
| during the year (in € per   |     |    |         |          |       |        |
| share)                      |     |    |         |          |       |        |
--------------------------------------------------------------------------------
| Basic                |      |     |    |    0.64 |     0.41 |  1.74 |   1.74 |
--------------------------------------------------------------------------------
| Diluted              |      |     |    |    0.64 |     0.41 |  1.74 |   1.74 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET                                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                     |      |      Note |         Dec 31 |        Dec 31 |
|                          |      |           |           2008 |          2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                   |      |           |                |               |
--------------------------------------------------------------------------------
| Non-current assets       |      |           |                |               |
--------------------------------------------------------------------------------
| Intangible assets        |      |        12 |            395 |            85 |
--------------------------------------------------------------------------------
| Property, plant and      |      |        12 |         12 138 |        11 343 |
| equipment                |      |           |                |               |
--------------------------------------------------------------------------------
| Participations in associates    |     4, 13 |          2 112 |         2 853 |
| and joint ventures              |           |                |               |
--------------------------------------------------------------------------------
| Share in State Nuclear Waste    |        16 |            566 |           516 |
| Management Fund                 |           |                |               |
--------------------------------------------------------------------------------
| Other long-term          |      |           |            117 |            99 |
| investments              |      |           |                |               |
--------------------------------------------------------------------------------
| Deferred tax assets      |      |           |              2 |             3 |
--------------------------------------------------------------------------------
| Derivative financial     |      |         6 |            445 |           153 |
| instruments              |      |           |                |               |
--------------------------------------------------------------------------------
| Long-term                |      |           |            742 |           736 |
| interest-bearing         |      |           |                |               |
| receivables              |      |           |                |               |
--------------------------------------------------------------------------------
| Total non-current assets |      |           |         16 517 |        15 788 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets           |      |           |                |               |
--------------------------------------------------------------------------------
| Inventories              |      |           |            444 |           285 |
--------------------------------------------------------------------------------
| Derivative financial     |      |         6 |            761 |           140 |
| instruments              |      |           |                |               |
--------------------------------------------------------------------------------
| Trade and other          |      |           |          1 235 |         1 034 |
| receivables              |      |           |                |               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|    Bank deposits         |      |           |            588 |             - |
--------------------------------------------------------------------------------
| Cash and cash            |      |           |            733 |           427 |
| equivalents              |      |           |                |               |
--------------------------------------------------------------------------------
| Liquid funds             |      |        15 |          1 321 |           427 |
--------------------------------------------------------------------------------
| Total current assets     |      |           |          3 761 |         1 886 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets             |      |           |         20 278 |        17 674 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| EQUITY                   |      |           |                |               |
--------------------------------------------------------------------------------
| Capital and reserves     |      |           |                |               |
| attributable to the      |      |           |                |               |
--------------------------------------------------------------------------------
| Company's equity holders |      |           |                |               |
--------------------------------------------------------------------------------
| Share capital            |      |        14 |          3 044 |         3 040 |
--------------------------------------------------------------------------------
| Other restricted funds   |      |           |             90 |            78 |
--------------------------------------------------------------------------------
| Fair value and other     |      |           |            525 |           715 |
| reserves                 |      |           |                |               |
--------------------------------------------------------------------------------
| Retained earnings        |      |           |          4 295 |         4 526 |
--------------------------------------------------------------------------------
| Total                    |      |           |          7 954 |         8 359 |
--------------------------------------------------------------------------------
| Minority interest        |      |           |            457 |           292 |
--------------------------------------------------------------------------------
| Total equity             |      |           |          8 411 |         8 651 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES              |      |           |                |               |
--------------------------------------------------------------------------------
| Non-current liabilities  |      |           |                |               |
--------------------------------------------------------------------------------
| Interest-bearing         |      |        15 |          6 520 |         4 288 |
| liabilities              |      |           |                |               |
--------------------------------------------------------------------------------
| Derivative financial     |      |         6 |            120 |           139 |
| instruments              |      |           |                |               |
--------------------------------------------------------------------------------
| Deferred tax liabilities |      |           |          1 851 |         1 687 |
--------------------------------------------------------------------------------
| Nuclear provisions       |      |        16 |            566 |           516 |
--------------------------------------------------------------------------------
| Pension and other        |      |           |            250 |           144 |
| provisions               |      |           |                |               |
--------------------------------------------------------------------------------
| Other non-current        |      |           |            470 |           486 |
| liabilities              |      |           |                |               |
--------------------------------------------------------------------------------
| Total non-current        |      |           |          9 777 |         7 260 |
| liabilities              |      |           |                |               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities      |      |           |                |               |
--------------------------------------------------------------------------------
| Interest-bearing         |      |        15 |            980 |           605 |
| liabilities              |      |           |                |               |
--------------------------------------------------------------------------------
| Derivative financial     |      |         6 |            126 |           260 |
| instruments              |      |           |                |               |
--------------------------------------------------------------------------------
| Trade and other payables |      |           |            984 |           898 |
--------------------------------------------------------------------------------
| Total current            |      |           |          2 090 |         1 763 |
| liabilities              |      |           |                |               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities        |      |           |         11 867 |         9 023 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and         |      |           |         20 278 |        17 674 |
| liabilities              |      |           |                |               |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY                            |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR     | Share | Other |   Fair | Treasu | Retai | Attrib | Minor |  Total |
|          | capit | restr | value  |     ry |   ned | utable |   ity |        |
|          |    al | icted |    and | shares | earni | to the |       |        |
|          |       | funds | other  |        |   ngs | equity |       |        |
|          |       |       | reserv |        |       | holder |       |        |
|          |       |       |     es |        |       |      s |       |        |
--------------------------------------------------------------------------------
| Total    | 3 040 |    78 |    715 |      - | 4 526 |  8 359 |   292 |  8 651 |
| equity   |       |       |        |        |       |        |       |        |
| at       |       |       |        |        |       |        |       |        |
| 31.12.20 |       |       |        |        |       |        |       |        |
| 07       |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Translat |       |     6 |   -148 |        |  -561 |   -703 |   -86 |   -789 |
| ion and  |       |       |        |        |       |        |       |        |
| other    |       |       |        |        |       |        |       |        |
| differen |       |       |        |        |       |        |       |        |
| ces      |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Cash     |       |       |    440 |        |       |    440 |       |    440 |
| flow     |       |       |        |        |       |        |       |        |
| hedges   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Other    |       |       |   -484 |        |       |   -484 |     2 |   -482 |
| fair     |       |       |        |        |       |        |       |        |
| value    |       |       |        |        |       |        |       |        |
| adjustme |       |       |        |        |       |        |       |        |
| nts      |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Total    |     - |     6 |   -192 |      - |  -561 |   -747 |   -84 |   -831 |
| gains    |       |       |        |        |       |        |       |        |
| and      |       |       |        |        |       |        |       |        |
| losses   |       |       |        |        |       |        |       |        |
| not      |       |       |        |        |       |        |       |        |
| recognis |       |       |        |        |       |        |       |        |
| ed in    |       |       |        |        |       |        |       |        |
| Income   |       |       |        |        |       |        |       |        |
| statemen |       |       |        |        |       |        |       |        |
| t        |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Net      |       |       |        |        | 1 542 |  1 542 |    54 |  1 596 |
| profit   |       |       |        |        |       |        |       |        |
| for the  |       |       |        |        |       |        |       |        |
| period   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Total    |     - |     6 |   -192 |      - |   981 |    795 |   -30 |    765 |
| recognis |       |       |        |        |       |        |       |        |
| ed       |       |       |        |        |       |        |       |        |
| income   |       |       |        |        |       |        |       |        |
| for the  |       |       |        |        |       |        |       |        |
| period   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Stock    |     4 |       |        |        |       |      4 |       |      4 |
| options  |       |       |        |        |       |        |       |        |
| exercise |       |       |        |        |       |        |       |        |
| d        |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Cash     |       |       |        |        |    -1 | -1 198 |       | -1 198 |
| dividend |       |       |        |        |   198 |        |       |        |
| 1)       |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Changes between  |     6 |        |        |    -6 |      0 |       |      0 |
| restricted and   |       |        |        |       |        |       |        |
| unrestricted     |       |        |        |       |        |       |        |
| equity           |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Changes  |       |       |      2 |        |    -8 |     -6 |   195 |    189 |
| due to   |       |       |        |        |       |        |       |        |
| business |       |       |        |        |       |        |       |        |
| combinat |       |       |        |        |       |        |       |        |
| ions     |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Total    | 3 044 |    90 |    525 |      - | 4 295 |  7 954 |   457 |  8 411 |
| equity   |       |       |        |        |       |        |       |        |
| at       |       |       |        |        |       |        |       |        |
| 31.12.20 |       |       |        |        |       |        |       |        |
| 08       |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total    | 3 023 |    74 |    511 |      - | 4 300 |  7 908 |   253 |  8 161 |
| equity   |       |       |        |        |       |        |       |        |
| at       |       |       |        |        |       |        |       |        |
| 31.12.20 |       |       |        |        |       |        |       |        |
| 06       |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Translat |       |       |     10 |        |   -25 |    -15 |   -11 |    -26 |
| ion and  |       |       |        |        |       |        |       |        |
| other    |       |       |        |        |       |        |       |        |
| differen |       |       |        |        |       |        |       |        |
| ces      |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Cash     |       |       |   -168 |        |       |   -168 |    -2 |   -170 |
| flow     |       |       |        |        |       |        |       |        |
| hedges   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Other    |       |       |    362 |        |       |    362 |       |    362 |
| fair     |       |       |        |        |       |        |       |        |
| value    |       |       |        |        |       |        |       |        |
| adjustme |       |       |        |        |       |        |       |        |
| nts      |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Total    |     - |     - |    204 |      - |   -25 |    179 |   -13 |    166 |
| gains    |       |       |        |        |       |        |       |        |
| and      |       |       |        |        |       |        |       |        |
| losses   |       |       |        |        |       |        |       |        |
| not      |       |       |        |        |       |        |       |        |
| recognis |       |       |        |        |       |        |       |        |
| ed in    |       |       |        |        |       |        |       |        |
| Income   |       |       |        |        |       |        |       |        |
| statemen |       |       |        |        |       |        |       |        |
| t        |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Net      |       |       |        |        | 1 552 |  1 552 |    56 |  1 608 |
| profit   |       |       |        |        |       |        |       |        |
| for the  |       |       |        |        |       |        |       |        |
| period   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Total    |     - |     - |    204 |      - | 1 527 |  1 731 |    43 |  1 774 |
| recognis |       |       |        |        |       |        |       |        |
| ed       |       |       |        |        |       |        |       |        |
| income   |       |       |        |        |       |        |       |        |
| for the  |       |       |        |        |       |        |       |        |
| period   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Stock    |    17 |       |        |        |       |     17 |       |     17 |
| options  |       |       |        |        |       |        |       |        |
| exercise |       |       |        |        |       |        |       |        |
| d        |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Cash     |       |       |        |        |    -1 | -1 122 |       | -1 122 |
| dividend |       |       |        |        |   122 |        |       |        |
| 1)       |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Repurcha |       |       |        |   -175 |       |   -175 |       |   -175 |
| se of    |       |       |        |        |       |        |       |        |
| own      |       |       |        |        |       |        |       |        |
| shares   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Cancella |       |       |        |    175 |  -175 |      0 |       |      0 |
| tion of  |       |       |        |        |       |        |       |        |
| own      |       |       |        |        |       |        |       |        |
| shares   |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Changes between  |     4 |        |        |    -4 |      0 |       |      0 |
| restricted and   |       |        |        |       |        |       |        |
| unrestricted     |       |        |        |       |        |       |        |
| equity           |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Changes  |       |       |        |        |       |      0 |    -4 |     -4 |
| due to   |       |       |        |        |       |        |       |        |
| business |       |       |        |        |       |        |       |        |
| combinat |       |       |        |        |       |        |       |        |
| ions     |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
| Total    | 3 040 |    78 |    715 |      - | 4 526 |  8 359 |   292 |  8 651 |
| equity   |       |       |        |        |       |        |       |        |
| at       |       |       |        |        |       |        |       |        |
| 31.12.20 |       |       |        |        |       |        |       |        |
| 07       |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) See   |       |       |        |        |       |        |       |        |
| Note 11  |       |       |        |        |       |        |       |        |
| Dividend |       |       |        |        |       |        |       |        |
| s.       |       |       |        |        |       |        |       |        |
--------------------------------------------------------------------------------

Translation differences*)                                                       
The weakening of mainly RUB, SEK and NOK has impacted equity attributable to    
equity holders through translation differences with EUR -703 million. Part of   
the translation differences are arising from the NOK effect in fair valuation of
Hafslund's REC shares EUR -148 million which is shown in fair value and other   
reserves.                                                                       
Cash-flow hedges                                                                
The impact on equity attributable to equity holders from fair valuation of      
cash-flow hedges, EUR 440 million, mainly relates to cash flow hedges hedging   
electricity price. When electricity price is lower than the hedging price, the  
impact on equity is positive.                                                   
Other fair value adjustments                                                    
Other fair value adjustments EUR -484 million, mainly relates to the change in  
share price of Hafslund's REC shares during 2008 excluding exchange rate        
differences. See also Note 13 Changes in participations in associates and joint 
ventures.                                                                       
Changes in minority interest in equity                                          
The main changes to minority interest in equity are translation differences EUR 
-86 million, arising from RUB and SEK and also changes through business         
combinations which relates to the minority interest in TGC-10.                  
*) Translation of financial information from subsidiaries in foreign currency is
done using average rate for the income statement and end rate for the balance   
sheet. The exchange rate differences occurring from translation to EUR are      
booked to equity. For information regarding exchange rates used, see Note 8     
Exchange rates.                                                                 

--------------------------------------------------------------------------------
| CONDENSED CONSOLIDATED CASH FLOW STATEMENT                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR            |   | Not |   |     |  Q4 2008 |  Q4 2007 |   2008 |    2007 |
|                 |   |   e |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Cash flow from  |   |     |   |     |          |          |        |         |
| operating       |   |     |   |     |          |          |        |         |
| activities      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Operating profit    |     |   |     |      743 |      635 |  2 478 |   2 298 |
| before              |     |   |     |          |          |        |         |
| depreciations       |     |   |     |          |          |        |         |
| (EBITDA)            |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Non-cash flow items |     |   |     |     -237 |      -18 |   -275 |    -286 |
| and divesting       |     |   |     |          |          |        |         |
| activities          |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Financial items and realised  |     |      326 |      -99 |    233 |     -10 |
| foreign exchange gains and    |     |          |          |        |         |
| losses                        |     |          |          |        |         |
--------------------------------------------------------------------------------
| Taxes           |   |     |   |     |      -53 |      -63 |   -332 |    -383 |
--------------------------------------------------------------------------------
| Funds from      |   |     |   |     |      779 |      455 |  2 104 |   1 619 |
| operations      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Change in       |   |     |   |     |     -217 |     -110 |   -102 |      51 |
| working capital |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Total net cash  |   |     |   |     |      562 |      345 |  2 002 |   1 670 |
| from operating  |   |     |   |     |          |          |        |         |
| activities      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from  |   |     |   |     |          |          |        |         |
| investing       |   |     |   |     |          |          |        |         |
| activities      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Capital         |   |  4, |   |     |     -338 |     -251 | -1 018 |    -592 |
| expenditures 1) |   |  12 |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Acquisition of      |   7 |   |     |       -4 |        0 | -1 210 |     -10 |
| subsidiaries, net   |     |   |     |          |          |        |         |
| of cash acquired    |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Acquisition of  |   |  13 |   |     |      -24 |      -26 |    -32 |    -271 |
| associates 2)   |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Acquisition of  |   |     |   |     |        0 |       -2 |     -1 |      -4 |
| other long-term |   |     |   |     |          |          |        |         |
| investments     |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Proceeds from   |   |     |   |     |       28 |        2 |     37 |      14 |
| sales of fixed  |   |     |   |     |          |          |        |         |
| assets          |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Proceeds from sales |   7 |   |     |       43 |        0 |     44 |       0 |
| of subsidiaries,    |     |   |     |          |          |        |         |
| net of cash         |     |   |     |          |          |        |         |
| disposed            |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Proceeds from   |   |  13 |   |     |       10 |        2 |     34 |     304 |
| sales of        |   |     |   |     |          |          |        |         |
| associates      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Proceeds from sales of    |   |     |        0 |       29 |      0 |      29 |
| other long-term           |   |     |          |          |        |         |
| investments               |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Change in       |   |     |   |     |      -58 |      -23 |   -136 |     -79 |
| interest-bearin |   |     |   |     |          |          |        |         |
| g receivables   |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Total net cash  |   |     |   |     |     -343 |     -269 | -2 282 |    -609 |
| used in         |   |     |   |     |          |          |        |         |
| investing       |   |     |   |     |          |          |        |         |
| activities      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow       |   |     |   |     |      219 |       76 |   -280 |   1 061 |
| before          |   |     |   |     |          |          |        |         |
| financing       |   |     |   |     |          |          |        |         |
| activities      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from  |   |     |   |     |          |          |        |         |
| financing       |   |     |   |     |          |          |        |         |
| activities      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Net change in   |   |     |   |     |       43 |     -291 |  2 621 |     488 |
| loans           |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Dividends paid to   |     |   |     |        0 |        0 | -1 198 |  -1 122 |
| the Company's       |     |   |     |          |          |        |         |
| equity holders      |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Repurchase of   |   |     |   |     |        - |     -175 |      - |    -175 |
| own shares      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Other financing |   |     |   |     |       31 |        2 |   -103 |      18 |
| items           |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Total net cash  |   |     |   |     |       74 |     -464 |  1 320 |    -791 |
| used in         |   |     |   |     |          |          |        |         |
| financing       |   |     |   |     |          |          |        |         |
| activities      |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| Total net       |   |     |   |     |          |          |        |         |
| increase        |   |     |   |     |          |          |        |         |
| (+)/decrease    |   |     |   |     |          |          |        |         |
| (-) in          |   |     |   |     |          |          |        |         |
--------------------------------------------------------------------------------
| liquid funds    |   |     |   |     |      293 |     -388 |  1 040 |     270 |
--------------------------------------------------------------------------------
| 1) Capital expenditures in cash-flow do not include not yet paid             |
| investments. Capitalised borrowing costs are included in interest costs      |
| paid.                                                                        |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 2) Acquisition of associates include share issues.                           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Change in net debt     |   |    |       Q4 |       Q4 |      2008 |     2007 |
|                        |   |    |     2008 |     2007 |           |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net debt 30 September  and 31   |    6 520 |    4 456 |     4 466 |    4 345 |
| December respectively           |          |          |           |          |
--------------------------------------------------------------------------------
| Foreign exchange rate  |   |    |     -109 |      -55 |      -203 |      -73 |
| differences            |   |    |          |          |           |          |
--------------------------------------------------------------------------------
|    EBITDA              |   |    |      743 |      635 |     2 478 |    2 298 |
--------------------------------------------------------------------------------
| Paid net financial     |   |    |          |          |           |          |
| costs, taxes           |   |    |          |          |           |          |
--------------------------------------------------------------------------------
| and adjustments for non-cash    |       36 |     -180 |      -374 |     -679 |
| and divestment items            |          |          |           |          |
--------------------------------------------------------------------------------
| Change in working      |   |    |     -217 |     -110 |      -102 |       51 |
| capital                |   |    |          |          |           |          |
--------------------------------------------------------------------------------
|   Capital expenditures |   |    |     -338 |     -251 |    -1 018 |     -592 |
--------------------------------------------------------------------------------
|    Acquisitions        |   |    |      -28 |      -28 |    -1 243 |     -285 |
--------------------------------------------------------------------------------
|    Divestments         |   |    |       81 |       33 |       115 |      347 |
--------------------------------------------------------------------------------
| Change in              |   |    |      -58 |      -23 |      -136 |      -79 |
| interest-bearing       |   |    |          |          |           |          |
| receivables            |   |    |          |          |           |          |
--------------------------------------------------------------------------------
| Dividends and repurchase   |    |        0 |     -175 |    -1 198 |   -1 297 |
| of own shares              |    |          |          |           |          |
--------------------------------------------------------------------------------
| Other financing        |   |    |       31 |        2 |      -103 |       18 |
| activities             |   |    |          |          |           |          |
--------------------------------------------------------------------------------
| -Net cash flow (-      |   |    |      250 |      -97 |    -1 581 |     -218 |
| increase in net debt)  |   |    |          |          |           |          |
--------------------------------------------------------------------------------
| Loans in acquired      |   |    |        - |        0 |       272 |        7 |
| companies              |   |    |          |          |           |          |
--------------------------------------------------------------------------------
| Fair value change of bonds and  |       18 |      -32 |        63 |      -31 |
| amortised cost valuation        |          |          |           |          |
--------------------------------------------------------------------------------
| Net debt end of period |   |    |    6 179 |    4 466 |     6 179 |    4 466 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| KEY RATIOS                                                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR    |   Dec |  Sept |  June |  March | Dec 31 |   Sept |   June |  March |
|         |    31 |    30 |    30 |     31 |   2007 |     30 |     30 |     31 |
|         |  2008 |  2008 |  2008 |   2008 |        |   2007 |   2007 |   2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA, | 2 478 | 1 735 | 1 203 |    720 |  2 298 |  1 663 |  1 040 |    602 |
| MEUR    |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earning |  1.74 |  1.10 |  0.78 |   0.51 |   1.74 |   1.33 |   0.85 |   0.59 |
| s per   |       |       |       |        |        |        |        |        |
| share   |       |       |       |        |        |        |        |        |
| (basic) |       |       |       |        |        |        |        |        |
| , EUR   |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital |    15 |    15 |    15 | 16 868 | 13 544 | 13 764 | 13 503 | 12 593 |
| employe |   911 |   756 |   593 |        |        |        |        |        |
| d, MEUR |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Interes | 6 179 | 6 520 | 6 254 |  5 228 |  4 466 |  4 456 |  4 610 |  3 932 |
| t-beari |       |       |       |        |        |        |        |        |
| ng net  |       |       |       |        |        |        |        |        |
| debt,   |       |       |       |        |        |        |        |        |
| MEUR    |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 2 624 | 2 210 | 1 459 |  1 227 |    972 |    646 |    253 |    115 |
| expendi |       |       |       |        |        |        |        |        |
| ture    |       |       |       |        |        |        |        |        |
| and     |       |       |       |        |        |        |        |        |
| gross   |       |       |       |        |        |        |        |        |
| investm |       |       |       |        |        |        |        |        |
| ents in |       |       |       |        |        |        |        |        |
| shares, |       |       |       |        |        |        |        |        |
| MEUR    |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Capital | 1 108 |   716 |   408 |    175 |    655 |    382 |    236 |    100 |
| expendi |       |       |       |        |        |        |        |        |
| ture,   |       |       |       |        |        |        |        |        |
| MEUR    |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return  |  15.0 |  13.7 |  14.6 |   17.3 |   16.5 |   15.1 |   14.8 |   18.0 |
| on      |       |       |       |        |        |        |        |        |
| capital |       |       |       |        |        |        |        |        |
| employe |       |       |       |        |        |        |        |        |
| d, % 1) |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Adjuste |       |       |       |        |   14.0 |        |        |        |
| d       |       |       |       |        |        |        |        |        |
| return  |       |       |       |        |        |        |        |        |
| on      |       |       |       |        |        |        |        |        |
| capital |       |       |       |        |        |        |        |        |
| employe |       |       |       |        |        |        |        |        |
| d, % 2) |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return  |  18.7 |  15.7 |  17.2 |   21.0 |   19.1 |   17.8 |   17.2 |   21.1 |
| on      |       |       |       |        |        |        |        |        |
| shareho |       |       |       |        |        |        |        |        |
| lders'  |       |       |       |        |        |        |        |        |
| equity, |       |       |       |        |        |        |        |        |
| % 1)    |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Adjuste |       |       |       |        |   15.8 |        |        |        |
| d       |       |       |       |        |        |        |        |        |
| return  |       |       |       |        |        |        |        |        |
| on      |       |       |       |        |        |        |        |        |
| shareho |       |       |       |        |        |        |        |        |
| lders'  |       |       |       |        |        |        |        |        |
| equity, |       |       |       |        |        |        |        |        |
| % 2)    |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net     |   2.5 |   2.8 |   2.6 |    1.8 |    1.9 |    2.1 |    2.2 |    1.6 |
| debt /  |       |       |       |        |        |        |        |        |
| EBITDA  |       |       |       |        |        |        |        |        |
| 1)      |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Adjuste |       |       |       |        |    2.2 |    2.3 |        |        |
| d Net   |       |       |       |        |        |        |        |        |
| debt /  |       |       |       |        |        |        |        |        |
| EBITDA  |       |       |       |        |        |        |        |        |
| 3)      |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interes |   9.4 |   7.6 |   8.6 |   14.1 |   12.8 |   12.4 |   11.5 |   15.3 |
| t       |       |       |       |        |        |        |        |        |
| coverag |       |       |       |        |        |        |        |        |
| e       |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Funds   |  34.1 |  27.1 |  30.1 |   42.9 |   36.3 |   33.9 |   36.1 |   45.5 |
| from    |       |       |       |        |        |        |        |        |
| operati |       |       |       |        |        |        |        |        |
| ons/int |       |       |       |        |        |        |        |        |
| erest-b |       |       |       |        |        |        |        |        |
| earing  |       |       |       |        |        |        |        |        |
| net     |       |       |       |        |        |        |        |        |
| debt, % |       |       |       |        |        |        |        |        |
|  1)     |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing |    73 |    81 |    77 |     56 |     52 |     52 |     58 |     52 |
| , %     |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Equity  |  8.96 |  8.49 |  8.08 |   9.53 |   9.43 |   9.21 |   8.68 |   8.22 |
| per     |       |       |       |        |        |        |        |        |
| share,  |       |       |       |        |        |        |        |        |
| EUR     |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Equity- |    41 |    39 |    39 |     44 |     49 |     48 |     46 |     43 |
| to-asse |       |       |       |        |        |        |        |        |
| ts      |       |       |       |        |        |        |        |        |
| ratio,  |       |       |       |        |        |        |        |        |
| %       |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average |    14 |    13 |    12 |  8 356 |  8 304 |  8 305 |  8 257 |  8 165 |
| number  |   077 |   585 |   603 |        |        |        |        |        |
| of      |       |       |       |        |        |        |        |        |
| employe |       |       |       |        |        |        |        |        |
| es      |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Number  |    15 |    15 |    16 | 15 689 |  8 303 |  8 306 |  8 541 |  8 190 |
| of      |   579 |   785 |   069 |        |        |        |        |        |
| employe |       |       |       |        |        |        |        |        |
| es      |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average |   887 |   887 |   887 |    887 |    889 |    890 |    890 |    890 |
| number  |   256 |   241 |   131 |    085 |    997 |    984 |    770 |    263 |
| of      |       |       |       |        |        |        |        |        |
| shares, |       |       |       |        |        |        |        |        |
| 1 000   |       |       |       |        |        |        |        |        |
| shares  |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Diluted |   887 |   887 |   888 |    888 |    891 |    892 |    893 |    893 |
| adjuste |   839 |   986 |   165 |    177 |    395 |    815 |    140 |    252 |
| d       |       |       |       |        |        |        |        |        |
| average |       |       |       |        |        |        |        |        |
| number  |       |       |       |        |        |        |        |        |
| of      |       |       |       |        |        |        |        |        |
| shares, |       |       |       |        |        |        |        |        |
| 1 000   |       |       |       |        |        |        |        |        |
| shares  |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Number  |   887 |   887 |   887 |    887 |    886 |    892 |    891 |    890 |
| of      |   638 |   517 |   191 |    123 |    683 |    119 |    472 |    685 |
| registe |       |       |       |        |        |        |        |        |
| red     |       |       |       |        |        |        |        |        |
| shares, |       |       |       |        |        |        |        |        |
| 1 000   |       |       |       |        |        |        |        |        |
| shares  |       |       |       |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 1) Quarterly figures are annualised.                                         |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 2) Adjusted for REC and Lenenergo gains, which were arising Q1 and Q3 in     |
| 2007 respectively.                                                           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 3) Based on EBITDA excluding capital gain from the sale of Fortum's holding  |
| in Lenenergo amounting to EUR 232 million.                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
|    For definitions, see Note 24.                                             |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS                       |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 1. BASIS OF PREPARATION                                                      |
--------------------------------------------------------------------------------

The Interim Statement is based on the 2008 Financial Statements approved by the 
Board and the auditors on 4 February 2009. The condensed interim financial      
statements have been prepared in accordance with International Accounting       
Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The       
condensed interim financial report should be read in conjunction with the annual
financial statements for the year ended 31 December 2007.                       

--------------------------------------------------------------------------------
| 2. ACCOUNTING POLICIES                                                       |
--------------------------------------------------------------------------------

The accounting policies adopted are consistent with those of the Group's annual 
financial statements for the year ended 31 December 2007, except for changes    
listed below.                                                                   
                                                                                
Early adoption of IFRS 8 Operating Segments                                     
Following the acquisition of the Russian company TGC-10, Fortum has changed its 
segment reporting during Q1 2008. A new Russia segment was introduced, which    
then meant that the new segment structure has one segment based on geographical 
area, combined with segments based on type of business operations. Due to the   
change in segments structure, Fortum has early adopted IFRS 8 Operating         
segments.                                                                       
The new Russia segment includes:                                                
- TGC-10, which has been consolidated from 31 March 2008 (see Note 7)           
- the TGC-1 shareholding, which was transferred from the Power Generation       
segment                                                                         
- minor assets from shareholdings in Lenenergo spin-off companies, transferred  
from Distribution, Markets and Other segments                                   
In addition to introducing a new segment, assets and profits from the associated
company Hafslund have been transferred from Power Generation segment to Other   
segment.                                                                        
Segments Power Generation, Heat, Distribution and Markets as well as Other      
remained as previously reported with exception from the items stated above.     
Power Generation consists of the business units Generation, Portfolio Management
and Trading (PMT) as well as Service. The business units Generation and PMT have
from a financial reporting perspective one common set of financial measures. No 
separate pricing mechanism is in use between the business units. Service        
business unit provides services both internal and external, but its core        
activities refer to Generation business. The two business units Heat and Värme  
are aggregated to the Heat segment based on the similarity in the nature of     
business, customers etc.                                                        
Financial target setting, follow up and allocation of resources in the Group's  
performance management process are based on the business units' comparable      
operating profit including share of profit from associated companies and        
comparable return on net assets.                                                
Consolidation by segment is based on the same principles as for the Group as a  
whole. Inter-segment transactions are based on commercial terms. Due to the     
large number of customers  and the variety of its business activities, there are
no individual customer whose business volume is material compared with Fortum's 
total business volume. Power Generation segment is selling the produced         
electricity mainly through Nord Pool. For further information regarding the     
segments business activities and geographical areas, see the Financial          
statements 2007 Note 5 Primary Segment information.                             
Comparison numbers for 2007 have been restated, resulting in the following      
effects in operating profit and non-recurring items:                            
- the non-recurring gain on the sale of Lenenergo shares (EUR 232 million) in Q3
2007, transferred from Distribution segment to the new Russia segment           
- the gain on the sale of WGC-5 shares (EUR 12 million) in Q4 2007, transferred 
from Power Generation segment to the new Russia segment                         
- share of profits from associates regarding Hafslund during 2007, including the
gain from Hafslund's divestment of shares in REC in Q1 2007, has been           
transferred from Power Generation segment to Other segment.                     
New amendments and  interpretations                                             
The following new amendments and interpretations are mandatory for the financial
year ending 31 December 2008:                                                   
- Amendments to IAS 39 Financial instruments: Recognition and measurement and   
IFRS 7 Financial instruments: Disclosures (effective from 1 July, 2008).        
Amendment to IAS 39 allows an entity to reclassify certain non-derivative       
financial assets out of the held-for-trading category in rare circumstances as  
well as certain loans and receivables out of the held-for-trading or            
available-for-sale categories if the entity has the intention and ability to    
hold the asset for the foreseeable future or until maturity. The amendment to   
IFRS 7 requires extensive disclosures for any financial asset reclassified in   
the situations described. The amendments have no impact on the financial        
position or performance of Fortum  as no assets have been reclassified.         
- IFRIC 11 IFRS 2: Group and treasury share transactions. IFRIC 11 requires a   
share-based payment arrangement in which the entity receives goods or services  
as consideration for its own equity instruments (i.e. treasury shares) to be    
accounted for as equity-settled share-based payment transaction even though if  
the entity buys the instruments from another party, or the shareholders provide 
the equity instruments needed. Fortum does not currently have such arrangements.
- IFRIC 14  IAS 19 - The limit on a defined benefit asset, minimum funding      
requirements and their interaction provides guidance how to assess the limit  in
IAS 19 on the amount of the surplus that can be recognised as an asset in       
particular when there is a minimum funding requirement.                         
IFRIC 14 is not relevant to Fortum as Group's pension arrangements do not have  
minimum funding requirements.                                                   
- IFRIC 12 Service concession arrangements is not relevant to Fortum as no      
member of the Group is a service concession operator providing for public sector
services. The interpretation has not yet been endorsed in the EU.               
Accounting for associated companies                                             
In Q2 Fortum started equity accounting regarding Territorial Generating Company 
1, TGC-1 since 2007 IFRS Financial Statements became available. For further     
information on accounting for Fortum's shareholdings in TGC-1 and also regarding
accounting for the shareholding in Hafslund, see Note 13 below. In Q4 Fortum    
received information which enabled accounting for nuclear related assets and    
liabilities regarding its Swedish associated nuclear companies according to     
Fortum accounting principles, see Note 16 below.                                

--------------------------------------------------------------------------------
| 3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS                              |
--------------------------------------------------------------------------------

The preparation of Interim financial statements requires management to make     
judgements, estimates and assumptions that affect the reported amounts of assets
and liabilities, income and expense. Annual results may differ from these       
estimates.                                                                      
In preparing these interim financial statements, the significant judgements made
by management in applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the annual        
financial statements as at and for the year ended 31 December 2007.             

--------------------------------------------------------------------------------
| 4. SEGMENT INFORMATION                                                       |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| SALES                    |    Q4 2008 |   Q4 2007 |        2008 |       2007 |
| MEUR                     |            |           |             |            |
--------------------------------------------------------------------------------
| Power sales excluding    |        886 |       697 |       3 291 |      2 370 |
| indirect taxes           |            |           |             |            |
--------------------------------------------------------------------------------
| Heating sales            |        440 |       352 |       1 298 |      1 096 |
--------------------------------------------------------------------------------
| Network transmissions    |        193 |       194 |         746 |        729 |
--------------------------------------------------------------------------------
| Other sales              |         83 |        77 |         301 |        284 |
--------------------------------------------------------------------------------
| Total                    |      1 602 |     1 320 |       5 636 |      4 479 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SALES BY SEGMENT         |    Q4 2008 |   Q4 2007 |        2008 |       2007 |
| MEUR                     |            |           |             |            |
--------------------------------------------------------------------------------
| Power Generation         |        736 |       685 |       2 892 |      2 350 |
--------------------------------------------------------------------------------
| - of which internal      |          5 |         5 |           0 |        323 |
--------------------------------------------------------------------------------
| Heat                     |        463 |       439 |       1 466 |      1 356 |
--------------------------------------------------------------------------------
| - of which internal      |         -3 |        -1 |           0 |         38 |
--------------------------------------------------------------------------------
| Distribution             |        206 |       206 |         789 |        769 |
--------------------------------------------------------------------------------
| - of which internal      |          3 |         3 |          10 |          9 |
--------------------------------------------------------------------------------
| Markets                  |        531 |       482 |       1 922 |      1 683 |
--------------------------------------------------------------------------------
| - of which internal      |         50 |        49 |         177 |        155 |
--------------------------------------------------------------------------------
| Russia                   |        197 |         - |         489 |          - |
--------------------------------------------------------------------------------
| - of which internal      |          - |         - |           0 |          - |
--------------------------------------------------------------------------------
| Other                    |         21 |        21 |          83 |         81 |
--------------------------------------------------------------------------------
| - of which internal      |         21 |        20 |          82 |         72 |
--------------------------------------------------------------------------------
| Netting of Nord Pool     |       -476 |      -437 |      -1 736 |     -1 163 |
| transactions 1)          |            |           |             |            |
--------------------------------------------------------------------------------
| Eliminations             |        -76 |       -76 |        -269 |       -597 |
--------------------------------------------------------------------------------
| Total                    |      1 602 |     1 320 |       5 636 |      4 479 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 1) Sales and purchases with Nord Pool is netted on Group level on an hourly  |
| basis and posted either as revenue or cost depending on if Fortum is a net   |
| seller or net buyer during any particular hour.                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| OPERATING PROFIT BY      |    Q4 2008 |   Q4 2007 |        2008 |       2007 |
| SEGMENTS                 |            |           |             |            |
| MEUR                     |            |           |             |            |
--------------------------------------------------------------------------------
| Power Generation         |        470 |       351 |       1 599 |      1 115 |
--------------------------------------------------------------------------------
| Heat                     |        155 |       121 |         307 |        294 |
--------------------------------------------------------------------------------
| Distribution             |         61 |        51 |         248 |        233 |
--------------------------------------------------------------------------------
| Markets                  |        -29 |         2 |         -35 |         12 |
--------------------------------------------------------------------------------
| Russia                   |        -19 |        12 |         -91 |        244 |
--------------------------------------------------------------------------------
| Other                    |        -27 |       -17 |         -65 |        -51 |
--------------------------------------------------------------------------------
| Total                    |        611 |       520 |       1 963 |      1 847 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| COMPARABLE OPERATING PROFIT  | Q4 2008 |  Q4 2007 |        2008 |       2007 |
| BY SEGMENTS                  |         |          |             |            |
| MEUR                         |         |          |             |            |
--------------------------------------------------------------------------------
| Power Generation        |    |     378 |      363 |       1 528 |      1 095 |
--------------------------------------------------------------------------------
| Heat                    |    |     109 |      120 |         250 |        290 |
--------------------------------------------------------------------------------
| Distribution            |    |      63 |       50 |         248 |        231 |
--------------------------------------------------------------------------------
| Markets                 |    |       0 |       -1 |         -33 |         -1 |
--------------------------------------------------------------------------------
| Russia                  |    |     -20 |        - |         -92 |          - |
--------------------------------------------------------------------------------
| Other                   |    |     -22 |      -16 |         -56 |        -51 |
--------------------------------------------------------------------------------
| Comparable operating    |    |     508 |      516 |       1 845 |      1 564 |
| profit                  |    |         |          |             |            |
--------------------------------------------------------------------------------
| Non-recurring items     |    |      68 |       13 |          85 |        250 |
--------------------------------------------------------------------------------
| Other items effecting   |    |      35 |       -9 |          33 |         33 |
| comparability           |    |         |          |             |            |
--------------------------------------------------------------------------------
| Operating profit        |    |     611 |      520 |       1 963 |      1 847 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| NON-RECURRING ITEMS BY   |    Q4 2008 |   Q4 2007 |        2008 |       2007 |
| SEGMENTS                 |            |           |             |            |
| MEUR                     |            |           |             |            |
--------------------------------------------------------------------------------
| Power Generation         |          7 |         0 |          18 |          2 |
--------------------------------------------------------------------------------
| Heat                     |         60 |         1 |          64 |          2 |
--------------------------------------------------------------------------------
| Distribution             |          0 |         0 |           2 |          0 |
--------------------------------------------------------------------------------
| Markets                  |          - |        -1 |           - |          0 |
--------------------------------------------------------------------------------
| Russia                   |          1 |        12 |           1 |        244 |
--------------------------------------------------------------------------------
| Other                    |          0 |         1 |           0 |          2 |
--------------------------------------------------------------------------------
| Total                    |         68 |        13 |          85 |        250 |
--------------------------------------------------------------------------------

Non-recurring items mainly include capital gains and losses. The main capital   
gain in 2008 was gain on sale of Jyväskylän Energiantuotanto Oy  (2007: gain on 
sale of Lenenergo shares EUR 232 million).                                      

--------------------------------------------------------------------------------
| OTHER ITEMS EFFECTING              |    | Q4 2008 | Q4 2007 |  2008 |   2007 |
| COMPARABILITY BY SEGMENTS          |    |         |         |       |        |
| MEUR                               |    |         |         |       |        |
--------------------------------------------------------------------------------
| Power Generation 1)   |      |     |    |      85 |     -12 |    53 |     18 |
--------------------------------------------------------------------------------
| Heat                  |      |     |    |     -14 |       0 |    -7 |      2 |
--------------------------------------------------------------------------------
| Distribution          |      |     |    |      -2 |       1 |    -2 |      2 |
--------------------------------------------------------------------------------
| Markets               |      |     |    |     -29 |       4 |    -2 |     13 |
--------------------------------------------------------------------------------
| Russia                |      |     |    |       - |       - |     - |      - |
--------------------------------------------------------------------------------
| Other                 |      |     |    |      -5 |      -2 |    -9 |     -2 |
--------------------------------------------------------------------------------
| Total                 |      |     |    |      35 |      -9 |    33 |     33 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Including effects from    |     |    |         |         |       |        |
| the accounting of Fortum's   |     |    |         |         |       |        |
| part of                      |     |    |         |         |       |        |
--------------------------------------------------------------------------------
| the Finnish State Nuclear Waste         |     -12 |      -7 |   -19 |     17 |
| Management Fund with (EUR million):     |         |         |       |        |
--------------------------------------------------------------------------------

Other items effecting comparability mainly include effects from financial       
derivatives hedging future cash-flows where hedge accounting is not applied     
according to IAS 39. In Power Generation segment there are also effects from the
accounting of Fortum's part of the Finnish State Nuclear Waste Management Fund  
where the asset in the balance sheet cannot exceed the related liabilities      
according to IFRIC interpretation 5.                                            

--------------------------------------------------------------------------------
| DEPRECIATION, AMORTISATION AND |         Q4 2008 |     Q4 |   2008 |    2007 |
| IMPAIRMENT CHARGES BY SEGMENTS |                 |   2007 |        |         |
| MEUR                           |                 |        |        |         |
--------------------------------------------------------------------------------
| Power Generation   |   |   |       |    |     24 |     24 |     97 |     103 |
--------------------------------------------------------------------------------
| Heat               |   |   |       |    |     41 |     43 |    169 |     163 |
--------------------------------------------------------------------------------
| Distribution       |   |   |       |    |     41 |     43 |    165 |     162 |
--------------------------------------------------------------------------------
| Markets            |   |   |       |    |      1 |      2 |      7 |      11 |
--------------------------------------------------------------------------------
| Russia             |   |   |       |    |     22 |      - |     67 |       - |
--------------------------------------------------------------------------------
| Other              |   |   |       |    |      3 |      3 |     10 |      12 |
--------------------------------------------------------------------------------
| Total              |   |   |       |    |    132 |    115 |    515 |     451 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| SHARE OF PROFITS IN ASSOCIATES    |   Q4 2008 | Q4 2007 |    2008 |     2007 |
| AND JOINT VENTURES BY SEGMENTS    |           |         |         |          |
| MEUR                              |           |         |         |          |
--------------------------------------------------------------------------------
| Power Generation |   |   |   |    |        39 |      -3 |      26 |      -23 |
| 1), 2)           |   |   |   |    |           |         |         |          |
--------------------------------------------------------------------------------
| Heat             |   |   |   |    |         4 |       8 |      12 |       24 |
--------------------------------------------------------------------------------
| Distribution     |   |   |   |    |         3 |       5 |      16 |       18 |
--------------------------------------------------------------------------------
| Markets          |   |   |   |    |         0 |       0 |       5 |        0 |
--------------------------------------------------------------------------------
| Russia           |   |   |   |    |         0 |       - |      19 |        - |
--------------------------------------------------------------------------------
| Other            |   |   |   |    |         2 |       8 |      48 |      222 |
--------------------------------------------------------------------------------
| Total            |   |   |   |    |        48 |      18 |     126 |      241 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Including effects    |      |              14 |     -1 |      9 |      -7 |
| from the accounting of  |      |                 |        |        |         |
| Fortum's associates     |      |                 |        |        |         |
| part of Finnish and     |      |                 |        |        |         |
| Swedish Nuclear Waste   |      |                 |        |        |         |
| Management Funds with   |      |                 |        |        |         |
| (EUR million):          |      |                 |        |        |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2) The main part of the associated companies in Power Generation are power   |
| production companies from which Fortum purchases produced electricity at     |
| production costs including interest costs and income taxes.                  |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| PARTICIPATIONS IN ASSOCIATES AND JOINT VENTURES BY  |   Dec 31  |    Dec 31  |
| SEGMENTS                                            |      2008 |       2007 |
| MEUR                                                |           |            |
--------------------------------------------------------------------------------
| Power Generation       |      |     |   |           |       818 |        806 |
--------------------------------------------------------------------------------
| Heat                   |      |     |   |           |       160 |        158 |
--------------------------------------------------------------------------------
| Distribution           |      |     |   |           |       210 |        229 |
--------------------------------------------------------------------------------
| Markets                |      |     |   |           |        12 |          8 |
--------------------------------------------------------------------------------
| Russia                 |      |     |   |           |       429 |        455 |
--------------------------------------------------------------------------------
| Other                  |      |     |   |           |       483 |      1 197 |
--------------------------------------------------------------------------------
| Total                  |      |     |   |           |     2 112 |      2 853 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CAPITAL EXPENDITURE BY   |  Q4 2008 |    Q4 2007 |        2008 |        2007 |
| SEGMENTS                 |          |            |             |             |
| MEUR                     |          |            |             |             |
--------------------------------------------------------------------------------
| Power Generation         |       49 |         32 |         134 |          93 |
--------------------------------------------------------------------------------
| Heat 1)                  |      144 |        120 |         408 |         309 |
--------------------------------------------------------------------------------
| Distribution 2)          |       93 |        117 |         296 |         236 |
--------------------------------------------------------------------------------
| Markets                  |        0 |          1 |           3 |           3 |
--------------------------------------------------------------------------------
| Russia                   |      104 |          - |         256 |           - |
--------------------------------------------------------------------------------
| Other                    |        2 |          3 |          11 |          14 |
--------------------------------------------------------------------------------
| Total                    |      392 |        273 |       1 108 |         655 |
--------------------------------------------------------------------------------

1) Increase is mainly due to ongoing large CHP-plant construction projects in   
Espoo in Finland, Tarto in Estonia and Czestochowa in Poland.                   
2) Increase is mainly due to installation of new meters in Fortum's network     
areas in Sweden (Automatic Meter Management, AMM).                              

--------------------------------------------------------------------------------
| GROSS INVESTMENTS IN       |  Q4 2008 |   Q4 2007 |       2008 |        2007 |
| SHARES BY SEGMENTS         |          |           |            |             |
| MEUR                       |          |           |            |             |
--------------------------------------------------------------------------------
| Power           |          |        0 |        52 |          0 |          52 |
| Generation      |          |          |           |            |             |
--------------------------------------------------------------------------------
| Heat            |          |        0 |         1 |         23 |          18 |
--------------------------------------------------------------------------------
| Distribution    |          |        0 |         1 |          0 |           1 |
--------------------------------------------------------------------------------
| Markets         |          |        0 |   -       |          0 |           0 |
--------------------------------------------------------------------------------
| Russia 1)       |          |       22 |   -       |      1 492 |         245 |
--------------------------------------------------------------------------------
| Other           |          |        0 |        -1 |          1 |           1 |
--------------------------------------------------------------------------------
| Total           |          |       22 |        53 |      1 516 |         317 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) See Note 7   |          |          |           |            |             |
| Acquisitions    |          |          |           |            |             |
| and disposals.  |          |          |           |            |             |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| NET ASSETS BY SEGMENTS       |           Dec 31 |                     Dec 31 |
| MEUR                         |             2008 |                       2007 |
--------------------------------------------------------------------------------
| Power Generation             |            5 331 |                      5 599 |
--------------------------------------------------------------------------------
| Heat                         |            3 468 |                      3 507 |
--------------------------------------------------------------------------------
| Distribution                 |            3 032 |                      3 239 |
--------------------------------------------------------------------------------
| Markets                      |              188 |                        247 |
--------------------------------------------------------------------------------
| Russia                       |            2 205 |                        456 |
--------------------------------------------------------------------------------
| Other                        |              796 |                      1 237 |
--------------------------------------------------------------------------------
| Total                        |           15 020 |                     14 285 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| RETURN ON NET ASSETS  BY     |           Dec 31 |                     Dec 31 |
| SEGMENTS                     |             2008 |                       2007 |
| %                            |                  |                            |
--------------------------------------------------------------------------------
| Power Generation             |             29.6 |                       19.2 |
--------------------------------------------------------------------------------
| Heat                         |              8.9 |                        9.3 |
--------------------------------------------------------------------------------
| Distribution                 |              8.1 |                        7.7 |
--------------------------------------------------------------------------------
| Markets                      |            -14.0 |                        6.9 |
--------------------------------------------------------------------------------
| Russia                       |             -3.7 |                       66.3 |
--------------------------------------------------------------------------------
| Other                        |             -1.8 |                       17.1 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| COMPARABLE RETURN ON NET ASSETS    |       Dec 31 |                   Dec 31 |
| BY SEGMENTS                        |         2008 |                     2007 |
| %                                  |              |                          |
--------------------------------------------------------------------------------
| Power Generation         |   |     |         28.0 |                     18.9 |
--------------------------------------------------------------------------------
| Heat                     |   |     |          7.3 |                      9.2 |
--------------------------------------------------------------------------------
| Distribution             |   |     |          8.2 |                      7.6 |
--------------------------------------------------------------------------------
| Markets                  |   |     |        -15.3 |                     -0.6 |
--------------------------------------------------------------------------------
| Russia                   |   |     |         -3.8 |                      0.0 |
--------------------------------------------------------------------------------
| Other 1)                 |   |     |         -1.7 |                     -2.1 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 1) Excluding approximately EUR 180 million gain in relation to Hafslund's    |
| divestment of REC-shares Q1 2007 included in the share of profits of         |
| associates and joint ventures.                                               |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Return on net assets is calculated by dividing the sum of operating profit   |
| and share of profit of associated companies and joint ventures with average  |
| net assets. Average net assets are calculated using the opening balance and  |
| end of each quarter values.                                                  |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| ASSETS BY SEGMENTS          |                 Dec 31 |                Dec 31 |
| MEUR                        |                   2008 |                  2007 |
--------------------------------------------------------------------------------
| Power Generation            |                  5 732 |                 6 154 |
--------------------------------------------------------------------------------
| Heat                        |                  3 923 |                 3 928 |
--------------------------------------------------------------------------------
| Distribution                |                  3 546 |                 3 778 |
--------------------------------------------------------------------------------
| Markets                     |                    663 |                   630 |
--------------------------------------------------------------------------------
| Russia                      |                  2 476 |                   456 |
--------------------------------------------------------------------------------
| Other                       |                    997 |                 1 392 |
--------------------------------------------------------------------------------
| Assets included in Net      |                 17 337 |                16 338 |
| assets                      |                        |                       |
--------------------------------------------------------------------------------
| Interest-bearing            |                    799 |                   747 |
| receivables                 |                        |                       |
--------------------------------------------------------------------------------
| Deferred taxes              |                      2 |                     3 |
--------------------------------------------------------------------------------
| Other assets                |                    819 |                   159 |
--------------------------------------------------------------------------------
| Liquid funds                |                  1 321 |                   427 |
--------------------------------------------------------------------------------
| Total assets                |                 20 278 |                17 674 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES BY SEGMENTS     |                 Dec 31 |                Dec 31 |
| MEUR                        |                   2008 |                  2007 |
--------------------------------------------------------------------------------
| Power Generation            |                    401 |                   555 |
--------------------------------------------------------------------------------
| Heat                        |                    455 |                   421 |
--------------------------------------------------------------------------------
| Distribution                |                    514 |                   539 |
--------------------------------------------------------------------------------
| Markets                     |                    475 |                   383 |
--------------------------------------------------------------------------------
| Russia                      |                    271 |                     - |
--------------------------------------------------------------------------------
| Other                       |                    201 |                   155 |
--------------------------------------------------------------------------------
| Liabilities included in Net |                  2 317 |                 2 053 |
| assets                      |                        |                       |
--------------------------------------------------------------------------------
| Deferred tax liabilities    |                  1 851 |                 1 687 |
--------------------------------------------------------------------------------
| Other liabilities           |                    199 |                   390 |
--------------------------------------------------------------------------------
| Total liabilities included  |                  4 367 |                 4 130 |
| in Capital employed         |                        |                       |
--------------------------------------------------------------------------------
| Interest-bearing            |                  7 500 |                 4 893 |
| liabilities                 |                        |                       |
--------------------------------------------------------------------------------
| Total equity                |                  8 411 |                 8 651 |
--------------------------------------------------------------------------------
| Total equity and            |                 20 278 |                17 674 |
| liabilities                 |                        |                       |
--------------------------------------------------------------------------------

Other assets and Other liabilities not included in segment's Net assets consists
mainly of income tax receivables and liabilities, accrued interest expenses,    
derivative receivables and liabilities qualifying as hedges and receivables and 
liabilities for interest rate derivatives.                                      

--------------------------------------------------------------------------------
| AVERAGE NUMBER OF EMPLOYEES |                 2008 |                    2007 |
--------------------------------------------------------------------------------
| Power Generation            |                3 591 |                   3 475 |
--------------------------------------------------------------------------------
| Heat                        |                2 422 |                   2 302 |
--------------------------------------------------------------------------------
| Distribution                |                1 222 |                   1 060 |
--------------------------------------------------------------------------------
| Markets                     |                  766 |                     936 |
--------------------------------------------------------------------------------
| Russia                      |                5 566 |                       - |
--------------------------------------------------------------------------------
| Other                       |                  510 |                     531 |
--------------------------------------------------------------------------------
| Total                       |               14 077 |                   8 304 |
--------------------------------------------------------------------------------

Average number of employees is based on a monthly average for the whole period  
in question.                                                                    

--------------------------------------------------------------------------------
| NUMBER OF EMPLOYEES         |               Dec 31 |                  Dec 31 |
|                             |                 2008 |                    2007 |
--------------------------------------------------------------------------------
| Power Generation            |                3 520 |                   3 511 |
--------------------------------------------------------------------------------
| Heat                        |                2 318 |                   2 279 |
--------------------------------------------------------------------------------
| Distribution                |                1 336 |                   1 063 |
--------------------------------------------------------------------------------
| Markets                     |                  635 |                     935 |
--------------------------------------------------------------------------------
| Russia                      |                7 262 |                       - |
--------------------------------------------------------------------------------
| Other                       |                  508 |                     515 |
--------------------------------------------------------------------------------
| Total                       |               15 579 |                   8 303 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 5. QUARTERLY SEGMENT INFORMATION                                             |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Extended quarterly information is available on Fortum's website              |
| www.fortum.com/investors/financial information.                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERL |    Q4 |    Q3 |    Q2 |     Q1 |     Q4 |    Q3 |     Q2 |     Q1 |
| Y SALES  |  2008 |  2008 |  2008 |   2008 |   2007 |  2007 |   2007 |   2007 |
| BY       |       |       |       |        |        |       |        |        |
| SEGMENTS |       |       |       |        |        |       |        |        |
| MEUR     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Power    |   736 |   718 |   721 |    717 |    685 |   502 |    522 |    641 |
| Generati |       |       |       |        |        |       |        |        |
| on       |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| - of     |     5 |   -79 |    21 |     53 |      5 |    70 |     92 |    156 |
| which    |       |       |       |        |        |       |        |        |
| internal |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Heat     |   463 |   226 |   284 |    493 |    439 |   186 |    252 |    479 |
--------------------------------------------------------------------------------
| - of     |    -3 |    -4 |     - |      7 |     -1 |     4 |     11 |     24 |
| which    |       |       |       |        |        |       |        |        |
| internal |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Distribu |   206 |   171 |   180 |    232 |    206 |   166 |    172 |    225 |
| tion     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| - of     |     3 |     2 |     2 |      3 |      3 |     2 |      2 |      2 |
| which    |       |       |       |        |        |       |        |        |
| internal |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Markets  |   531 |   461 |   411 |    519 |    482 |   331 |    351 |    519 |
--------------------------------------------------------------------------------
| - of     |    50 |    61 |    34 |     32 |     49 |    30 |     32 |     44 |
| which    |       |       |       |        |        |       |        |        |
| internal |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Russia   |   197 |   140 |   152 | -      | -      | -     | -      | -      |
|          |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| - of     |    -  | -     | -     | -      | -      | -     | -      | -      |
| which    |       |       |       |        |        |       |        |        |
| internal |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Other    |    21 |    21 |    21 |     20 |     21 |    19 |     22 |     19 |
--------------------------------------------------------------------------------
| - of     |    21 |    20 |    21 |     20 |     20 |    17 |     19 |     16 |
| which    |       |       |       |        |        |       |        |        |
| internal |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Netting  |  -476 |  -465 |  -369 |   -426 |   -437 |  -221 |   -204 |   -301 |
| of Nord  |       |       |       |        |        |       |        |        |
| Pool     |       |       |       |        |        |       |        |        |
| transact |       |       |       |        |        |       |        |        |
| ions     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Eliminat |   -76 |     0 |   -78 |   -115 |    -76 |  -123 |   -156 |   -242 |
| ions     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Total    | 1 602 | 1 272 | 1 322 |  1 440 |  1 320 |   860 |    959 |  1 340 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERL |    Q4 |    Q3 |    Q2 |     Q1 |     Q4 |    Q3 |     Q2 |     Q1 |
| Y        |  2008 |  2008 |  2008 |   2008 |   2007 |  2007 |   2007 |   2007 |
| OPERATIN |       |       |       |        |        |       |        |        |
| G PROFIT |       |       |       |        |        |       |        |        |
| BY       |       |       |       |        |        |       |        |        |
| SEGMENTS |       |       |       |        |        |       |        |        |
| MEUR     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Power    |   470 |   438 |   260 |    431 |    351 |   221 |    243 |    300 |
| Generati |       |       |       |        |        |       |        |        |
| on       |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Heat     |   155 |   -15 |    37 |    130 |    121 |    -2 |     33 |    142 |
--------------------------------------------------------------------------------
| Distribu |    61 |    50 |    51 |     86 |     51 |    50 |     53 |     79 |
| tion     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Markets  |   -29 |   -17 |    31 |    -20 |      2 |    15 |      7 |    -12 |
--------------------------------------------------------------------------------
| Russia   |   -19 |   -39 |   -33 |      0 |     12 |   232 |      - |      - |
--------------------------------------------------------------------------------
| Other    |   -27 |   -22 |     2 |    -18 |    -17 |    -6 |     -9 |    -19 |
--------------------------------------------------------------------------------
| Total    |   611 |   395 |   348 |    609 |    520 |   510 |    327 |    490 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERL |    Q4 |    Q3 |    Q2 |     Q1 |     Q4 |    Q3 |     Q2 |     Q1 |
| Y        |  2008 |  2008 |  2008 |   2008 |   2007 |  2007 |   2007 |   2007 |
| COMPARAB |       |       |       |        |        |       |        |        |
| LE       |       |       |       |        |        |       |        |        |
| OPERATIN |       |       |       |        |        |       |        |        |
| G PROFIT |       |       |       |        |        |       |        |        |
| BY       |       |       |       |        |        |       |        |        |
| SEGMENTS |       |       |       |        |        |       |        |        |
| MEUR     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Power    |   378 |   371 |   384 |    395 |    363 |   185 |    217 |    330 |
| Generati |       |       |       |        |        |       |        |        |
| on       |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Heat     |   109 |    -7 |    27 |    121 |    120 |    -3 |     36 |    137 |
--------------------------------------------------------------------------------
| Distribu |    63 |    49 |    49 |     87 |     50 |    51 |     52 |     78 |
| tion     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Markets  |     0 |    -8 |   -15 |    -10 |     -1 |    11 |      3 |    -14 |
--------------------------------------------------------------------------------
| Russia   |   -20 |   -39 |   -33 |      - |      - |     - |      - |      - |
--------------------------------------------------------------------------------
| Other    |   -22 |   -13 |    -9 |    -12 |    -16 |    -6 |    -10 |    -19 |
--------------------------------------------------------------------------------
| Total    |   508 |   353 |   403 |    581 |    516 |   238 |    298 |    512 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERL |    Q4 |    Q3 |    Q2 |     Q1 |     Q4 |    Q3 |     Q2 |     Q1 |
| Y        |  2008 |  2008 |  2008 |   2008 |   2007 |  2007 |   2007 |   2007 |
| NON-RECU |       |       |       |        |        |       |        |        |
| RRING    |       |       |       |        |        |       |        |        |
| ITEMS    |       |       |       |        |        |       |        |        |
| BY       |       |       |       |        |        |       |        |        |
| SEGMENTS |       |       |       |        |        |       |        |        |
| MEUR     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Power    |     7 |    11 |     0 |      0 |      0 |     0 |      2 |      0 |
| Generati |       |       |       |        |        |       |        |        |
| on       |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Heat     |    60 |     2 |     0 |      2 |      1 |     0 |      1 |      0 |
--------------------------------------------------------------------------------
| Distribu |     0 |     2 |     0 |      0 |      0 |    -1 |      0 |      1 |
| tion     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Markets  |     - |     0 |     0 |      - |     -1 |     1 |      0 |      0 |
--------------------------------------------------------------------------------
| Russia   |     1 |     0 |     - |      - |     12 |   232 |      - |      - |
--------------------------------------------------------------------------------
| Other    |     0 |     0 |     0 |      0 |      1 |     0 |      1 |      0 |
--------------------------------------------------------------------------------
| Total    |    68 |    15 |     0 |      2 |     13 |   232 |      4 |      1 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| QUARTERL |    Q4 |    Q3 |    Q2 |     Q1 |     Q4 |    Q3 |     Q2 |     Q1 |
| Y OTHER  |  2008 |  2008 |  2008 |   2008 |   2007 |  2007 |   2007 |   2007 |
| ITEMS    |       |       |       |        |        |       |        |        |
| EFFECTIN |       |       |       |        |        |       |        |        |
| G        |       |       |       |        |        |       |        |        |
| COMPARAB |       |       |       |        |        |       |        |        |
| ILITY    |       |       |       |        |        |       |        |        |
| MEUR     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Power    |    85 |    56 |  -124 |     36 |    -12 |    36 |     24 |    -30 |
| Generati |       |       |       |        |        |       |        |        |
| on 1)    |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Heat     |   -14 |   -10 |    10 |      7 |      0 |     1 |     -4 |      5 |
--------------------------------------------------------------------------------
| Distribu |    -2 |    -1 |     2 |     -1 |      1 |     0 |      1 |      0 |
| tion     |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------
| Markets  |   -29 |    -9 |    46 |    -10 |      4 |     3 |      4 |      2 |
--------------------------------------------------------------------------------
| Russia   |     - |     - |     - |      - |      - |     - |      - |      - |
--------------------------------------------------------------------------------
| Other    |    -5 |    -9 |    11 |     -6 |     -2 |     0 |      0 |      0 |
--------------------------------------------------------------------------------
| Total    |    35 |    27 |   -55 |     26 |     -9 |    40 |     25 |    -23 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 1)       |   -12 |    10 |    -8 |     -9 |     -7 |    33 |     -4 |     -5 |
| Includin |       |       |       |        |        |       |        |        |
| g        |       |       |       |        |        |       |        |        |
| effects  |       |       |       |        |        |       |        |        |
| from the |       |       |       |        |        |       |        |        |
| accounti |       |       |       |        |        |       |        |        |
| ng of    |       |       |       |        |        |       |        |        |
| Fortum's |       |       |       |        |        |       |        |        |
| part of  |       |       |       |        |        |       |        |        |
| the      |       |       |       |        |        |       |        |        |
| Finnish  |       |       |       |        |        |       |        |        |
| State    |       |       |       |        |        |       |        |        |
| Nuclear  |       |       |       |        |        |       |        |        |
| Waste    |       |       |       |        |        |       |        |        |
| Manageme |       |       |       |        |        |       |        |        |
| nt Fund  |       |       |       |        |        |       |        |        |
| with     |       |       |       |        |        |       |        |        |
| (EUR     |       |       |       |        |        |       |        |        |
| million) |       |       |       |        |        |       |        |        |
| :        |       |       |       |        |        |       |        |        |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 6. FINANCIAL RISK MANAGEMENT                                                 |
--------------------------------------------------------------------------------

The Group has not made any significant change in policies regarding risk        
management during the period. Aspects of the Group's financial risk management  
objectives and policies are consistent with that disclosed in the consolidated  
financial statements as at and for the year ended 31 December 2007.             
The tables below disclose the notional values or volumes and net fair values for
the Group's derivatives used in different areas mainly for hedging purposes.    

--------------------------------------------------------------------------------
| DERIVATIVES                                                                  |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR        |              |       Dec 31 |                          Dec 31  |
|             |              |         2008 |                             2007 |
--------------------------------------------------------------------------------
| Interest    |     Notional |    Net fair  |      Notional |        Net fair  |
| and         |        value |        value |         value |            value |
| currency    |              |              |               |                  |
| derivatives |              |              |               |                  |
|             |              |              |               |                  |
--------------------------------------------------------------------------------
| Interest    |        2 993 |          -12 |         3 500 |              -16 |
| rate swaps  |              |              |               |                  |
--------------------------------------------------------------------------------
| Forward     |        4 521 |          370 |         4 452 |               30 |
| foreign     |              |              |               |                  |
| exchange    |              |              |               |                  |
| contracts   |              |              |               |                  |
--------------------------------------------------------------------------------
| Forward     |          230 |            0 |           741 |                0 |
| rate        |              |              |               |                  |
| agreements  |              |              |               |                  |
--------------------------------------------------------------------------------
| Interest    |        2 240 |          218 |         3 293 |               66 |
| rate and    |              |              |               |                  |
| currency    |              |              |               |                  |
| swaps       |              |              |               |                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Electricity |       Volume |    Net fair  |        Volume |        Net fair  |
| derivatives |              |        value |               |            value |
|             |              |              |               |                  |
--------------------------------------------------------------------------------
|             |          TWh |         MEUR |           TWh |             MEUR |
--------------------------------------------------------------------------------
| Sales swaps |          165 |        2 102 |           119 |             -651 |
--------------------------------------------------------------------------------
| Purchase    |          123 |       -1 692 |            88 |              461 |
| swaps       |              |              |               |                  |
--------------------------------------------------------------------------------
| Purchased   |            2 |            0 |             0 |                0 |
| options     |              |              |               |                  |
--------------------------------------------------------------------------------
| Written     |            4 |          -14 |             2 |               -1 |
| options     |              |              |               |                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Oil         |       Volume |    Net fair  |        Volume |        Net fair  |
| derivatives |              |        value |               |            value |
|             |              |              |               |                  |
--------------------------------------------------------------------------------
|             |     1000 bbl |         MEUR |      1000 bbl |             MEUR |
--------------------------------------------------------------------------------
| Sales swaps |        1 047 |          -14 |           460 |               -4 |
| and futures |              |              |               |                  |
--------------------------------------------------------------------------------
| Purchase    |        1 230 |           11 |           795 |                9 |
| swaps and   |              |              |               |                  |
| futures     |              |              |               |                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Coal        |       Volume |    Net fair  |        Volume |        Net fair  |
| derivatives |              |        value |               |            value |
--------------------------------------------------------------------------------
|             |           kt |         MEUR |            kt |             MEUR |
--------------------------------------------------------------------------------
| Sold        |          276 |            7 |           150 |               -1 |
--------------------------------------------------------------------------------
| Bought      |          641 |          -16 |           375 |                1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CO2         |       Volume |    Net fair  |        Volume |        Net fair  |
| emission    |              |        value |               |            value |
| allowance   |              |              |               |                  |
| derivatives |              |              |               |                  |
--------------------------------------------------------------------------------
|             |        ktCO2 |         MEUR |         ktCO2 |             MEUR |
--------------------------------------------------------------------------------
| Sold        |          592 |            4 |         3 101 |              -13 |
--------------------------------------------------------------------------------
| Bought      |          592 |           -4 |         3 121 |               13 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share       |     Notional |    Net fair  |      Notional |        Net fair  |
| derivatives |        value |        value |         value |            value |
--------------------------------------------------------------------------------
|             |         MEUR |         MEUR |          MEUR |             MEUR |
--------------------------------------------------------------------------------
| Share       |           37 |           24 |            36 |               66 |
| forwards 1) |              |              |               |                  |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 1) Cash-settled share forwards are used as a hedging instrument for Fortum   |
| Group's performance share arrangement.                                       |
--------------------------------------------------------------------------------

On 20 February 2008, Fortum, the Russian Territorial Generating Company No. 1   
(TGC-1) and ECF Project Ltd signed an agreement according to which Fortum will  
purchase approximately 5 million tonnes of emission reduction units (ERU) from  
TGC-1. The ERUs will come from Joint Implementation projects conducted at       
TGC-1's production facilities during the Kyoto Period (2008-2012) of the        
European Emissions Trading Scheme. The agreement has been classified as an own  
use contract and valued at cost.                                                

--------------------------------------------------------------------------------
| 7. ACQUISITIONS AND DISPOSALS                                                |
--------------------------------------------------------------------------------

Total Gross investment in subsidiary shares (see definition of key figures)     
amounted to EUR 1,506 (18) million of which EUR 1,492 million represents the    
acquisition of TGC-10.                                                          
In Latvia, Fortum acquired 100% of the shares in Jelgavas Kogeneracija SIA at   
the end of March. The acquired company provides district heating to the city of 
Jelgava. The annual heat sales are 200 GWh, the sales EUR 10 million, and the   
number of employees 170. The gross investment was EUR 10 million.               
In Sweden, Fortum acquired additional 11.22% shares in Hofors Energi AB. After  
this acquisition Fortum's total ownership of the shares in Hofors Energi AB is  
60%. The acquired company provides district heating to the Hofors area. The     
annual heat sales are 130 GWh, the sales EUR 7 million, and Fortum has already  
earlier taken care of operations in the company. The gross investment was EUR 3 
million.                                                                        
In the end of December 2008 Fortum sold its 60% ownership in Jyväskylän         
Energiantuotanto Oy to Jyväskylän Energia. The transaction included both        
subsidiary shares, land on which the power plant is located on and assets       
related to business operations.  In July 2008 Fortum sold its 100% ownership in 
Recotech AB to Tellestate AB.                                                   
Acquisition of TGC-10                                                           
In March Fortum acquired 76.49% of TGC-10 which is a Russian territorial        
generating company founded in 2006 and operating in the Urals and West Siberia  
region. The total installed capacity is 3,000 MW electricity and 15,800 MW heat 
with an annual production of 18 TWh electricity and 27 TWh heat. The company is 
committed and contractually obligated to an extensive investment plan to further
increase its electricity capacity with 2,300 MW by 2013. The contractual        
obligations of TGC-10's investment programme include penalty clauses tied to the
availability of the new generating capacity. Total sales during 2007 in TGC-10  
were EUR 723 million and operating profit was EUR 26 million based on 2007      
published IFRS Financial statements.                                            
The acquisition was made through an acquisition of shares and through           
participation in a share issue. On 20 March 2008 Fortum paid for 47.42% of the  
shares in TGC-10 through a share issue for approximately EUR 1.3 billion. The   
capital received by TGC-10 will remain in the company and will be used to       
finance its committed capacity investment programme planned at EUR 2.2 billion. 
In October 2008, Fortum estimated the value of the investment programme in new  
capacity to be approximately EUR 2.5 billion. The value for the remaining part  
of the programme, calculated at year-end exchange rates, is estimated to be EUR 
2.0 billion from January 2009 onwards.                                          
On 26 March Fortum paid for an additional 29.07% of the shares in TGC-10 from   
United Energy Systems of Russia (RAO UES). 29 April Fortum filed the mandatory  
public tender offer to TGC-10 minority shareholders. The offer was valid from 30
April until 18 October 2008.  The tender offer covered 23.51% of the share      
capital of TGC-10 and has been launched at a price of 111.8 roubles per share to
be fully paid in cash. At the end of December, Fortum's ownership in TGC-10 was 
93.4% including the shares held by TGC-10's 100% owned subsidiary and by that   
time Fortum had paid EUR 465 million for share purchases under the MTO.         
The gross investment for the total transaction was EUR 1,492 million, excluding 
cash in TGC-10 (mainly coming from the share issue) and including               
interest-bearing liabilities in the company. The purchase price allocation is   
based on the balance sheet as of 31 March 2008 of TGC-10. The fair value        
adjustments are still preliminary, since all valuation effects have not been    
finalised, in particular regarding potential obligations. Fortum Q4 2008 Interim
report includes the income statement effect of TGC-10 from 1 April 2008 onwards.

--------------------------------------------------------------------------------
| MEUR           |     |     |          |                 |         |   TGC-10 |
--------------------------------------------------------------------------------
| Purchase       |     |     |          |                 |         |          |
| consideration  |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
|      Cash paid |     |     |          |                 |         |    2 533 |
--------------------------------------------------------------------------------
| Direct costs   |     |     |          |                 |         |        8 |
| relating to    |     |     |          |                 |         |          |
| the            |     |     |          |                 |         |          |
| acquisition    |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Total purchase |     |     |          |                 |         |    2 541 |
| consideration  |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Fair value of  |     |     |          |                 |         |    2 211 |
| the acquired   |     |     |          |                 |         |          |
| assets         |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Translation    |     |     |          |                 |         |       -9 |
| differences    |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Goodwill       |     |     |          |                 |         |      339 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                |     |     |          |        Acquired | Allocat |    Total |
|                |     |     |          |                 |      ed |          |
--------------------------------------------------------------------------------
| Fair value of  |     |     |          |     Book Values |    Fair |    Value |
| the acquired   |     |     |          |                 |  Values |          |
| net            |     |     |          |                 |         |          |
| identifiable   |     |     |          |                 |         |          |
| assets:        |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Cash and cash  |     |     |          |           1 321 |         |    1 321 |
| equivalents    |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Property,      |     |     |          |             625 |   1 022 |    1 647 |
| plant and      |     |     |          |                 |         |          |
| equipment      |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Other assets   |     |     |          |             182 |         |      182 |
--------------------------------------------------------------------------------
| Non-interest-b |     |     |          |            -107 |    -391 |     -498 |
| earing         |     |     |          |                 |         |          |
| liabilities    |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Interest-beari |     |     |          |            -272 |         |     -272 |
| ng liabilities |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Net            |     |     |          |           1 749 |     631 |    2 380 |
| identifiable   |     |     |          |                 |         |          |
| assets         |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Minority       |     |     |          |            -116 |     -53 |     -169 |
| interests      |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Total          |     |     |          |           1 633 |     578 |    2 211 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross          |     |     |          |                 |         |          |
| investment in  |     |     |          |                 |         |          |
| TGC-10:        |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Purchase       |     |     |          |                 |         |    2 541 |
| consideration  |     |     |          |                 |         |          |
| settled in     |     |     |          |                 |         |          |
| cash           |     |     |          |                 |         |          |
--------------------------------------------------------------------------------
| Cash and cash equivalents in      |       |   |         |         |    1 321 |
| subsidiaries acquired             |       |   |         |         |          |
--------------------------------------------------------------------------------
| Cash        |     |     |     |                         |         |    1 220 |
| outflow on  |     |     |     |                         |         |          |
| acquisition |     |     |     |                         |         |          |
--------------------------------------------------------------------------------
| Interest-be |     |     |     |                         |         |      272 |
| aring debt  |     |     |     |                         |         |          |
| in          |     |     |     |                         |         |          |
| subsidiarie |     |     |     |                         |         |          |
| s acquired  |     |     |     |                         |         |          |
--------------------------------------------------------------------------------
| Total       |     |     |     |                         |         |    1 492 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 8. EXCHANGE RATES                                                            |
--------------------------------------------------------------------------------

The balance sheet date rate is based on exchange rate published by the European 
Central Bank for the closing date. The average exchange rate is calculated as an
average of each months ending rate from the European Central Bank during the    
year and ending rate previous year.                                             
Key exchange rates for Fortum Group applied in the accounts:                    
--------------------------------------------------------------------------------
| Aver | Dec 31 |   Sept |   June |   March | Dec 31 |  Sept |   June |  March |
| age  |   2008 |     30 |     30 |      31 |   2007 |    30 |     30 |     31 |
| rate |        |   2008 |   2008 |    2008 |        |  2007 |   2007 |   2007 |
--------------------------------------------------------------------------------
| Swed | 9.6647 | 9.4559 | 9.4088 |  9.4265 | 9.2475 | 9.218 | 9.2020 | 9.1787 |
| en   |        |        |        |         |        |     5 |        |        |
| (SEK |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
| Norw | 8.2605 | 8.0187 | 7.9843 |  7.9998 | 8.0253 | 8.046 | 8.1205 | 8.1563 |
| ay   |        |        |        |         |        |     6 |        |        |
| (NOK |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
| Pola | 3.5328 | 3.4402 | 3.4926 |  3.5676 | 3.7792 | 3.828 | 3.8439 | 3.8858 |
| nd   |        |        |        |         |        |     5 |        |        |
| (PLN |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
| Russ | 36.690 | 36.567 | 36.634 | 36.4660 | 35.075 | 34.83 | 34.699 | 34.563 |
| ia   |      5 |      0 |      8 |         |      9 |    20 |      7 |      3 |
| (RUB |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Bala | Dec 31 |   Sept |   June |   March | Dec 31 |  Sept |   June |  March |
| nce  |   2008 |     30 |     30 |      31 |   2007 |    30 |     30 |     31 |
| shee |        |   2008 |   2008 |    2008 |        |  2007 |   2007 |   2007 |
| t    |        |        |        |         |        |       |        |        |
| date |        |        |        |         |        |       |        |        |
| rate |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
| Swed | 10.870 | 9.7943 | 9.4703 |  9.3970 | 9.4415 | 9.214 | 9.2525 | 9.3462 |
| en   |      0 |        |        |         |        |     7 |        |        |
| (SEK |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
| Norw | 9.7500 | 8.3330 | 8.0090 |  8.0510 | 7.9580 | 7.718 | 7.9725 | 8.1190 |
| ay   |        |        |        |         |        |     5 |        |        |
| (NOK |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
| Pola | 4.1535 | 3.3967 | 3.3513 |  3.5220 | 3.5935 | 3.773 | 3.7677 | 3.8668 |
| nd   |        |        |        |         |        |     0 |        |        |
| (PLN |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------
| Russ | 41.283 | 36.409 | 36.947 | 37.1130 | 35.986 | 35.34 | 34.807 | 34.658 |
| ia   |      0 |      5 |      7 |         |      0 |    90 |      0 |      0 |
| (RUB |        |        |        |         |        |       |        |        |
| )    |        |        |        |         |        |       |        |        |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 9. INCOME TAX EXPENSE                                                        |
--------------------------------------------------------------------------------

Tax rate according to the income statement for the year 2008 was 13.7% (16.9%). 
The tax rate for the year is lower than in the comparable period 2007 mainly due
to the lowering of corporate tax rates in Sweden and Russia, leading to a       
reduction in deferred tax liabilities. The positive one-time effect was EUR 113 
million. The tax rate for the full year 2008, excluding the impact of tax rate  
changes, non taxable capital gains and share of profits of associated companies 
was 22.1%.                                                                      
The tax rate of 2007 was effected by Hafslund's sale of REC shares in March     
2007, which increased the share of profits from associates for the period with  
approximately EUR 180 million. This amount is shown on the line share of profit 
of associates and joint ventures after tax. During 2007 Fortum received also    
substantial non taxable capital gains (EUR 232 million), which is another major 
reason for low tax rate also in 2007. The tax rate for the full year 2007,      
excluding the increased share of profits from associates and non taxable sales  
gains was 22.3%.                                                                

--------------------------------------------------------------------------------
| 10. EARNINGS PER SHARE                                                       |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| The calculation of basic and diluted earnings per share is based on the      |
| following data:                                                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
|                         |         |               |        2008 |       2007 |
--------------------------------------------------------------------------------
| Earnings (MEUR):        |         |               |             |            |
--------------------------------------------------------------------------------
| Profit attributable to the equity holders of the  |       1 542 |      1 552 |
| Company                                           |             |            |
--------------------------------------------------------------------------------
| Number of shares   |                        |     |             |            |
| (thousands):       |                        |     |             |            |
--------------------------------------------------------------------------------
| Weighted average number of shares for the   |     |             |            |
| purpose of                                  |     |             |            |
--------------------------------------------------------------------------------
| basic earnings per |                  |           |     887 256 |    889 997 |
| share              |                  |           |             |            |
--------------------------------------------------------------------------------
| Effect of dilutive |                  |           |         583 |      1 398 |
| share options      |                  |           |             |            |
--------------------------------------------------------------------------------
| Weighted average number of |   |                  |             |            |
| shares for the purpose of  |   |                  |             |            |
--------------------------------------------------------------------------------
| diluted earnings per share        |               |     887 839 |    891 395 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 11. DIVIDEND PER SHARE                                                       |
--------------------------------------------------------------------------------

A dividend in respect of 2008 of EUR 1.00 per share, amounting to EUR 888       
million based on the number of shares registered as of 4 February 2009, is to be
proposed at the Annual General Meeting on 7 April 2009. These financial         
statements do not reflect this dividend.                                        
The Annual General Meeting on 1 April 2008 decided to distribute a dividend of  
EUR 1.35 per share to the shareholders of which EUR 0.77 per share was paid from
Fortum's recurring earnings and EUR 0.58 per share as additional dividend in    
order to steer the company's capital structure towards the target. The total    
dividend was EUR 1,198 million based on the amount of shares registered as of 4 
April 2008. The dividend was paid out 11 April 2008.                            
In 2007, the total dividend amounted to  EUR 1.26 per share, of which EUR 0.73  
per share was in accordance with the Group's dividend policy. An additional     
dividend of EUR 0.53 per share was decided to steer Fortum's capital structure  
towards agreed target.  The total dividend was EUR 1,122 million based on the   
amount of shares registered as of 2 April 2007. The dividend was paid on 11     
April 2007.                                                                     
--------------------------------------------------------------------------------
| 12. CHANGES IN INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR             |      |            |    |           Dec 31 |        Dec 31 |
|                  |      |            |    |             2008 |          2007 |
--------------------------------------------------------------------------------
| Opening balance  |      |            |    |           11 428 |        11 567 |
--------------------------------------------------------------------------------
| Increase through            |    |        |            1 980 |            16 |
| acquisition of subsidiary   |    |        |                  |               |
| companies                   |    |        |                  |               |
--------------------------------------------------------------------------------
| Capital             |   |            |    |            1 087 |           654 |
| expenditures        |   |            |    |                  |               |
--------------------------------------------------------------------------------
| Capitalised         |   |            |    |               21 |             1 |
| borrowing costs     |   |            |    |                  |               |
--------------------------------------------------------------------------------
| Changes of nuclear  |   |            |    |               22 |            25 |
| asset retirement    |   |            |    |                  |               |
| cost                |   |            |    |                  |               |
--------------------------------------------------------------------------------
| Changes of emission |   |            |    |               14 |            -9 |
| rights              |   |            |    |                  |               |
--------------------------------------------------------------------------------
| Disposals           |   |            |    |              -14 |           -11 |
--------------------------------------------------------------------------------
| Depreciation,       |   |            |    |             -515 |          -451 |
| amortisation and    |   |            |    |                  |               |
| impairment          |   |            |    |                  |               |
--------------------------------------------------------------------------------
| Sale of subsidiary  |   |            |    |              -31 |             - |
| shares              |   |            |    |                  |               |
--------------------------------------------------------------------------------
| Translation         |   |            |    |           -1 459 |          -364 |
| differences         |   |            |    |                  |               |
--------------------------------------------------------------------------------
| Closing balance     |   |            |    |           12 533 |        11 428 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 13. CHANGES IN PARTICIPATIONS IN ASSOCIATES AND JOINT VENTURES               |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                   |    |     |            |     Dec 31 |         Dec 31 |
|                        |    |     |            |       2008 |           2007 |
--------------------------------------------------------------------------------
| Opening balance        |    |     |            |      2 853 |          2 197 |
--------------------------------------------------------------------------------
| Share of profits of    |    |     |            |        126 |            241 |
| associates and joint   |    |     |            |            |                |
| ventures               |    |     |            |            |                |
--------------------------------------------------------------------------------
| Investments            |    |     |            |          7 |              1 |
--------------------------------------------------------------------------------
| Share issues and       |    |     |            |          1 |            294 |
| shareholders'          |    |     |            |            |                |
| contributions          |    |     |            |            |                |
--------------------------------------------------------------------------------
| Increase through acquisition of      |    |    |         36 |              - |
| subsidiary companies                 |    |    |            |                |
--------------------------------------------------------------------------------
| Reclassifications      |    |     |            |         -3 |              - |
--------------------------------------------------------------------------------
| Divestments            |    |     |            |        -13 |            -68 |
--------------------------------------------------------------------------------
| Dividend income        |    |     |            |        -51 |           -178 |
| received               |    |     |            |            |                |
--------------------------------------------------------------------------------
| Fair value and other   |    |     |            |       -628 |            366 |
| changes in equity      |    |     |            |            |                |
--------------------------------------------------------------------------------
| Translation            |    |     |            |       -216 |              0 |
| differences            |    |     |            |            |                |
--------------------------------------------------------------------------------
| Closing balance        |    |     |            |      2 112 |          2 853 |
--------------------------------------------------------------------------------

Share of profits from associates and joint ventures                             
Share of profits from associates in Q4 EUR 48 million (2007: 18 million) mainly 
represents Fortum's share of profits in Swedish nuclear associates Forsmarks    
Kraftgrupp AB and OKG AB EUR 47 million (2007: 2 million), of which EUR 42      
million is due to accounting of nuclear related assets and liabilities, see Note
16.  Fortum's share of profits for 2008 amounts to EUR 126 million (2007: 241   
million), of which Hafslund represents EUR 48 million (2007: 219 million). See  
below for accounting principles regarding Hafslund.                             
Investments                                                                     
In Lithuania, Fortum acquired a 14.73% share in UAB Klaipedos Energija from     
Stadtwerke Leipzig GmbH on 29 February 2008. Fortum now owns a 19.63% share of  
the company. UAB Klaipedos Energija generates and distributes district heat to  
the residents and industries in the cities of Klaipeda and Gargzdai. The sales  
of the company are around EUR 27 million, annual heat sales 1 terawatthour (TWh)
and power sales 20 gigawatthours (GWh). The investment was EUR 7 million. The   
main part of the EUR 245 million investment in 2007 represents the share issue  
in TGC-1 with EUR 243 million.                                                  
Increase through acquisition of subsidiaries                                    
Through the acquisition of TGC-10 in the end of March 2008, Fortum acquired a   
shareholding in Kurgan Generating Company.                                      
Divestments                                                                     
In Q3 2008 Fortum sold its 50% shareholding in Panjin Liaohe Fortum Thermal     
Power Company Co in China and in Q4 its 30% shareholding in Polartest Oy and its
33% shareholding in the Herbrechtingen GmbH. In Q3 2007 Fortum sold its slightly
over 1/3 stake in JSC Lenenergo for approximately EUR 295 million. The sales    
gain of EUR 232 million is presented in Other income.                           
Dividends received                                                              
Fortum has received EUR 39 million in dividends from Hafslund and Gasum in 2008.
In 2007 Fortum received  EUR 178 million in dividends from associates, of which 
EUR 145 million from Hafslund following Hafslund's divestment of REC shares in  
March 2007.                                                                     
Fair value and other changes in equity                                          
Fair value and other changes in equity mainly represents the fair value change  
in Hafslund's shareholding in REC. In Q4 the fair value change of the REC shares
was                                                                             
EUR -141 million (2007: 61 million). The fair value change of the REC shares    
during 2008 was EUR -656 million (2007: 353 million).                           
Accounting for the share of profits from Hafslund ASA                           
According to Fortum Group accounting policies the share of profits from Hafslund
has been included in Fortum Group figures based on the previous quarter         
information since  Hafslund's interim reports are published later than Fortum's 
interim reports. Hafslund will publish January-December 2008 results on 6       
February 2009.                                                                  
When calculating the share of profits in Hafslund, Fortum has in accordance with
Fortum's accounting policies reclassified Hafslund's accounting treatment for   
the shareholding in Renewable Energy Corporation (REC). Hafslund has classified 
the shareholding in REC as financial assets at fair value through profit and    
loss while Fortum has classified the REC shareholding as available for sale     
financial assets with fair value changes recorded directly through equity, only 
when Hafslund divests shares in REC, the cumulative fair value change effects   
Fortum's income statement. In Fortum the same accounting treatment as relates to
REC applies to Hafslund's shareholding in Fesil Holding AS.                     
Since REC has been listed on the Oslo Stock Exchange as of 9 May 2006, Fortum is
accounting for the fair value change in REC based on the closing price on the   
Oslo Stock Exchange at each closing date. The amount of shares is based on the  
amount published by Hafslund in the previous quarter if other information is not
available.                                                                      
Hafslund sold 35 million shares in REC in March 2007. In accordance with the    
accounting policy Fortum recognised approximately EUR 180 million in relation to
Hafslund's divestment of REC shares as a part of the share of profits from      
associates and joint ventures in Q1 2007. The cumulative fair value change in   
Fortum's equity, based on the remaining number of shares reported by Hafslund,  
was EUR 126 million at 31 December 2008, which represents a decrease with EUR   
667 million from 31 December 2007.                                              
Hafslund accounted for a value growth in Q2 2008 after establishing a new       
ownership structure in Fesil Holding AS. The share of this value growth EUR 12  
million has been recorded directly to equity in 2008 in Fortum.                 
Accounting for the share of profits from TGC-1                                  
Fortum owns 25.7% of the shares in Territorial Generating Company 1, TGC-1.     
TGC-1 was formed in late 2006 by mergers of several Russian companies. TGC-1 has
published IFRS 2007 Financial statements in June 2008. Fortum has in Q2 2008    
reporting started to account TGC-1 according to the equity method as TGC-1      
prepares IFRS financial statements annually. The share of profits will be       
accounted for once a year in Q2 based on published IFRS Financial Statements for
the previous year.                                                              

--------------------------------------------------------------------------------
| 14. SHARE CAPITAL                                                            |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR       |   |      |   Number of |     Share |     Number of |      Share |
|            |   |      |      shares |   capital |        shares |    capital |
|            |   |      |      Dec 31 |    Dec 31 |        Dec 31 |     Dec 31 |
|            |   |      |        2008 |      2008 |          2007 |       2007 |
--------------------------------------------------------------------------------
| Registered |   |      | 886 683 058 |     3 040 |   887 393 646 |      3 023 |
| shares at  |   |      |             |           |               |            |
| 1 January  |   |      |             |           |               |            |
--------------------------------------------------------------------------------
| Shares subscribed     |     955 022 |         4 |     5 199 412 |         17 |
| with options and      |             |           |               |            |
| registered at the end |             |           |               |            |
| of the period         |             |           |               |            |
--------------------------------------------------------------------------------
| Cancellati |   |      |           - |         - |    -5 910 000 |          - |
| on of own  |   |      |             |           |               |            |
| shares     |   |      |             |           |               |            |
--------------------------------------------------------------------------------
| Registered |   |      | 887 638 080 |     3 044 |   886 683 058 |      3 040 |
| shares at  |   |      |             |           |               |            |
| the end of |   |      |             |           |               |            |
| the period |   |      |             |           |               |            |
--------------------------------------------------------------------------------
| Unregister |   |      |      56 000 |           |        50 000 |            |
| ed shares  |   |      |             |           |               |            |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 15. INTEREST-BEARING NET DEBT                                                |
--------------------------------------------------------------------------------

The reported interest-bearing liabilities was EUR 7,500 million. No major new   
financing transactions were made in the Group during the fourth quarter.        
During the fourth quarter total liquid funds increased by EUR 142 million from  
EUR 1,179 million to EUR 1,321 million including cash and bank deposits held by 
TGC-10 amounting to EUR 1,020 million. The funds in TGC-10 are committed to the 
investment program (see further in the Acquisition of TGC-10, note 7). The      
liquid funds of EUR 1,321 million consist of cash EUR 733 million (including    
bank deposits less than three months to maturity) and bank deposits EUR 588     
million (over three months to maturity).                                        
During the first quarter of  2008 Fortum raised a syndicated loan facility of   
EUR 3,500 million. The loan facility is structured as a 3 year term loan of EUR 
2,000 million to be used for acquisition financing of TGC-10, and as a 5 year   
revolving credit facility of EUR 1,500 million to be used for general corporate 
purposes. As per the end of the 4th quarter EUR 2, 600 million of these         
facilities was drawn. Fortum total undrawn committed credit facilities were EUR 
2.3 billion as end of December 2008.                                            
On December 31, 2008 the average duration of the debt portfolio including       
derivatives was 1.6 years ( 2007: 1.3 years) and  the average interest rate on  
December 31, 2008 of loans and derivatives was 4.7% (2007:  4.6% ). Average     
cumulative interest rate on loans and derivatives for 2008 were 5.3% (2007:     
4.3%). Approximately 64% (2007: 67%) was on floating rate basis or will be      
refinanced during the coming 12 months.                                         

--------------------------------------------------------------------------------
| 16. NUCLEAR RELATED ASSETS AND LIABILITIES                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                         |     |   |   |        |     Dec 31  |  Dec 31  |
|                              |     |   |   |        |        2008 |     2007 |
--------------------------------------------------------------------------------
| Carrying values in the       |     |   |   |        |             |          |
| balance sheet:               |     |   |   |        |             |          |
--------------------------------------------------------------------------------
| Nuclear provisions           |     |   |   |        |         566 |      516 |
--------------------------------------------------------------------------------
| Share in the      |   |                    |        |         566 |      516 |
| State Nuclear     |   |                    |        |             |          |
| Waste Management  |   |                    |        |             |          |
| Fund              |   |                    |        |             |          |
--------------------------------------------------------------------------------
| Legal liability and actual share of the    |        |             |          |
| State Nuclear Waste Management Fund:       |        |             |          |
--------------------------------------------------------------------------------
| Liability for nuclear waste management     |        |         895 |      816 |
| according to the Nuclear Energy Act        |        |             |          |
--------------------------------------------------------------------------------
| Funding obligation target       |      |   |    |       |     767 |      698 |
--------------------------------------------------------------------------------
| Fortum's share of the State Nuclear Waste  |    |       |     728 |      673 |
| Management Fund                            |    |       |         |          |
--------------------------------------------------------------------------------

Nuclear related provisions                                                      
Fortum submitted the yearly proposal for the nuclear waste management liability 
regarding the Loviisa nuclear power plant to the Ministry of Employment and the 
Economy in September. The liability is calculated according to the Nuclear      
Energy Act and will be decided by Ministry of Employment and the Economy by the 
end of January 2009. The proposal is based on an updated cost estimate, which is
done every year, and on a technical plan, which is made every third year and was
updated last time in 2007. The future costs are estimated to increase mainly due
to the new limits for free release of materials set by authorities (STUK) which 
has caused larger scope for future decommissioning of the nuclear power plant.  
The legal liability at the end of 2008, based on the proposal to the Ministry of
Employment and the Economy and calculated according to the Nuclear Energy Act,  
is EUR 895 million. The provision in the balance sheet related to nuclear waste 
management is based on cash-flows for future costs which uses the same basis as 
the legal liability. The carrying value of the nuclear provision, calculated    
according to IAS37, have increased by EUR 50 million compared to 31 December    
2007, totalling EUR 566 million as of 31 December 2008. The main reason for the 
difference between the carrying value of the provision and the legal liability  
is the fact that the legal liability is not discounted.                         
Fortum's share in the State Nuclear Waste Management Fund                       
Fortum contributes funds to the State Nuclear Waste Management Fund based on the
yearly funding obligation target decided by the governmental authorities in     
January each year in connection with the decision of size of the legal          
liability. The estimated funding obligation target based on the proposed legal  
liability and approved periodising of the payments to the Fund is EUR 767       
million. The fund is from an IFRS perspective overfunded with EUR 162 million,  
since Fortum's share of the Fund as of 31 December 2008 is EUR 728 million and  
the carrying value in the balance sheet is EUR 566 million.                     
Effects to comparable operating profit and operating profit                     
Following the updated cost estimate, Fortum had in Q3 2008 a one-time effect to 
Comparable operating profit of EUR -3 million in the Power Generation segment   
mainly due to higher nuclear waste management costs related to already spent    
fuel. In Q3 2007 a one-time effect of EUR -13 million was reported following the
update of technical plan. Any cost increase which is related to already spent   
fuel is always recognised immediately in Comparable operating profit.           
Operating profit in Power Generation segment is affected by the accounting      
principle for Fortum's share of the Finnish Nuclear Waste Management Fund, since
the carrying value of the Fund in Fortum's balance sheet can maximum be equal to
the amount of the provisions according to IFRS. As long as the Fund is          
overfunded from an IFRS perspective, the effects to operating profit from this  
adjustment will be positive if the provisions increase more than the Fund and   
negative if actual value of the fund increases more than the provisions. This   
accounting effect is not included in Comparable operating profit in Fortum      
financial reporting, see Other items effecting comparability in Note 4 and 5.   
Fortum had an effect from this adjustment in 2008 of EUR -19 million compared to
EUR +17 million in 2007.                                                        
Associated companies                                                            
Fortum has at year-end received the cash-flow information for its Swedish       
nuclear associated companies from Swedish Nuclear Fuel and Waste Management Co  
(SKB). The cash-flow information is based on the 2008 technical plan and cost   
estimates, which are also the basis for the legal fee and guarantee calculations
to be decided for 2010 and 2011. Fortum has accounted for its share of the      
effects from nuclear related assets and provisions according to Fortum          
accounting principles. The effect in share of profits is EUR 43 million in Q4.  
The positive effect includes EUR +16 million due to the increase of the carrying
value of the Swedish Nuclear Waste Fund as a result of the increased provision  
due to the new technical plan in 2008. The Swedish Fund has been overfunded from
IFRS perspective, but is almost equal to the provision at year-end.             

--------------------------------------------------------------------------------
| 17. PLEDGED ASSETS                                                           |
--------------------------------------------------------------------------------

Pledged assets for debt                                                         
Finnish participants in the State Nuclear Waste Management Fund are allowed to  
borrow from the Fund. In Q1 2008 Fortum increased the reborrowing from the Fund 
(see Note 15) and therefore pledged additional Kemijoki shares as a security.   
The total amount of shares pledged, have a carrying value of EUR 208 million    
(145 million) as of 31 December 2008 (and 31 December 2007 respectively).       
Pledged assets for other commitments                                            
Fortum has given real estate mortgages in Naantali and Inkoo power plants in    
Finland, total value of EUR 206 million, as a security to the State Nuclear     
Waste Management Fund for the uncovered part of the legal liability,            
uncertainties and unexpected events. The size of the securities given is updated
yearly in Q2 based on the decisions regarding the legal liabilities and the     
funding target which takes place around year-end every year. The amount of real 
estate mortgages given as a security have increased with EUR 103 million during 
Q2 2008.                                                                        

--------------------------------------------------------------------------------
| MEUR                                |            Dec 31  |           Dec 31  |
|                                     |               2008 |              2007 |
--------------------------------------------------------------------------------
| On own behalf                       |                    |                   |
--------------------------------------------------------------------------------
| For debt                            |                    |                   |
--------------------------------------------------------------------------------
| Pledges                             |                229 |               170 |
--------------------------------------------------------------------------------
| Real estate mortgages               |                137 |               138 |
--------------------------------------------------------------------------------
| For other commitments               |                    |                   |
--------------------------------------------------------------------------------
| Real estate mortgages               |                206 |               103 |
--------------------------------------------------------------------------------
| On behalf of associated companies   |                                        |
| and joint ventures                  |                                        |
--------------------------------------------------------------------------------
| Pledges and real estate mortgages   |                  2 |                 3 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| 18. OPERATING LEASE COMMITMENTS                                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                               |   |     |         Dec 31  |     Dec 31  |
|                                    |   |     |            2008 |        2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Due within a year                  |   |     |              28 |          21 |
--------------------------------------------------------------------------------
| Due after one year and within five |   |     |              47 |          31 |
| years                              |   |     |                 |             |
--------------------------------------------------------------------------------
| Due after five years               |   |     |              86 |          69 |
--------------------------------------------------------------------------------
| Total                              |   |     |             161 |         121 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| The increase in operating lease commitments is due to the acquisition of     |
| TGC-10.                                                                      |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 19. CAPITAL COMMITMENTS                                                      |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                                |            Dec 31  |           Dec 31  |
|                                     |               2008 |              2007 |
--------------------------------------------------------------------------------
| Property, plant and equipment       |              1 321 |               425 |
--------------------------------------------------------------------------------
| Intangible assets                   |                  7 |                11 |
--------------------------------------------------------------------------------
| Total                               |              1 328 |               436 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

The increase in capital commitments from 2007 is mainly due to the acquisition  
of TGC-10 in March 2008, representing approximately EUR 940 million at year-end 
2008, of which approximately EUR 390 million refers to investments in 2009. See 
Note 7 Acquisitions and disposals, for information regarding TGC-10's investment
program.                                                                        
Other contracted future investments refers mainly to the installation of new    
meters for automatic meter reading in Distribution business in Sweden and CHP   
plants being built in the Heat business in Finland, Estonia and Poland.         

--------------------------------------------------------------------------------
| 20. CONTINGENT LIABILITIES                                                   |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                       |   |    |         |      Dec 31  |       Dec 31  |
|                            |   |    |         |         2008 |          2007 |
--------------------------------------------------------------------------------
| On own behalf              |   |    |         |              |               |
--------------------------------------------------------------------------------
| Other contingent           |   |    |         |          362 |           224 |
| liabilities                |   |    |         |              |               |
--------------------------------------------------------------------------------
| On behalf of associated        |    |         |              |               |
| companies and joint ventures   |    |         |              |               |
--------------------------------------------------------------------------------
| Guarantees                 |   |    |         |          565 |           235 |
--------------------------------------------------------------------------------
| Other contingent           |   |    |         |          125 |           125 |
| liabilities                |   |    |         |              |               |
--------------------------------------------------------------------------------
| On behalf of others        |   |    |         |              |               |
--------------------------------------------------------------------------------
| Guarantees                 |   |    |         |           10 |            10 |
--------------------------------------------------------------------------------
| Other contingent           |   |    |         |            1 |             1 |
| liabilities                |   |    |         |              |               |
--------------------------------------------------------------------------------

Guarantees on own behalf                                                        
Other contingent liabilities on own behalf has increased during 2008 with EUR   
138 million mainly due to guarantees given to suppliers regading the investment 
program in TGC-10.                                                              
Guarantees on behalf of associated companies                                    
According to law, nuclear companies operating in Finland and Sweden shall give  
securities to the Finnish State Nuclear Waste Management Fund and the Swedish   
Nuclear Waste Fund respectively, to guarantee that sufficient funds exist to    
cover future expenses of decommissioning of power plant and disposal of spent   
fuel.                                                                           
The guarantee given on behalf of Teollisuuden Voima Oy (TVO) to the Finnish fund
has increased from EUR 32 million at year-end 2007 to EUR 70 million during Q2  
2008. The size of the guarantee is updated yearly in Q2, based on the decisions 
regarding legal liability and the funding target which takes place around       
year-end.                                                                       
In Sweden, Fortum has given guarantees on behalf of Forsmarks Kraftgrupp AB and 
OKG AB to the Swedish fund. Starting on 1 January 2008, a new law applies for   
financing of future fees to the fund for spent nuclear fuel and decommisioning  
of the plant. Following the implementation of the new law, the total amount of  
guarantees relating to nuclear waste management in Sweden have increased from   
SEK 1 841 million (EUR 195 million) at year-end 2007 to SEK 5 314 million (EUR  
489 million) during Q2 2008. This amount will also apply for 2009.              

--------------------------------------------------------------------------------
| 21. LEGAL ACTIONS AND OFFICIAL PROCEEDINGS                                   |
--------------------------------------------------------------------------------

In March the Finnish Market Court decision overruled the conditional decision   
given by the Finnish Competition Authority in June 2006 on the acquisition of   
E.ON Finland. In their ruling, the Market Court stated that the Finnish         
Competition Authority had no grounds for setting conditions, because Fortum     
cannot be considered to have a dominant position in the power generation and    
wholesale market. According to the Market Court, the relevant geographical      
market area in power generation and wholesale consist of at least Finland and   
Sweden. The Finnish Competition authority has appealed the decision to the      
Supreme Administrative Court.                                                   
Associated companies                                                            
In Finland, Fortum is participating in the country's fifth nuclear power plant  
unit, Olkiluoto 3, through the shareholding in Teollisuuden Voima Oyj (TVO) with
an approximately 25% share representing some 400 MW in capacity. In January 2009
TVO disclosed information, confirmed by AREVA-Siemens, that the construction of 
the unit is delayed and the unit is estimated to start up in summer 2012. In    
December 2008 the constructor TVO informed that the plant supplier, consortium  
AREVA-Siemens, has filed a request for arbitration concerning Olkiluoto 3 delay 
and related costs in the International Chamber of Commerce (ICC).               

--------------------------------------------------------------------------------
| 22. RELATED PARTY TRANSACTIONS                                               |
--------------------------------------------------------------------------------

Related party transactions are described in the annual financial statements as  
of the year ended 31 December 2007. No material changes have occurred during the
period.                                                                         
The Finnish State owned 50.86% of the shares in Fortum 31 December 2007. After  
the changes in amount of shares during 2008 due to the share subscriptions under
the option schemes, the Finnish state owned 50.80 % of the Company's shares at  
31 December 2008.                                                               

--------------------------------------------------------------------------------
| ASSOCIATED COMPANY TRANSACTIONS                                              |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                             |              2008 |                  2007 |
--------------------------------------------------------------------------------
| Sales to associated companies    |               113 |                   129 |
--------------------------------------------------------------------------------
| Interest on associated company   |                34 |                    26 |
| loan receivables                 |                   |                       |
--------------------------------------------------------------------------------
| Purchases from associated        |               563 |                   519 |
| companies                        |                   |                       |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| ASSOCIATED COMPANY BALANCES                                                  |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| MEUR                           |           Dec 31  |                 Dec 31  |
|                                |              2008 |                    2007 |
--------------------------------------------------------------------------------
| Long-term interest-bearing     |               659 |                     636 |
| loan receivables               |                   |                         |
--------------------------------------------------------------------------------
| Trade receivables              |                24 |                      17 |
--------------------------------------------------------------------------------
| Other receivables              |                 5 |                       7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term loan payables        |               184 |                     171 |
--------------------------------------------------------------------------------
| Trade payables                 |                26 |                      25 |
--------------------------------------------------------------------------------
| Other payables                 |                18 |                      53 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| TRANSACTIONS AND BALANCES WITH JOINT VENTURES                                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Transactions and balances with joint ventures as at and for the   |          |
| period ended 31 December 2008 are not material for the Group.     |          |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 23. EVENTS AFTER THE BALANCE SHEET DATE                                      |
--------------------------------------------------------------------------------

In October 2008 Fortum and (Norwegian) Hafslund Infratek ASA  signed a contract 
according to which they will combine their businesses of construction and       
operating of infrastructure in Sweden, Finland and Norway. The deal became      
effective as of 15 January 2009. Fortum transfers its construction and operating
of infrastructure as well as parts of it distribution network construction      
activities in Sweden into the new combined company. Fortum receives newly issued
shares in Infratek ASA entitling to a 33% ownership in the enlarged company.    
Hafslund ASA holds 43.3% of the shares. The remaining shares are owned by       
institutional and private shareholders.                                         

--------------------------------------------------------------------------------
| 24. DEFINITION OF KEY FIGURES                                                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT |   =   | Operating profit + Depreciation,  |       |       |       |   |
| DA   |       | amortisation                      |       |       |       |   |
| (Ear |       |                                   |       |       |       |   |
| ning |       |                                   |       |       |       |   |
| s    |       |                                   |       |       |       |   |
| befo |       |                                   |       |       |       |   |
| re   |       |                                   |       |       |       |   |
| inte |       |                                   |       |       |       |   |
| rest |       |                                   |       |       |       |   |
| ,    |       |                                   |       |       |       |   |
| taxe |       |                                   |       |       |       |   |
| s,   |       |                                   |       |       |       |   |
| depr |       |                                   |       |       |       |   |
| ecia |       |                                   |       |       |       |   |
| tion |       |                                   |       |       |       |   |
--------------------------------------------------------------------------------
| and  |       | and impairment charges    |       |       |       |       |   |
| amor |       |                           |       |       |       |       |   |
| tisa |       |                           |       |       |       |       |   |
| tion |       |                           |       |       |       |       |   |
| )    |       |                           |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comp |   =   | Operating profit - non-recurring items - other items          |
| arab |       | effecting comparability                                       |
| le   |       |                                                               |
| oper |       |                                                               |
| atin |       |                                                               |
| g    |       |                                                               |
| prof |       |                                                               |
| it   |       |                                                               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non- |   =   | Mainly capital gains and  |       |       |       |       |   |
| recu |       | losses                    |       |       |       |       |   |
| rrin |       |                           |       |       |       |       |   |
| g    |       |                           |       |       |       |       |   |
| item |       |                           |       |       |       |       |   |
| s    |       |                           |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Othe |   =   | Includes effects from financial derivatives hedging future    |
| r    |       | cash-flows where hedge accounting is                          |
| item |       |                                                               |
| s    |       |                                                               |
| effe |       |                                                               |
| ctin |       |                                                               |
| g    |       |                                                               |
| comp |       |                                                               |
| arab |       |                                                               |
| ilit |       |                                                               |
| y    |       |                                                               |
--------------------------------------------------------------------------------
|      |       | not applied according to IAS 39 and effects from the          |
|      |       | accounting of Fortum´s part of the Finnish                    |
--------------------------------------------------------------------------------
|      |       | Nuclear Waste Fund where the asset in the balance sheet       |
|      |       | cannot exceed the related liabilities                         |
--------------------------------------------------------------------------------
|      |       | according to IFRIC interpretation |       |       |       |   |
|      |       | 5.                                |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fund |   =   | Net cash from operating activities before change  |       |   |
| s    |       | in working capital                                |       |   |
| from |       |                                                   |       |   |
| oper |       |                                                   |       |   |
| atio |       |                                                   |       |   |
| ns   |       |                                                   |       |   |
| (FFO |       |                                                   |       |   |
| )    |       |                                                   |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capi |   =   | Capitalised investments in property, plant and equipment and  |
| tal  |       | intangible assets                                             |
| expe |       |                                                               |
| ndit |       |                                                               |
| ure  |       |                                                               |
--------------------------------------------------------------------------------
|      |       | including maintenance, productivity, growth and   |       |   |
|      |       | investments required by legislation               |       |   |
--------------------------------------------------------------------------------
|      |       | including borrowing costs capitalised during      |       |   |
|      |       | construction period. Maintenance                  |       |   |
--------------------------------------------------------------------------------
|      |       | investments expand lifetime of an existing asset, |       |   |
|      |       | maintain useage/availability and/or               |       |   |
--------------------------------------------------------------------------------
|      |       | maintains reliability. Productivity improves      |       |   |
|      |       | productivity in an existing asset. Growth         |       |   |
--------------------------------------------------------------------------------
|      |       | investments' purpose is to build new assets       |       |   |
|      |       | and/or to increase customer base within           |       |   |
--------------------------------------------------------------------------------
|      |       | existing businesses. Legislation investments are  |       |   |
|      |       | done at certain point of time due to              |       |   |
--------------------------------------------------------------------------------
|      |       | legal             |       |       |       |       |       |   |
|      |       | requirements.     |       |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gros |   =   | Investments in subsidiary shares, shares in associated        |
| s    |       | companies and other shares in available for                   |
| inve |       |                                                               |
| stme |       |                                                               |
| nts  |       |                                                               |
| in   |       |                                                               |
| shar |       |                                                               |
| es   |       |                                                               |
--------------------------------------------------------------------------------
|      |       | sale financial assets. Investments in subsidiary shares are   |
|      |       | net of cash and grossed with                                  |
--------------------------------------------------------------------------------
|      |       | interest-bearing liabilities in the       |       |       |   |
|      |       | acquired company.                         |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Retu |   =   | Profit for the    |       |       |       |       | x 100 |   |
| rn   |       | year              |       |       |       |       |       |   |
| on   |       |                   |       |       |       |       |       |   |
| shar |       |                   |       |       |       |       |       |   |
| ehol |       |                   |       |       |       |       |       |   |
| ders |       |                   |       |       |       |       |       |   |
| '    |       |                   |       |       |       |       |       |   |
| equi |       |                   |       |       |       |       |       |   |
| ty,  |       |                   |       |       |       |       |       |   |
| %    |       |                   |       |       |       |       |       |   |
--------------------------------------------------------------------------------
|      |       | Total equity      |       |       |       |       |       |   |
|      |       | average           |       |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Retu |   =   | Profit before taxes + interest and other          | x 100 |   |
| rn   |       | financial expenses                                |       |   |
| on   |       |                                                   |       |   |
| capi |       |                                                   |       |   |
| tal  |       |                                                   |       |   |
| empl |       |                                                   |       |   |
| oyed |       |                                                   |       |   |
| , %  |       |                                                   |       |   |
--------------------------------------------------------------------------------
|      |       | Capital employed average  |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Retu |   =   | Operating profit + Share of profit (loss) in      | x 100 |   |
| rn   |       | associated companies and joint ventures           |       |   |
| on   |       |                                                   |       |   |
| net  |       |                                                   |       |   |
| asse |       |                                                   |       |   |
| ts,  |       |                                                   |       |   |
| %    |       |                                                   |       |   |
--------------------------------------------------------------------------------
|      |       | Net assets        |       |       |       |       |       |   |
|      |       | average           |       |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comp |   =   | Comparable operating profit + Share of profit     | x 100 |   |
| arab |       | (loss) in associated companies                    |       |   |
| le   |       |                                                   |       |   |
| retu |       |                                                   |       |   |
| rn   |       |                                                   |       |   |
| on   |       |                                                   |       |   |
| net  |       |                                                   |       |   |
| asse |       |                                                   |       |   |
| ts,  |       |                                                   |       |   |
| %    |       |                                                   |       |   |
--------------------------------------------------------------------------------
|      |       | and joint ventures (adjusted for IAS 39 effects and major     |
|      |       | sales gains or losses)                                        |
--------------------------------------------------------------------------------
|      |       | Comparable net assets average     |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capi |   =   | Total assets - non-interest bearing liabilities - deferred    |
| tal  |       | tax liabilities - provisions                                  |
| empl |       |                                                               |
| oyed |       |                                                               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net  |   =   | Non-interest bearing assets + interest-bearing assets related |
| asse |       | to the Nuclear Waste Fund -                                   |
| ts   |       |                                                               |
--------------------------------------------------------------------------------
|      |       | non-interest bearing liabilities - provisions (non-interest   |
|      |       | bearing assets and liabilities do not include                 |
--------------------------------------------------------------------------------
|      |       | finance related items, tax and deferred tax and assets and    |
|      |       | liabilities from fair valuations of                           |
--------------------------------------------------------------------------------
|      |       | derivatives where hedge accounting is     |       |       |   |
|      |       | applied)                                  |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comp |   =   | Net assets adjusted for non-interest bearing assets and       |
| arab |       | liabilities arising from financial derivatives                |
| le   |       |                                                               |
| net  |       |                                                               |
| asse |       |                                                               |
| ts   |       |                                                               |
--------------------------------------------------------------------------------
|      |       | hedging future cash-flows where hedge accounting is not       |
|      |       | applied according to IAS 39                                   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inte |   =   | Interest-bearing liabilities -    |       |       |       |   |
| rest |       | liquid funds                      |       |       |       |   |
| -bea |       |                                   |       |       |       |   |
| ring |       |                                   |       |       |       |   |
| net  |       |                                   |       |       |       |   |
| debt |       |                                   |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gear |   =   | Interest-bearing net debt |       |       |       | x 100 |   |
| ing, |       |                           |       |       |       |       |   |
| %    |       |                           |       |       |       |       |   |
--------------------------------------------------------------------------------
|      |       | Total equity      |       |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equi |   =   | Total equity including minority   |       |       | x 100 |   |
| ty-t |       | interest                          |       |       |       |   |
| o-as |       |                                   |       |       |       |   |
| sets |       |                                   |       |       |       |   |
| rati |       |                                   |       |       |       |   |
| o, % |       |                                   |       |       |       |   |
--------------------------------------------------------------------------------
|      |       | Total assets      |       |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net  |   =   | Interest-bearing net debt |       |       |       |       |   |
| debt |       |                           |       |       |       |       |   |
| /    |       |                           |       |       |       |       |   |
| EBIT |       |                           |       |       |       |       |   |
| DA   |       |                           |       |       |       |       |   |
--------------------------------------------------------------------------------
|      |       | Operating profit + Depreciation, amortisation and |       |   |
|      |       | impairment charges                                |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inte |   =   | Operating profit  |       |       |       |       |       |   |
| rest |       |                   |       |       |       |       |       |   |
| cove |       |                   |       |       |       |       |       |   |
| rage |       |                   |       |       |       |       |       |   |
--------------------------------------------------------------------------------
|      |       | Net interest expenses     |       |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earn |   =   | Profit for the period - minority  |       |       |       |   |
| ings |       | interest                          |       |       |       |   |
| per  |       |                                   |       |       |       |   |
| shar |       |                                   |       |       |       |   |
| e    |       |                                   |       |       |       |   |
| (EPS |       |                                   |       |       |       |   |
| )    |       |                                   |       |       |       |   |
--------------------------------------------------------------------------------
|      |       | Average number of shares during   |       |       |       |   |
|      |       | the period                        |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equi |   =   | Shareholder's     |       |       |       |       |       |   |
| ty   |       | equity            |       |       |       |       |       |   |
| per  |       |                   |       |       |       |       |       |   |
| shar |       |                   |       |       |       |       |       |   |
| e    |       |                   |       |       |       |       |       |   |
--------------------------------------------------------------------------------
|      |       | Number of shares excluding treasury shares at the |       |   |
|      |       | end of the period                                 |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Last |   =   | Twelve months preceding the       |       |       |       |   |
| twel |       | reporting date                    |       |       |       |   |
| ve   |       |                                   |       |       |       |   |
| mont |       |                                   |       |       |       |   |
| hs   |       |                                   |       |       |       |   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------