Press release

Fortum negotiating the restructuring of Naantali power plant's ownership

15 November 2010, 12:00 EET

Fortum Corporation Press release 15 November 2010

Fortum negotiating the restructuring of Naantali power plant's ownership        

Fortum, Turun Seudun Maakaasu ja Energiantuotanto (TSME), Turun Seudun          
Kaukolämpö, and Turku Energia have started negotiations regarding a new         
operating model for energy supply in the Turku region of Finland. In the new    
model, the region's energy production would be consolidated to one co-owned     
production company, TSME. The owners of TSME are Turku Energia (42.5%) and      
Fortum (42.5%) as well as the municipalities of Raisio (9%), Kaarina (3%) and   
Naantali (3%). The operating model under planning was presented today to        
representatives of the cities.                                                  

As part of the restructuring now being negotiated, Fortum would initially lease 
and possibly later sell its Naantali power plant to TSME. The district heat     
produced would be sold to Turku Energia, the steam to Fortum and the electricity
to TSME shareholders. The aim is to reach a final decision on the restructuring 
during the first quarter of 2011.                                               

Currently, energy production in the Turku region is largely based on the heat   
and electricity production of Fortum's Naantali coal-fired power plant. The     
power plant produces annually about 1,000 gigawatt-hours (GWh) of electricity   
for the Nordic market, about 600 GWh of steam for industrial customers, and     
about 1,500 GWh of district heat for Turun Seudun Kaukolämpö Oy's heat          
transmission network. The plant has been operating for 50 years, and its renewal
will become topical in the near future. Fortum has launched an environmental    
impact assessment (EIA) on building replacement energy production capacity in   
the Naantali power plant area.                                                  

Fortum Corporation                                                              
Corporate Communications                                                        

Additional information:                                                         
Jouni Haikarainen, Vice President, Heat Division,                               
Finland, tel. +358 (0)40 709 5690