Eastern European Markets
October10, 2006

Fortum acquires 12.5% of St. Petersburg Generation Company

Fortum has today informed ABN AMRO Finance ZAO of its intention to exercise the right to purchase approximately 12.5 percent of OAO St. Petersburg Generating Company. The purchase price is approximately EUR 120 million. The call option is based on an agreement between ABN AMRO and Fortum according to which the transaction will come in effect once the Russian competition authority has approved it.

AOA St. Petersburg Generating Company generates power and heat for the St. Petersburg region. Its annual power generation is approximately 12 TWh and heat production approximately 25 TWh. In 2005, Fortum's power generation totalled 52.3 TWh and heat production 25.1 TWh.

OAO St. Petersburg Generating Company was formed when the generation assets of the regional power company Lenenergo were unbundled and incorporated as part of the Russian power reform. As part of the reform, the incorporated generation assets of Lenenergo and two other regional power companies in north-west Russia, Karelenergo and Kolenergo, are to be merged into a Territorial Generation Company, TGC-1. Once concluded, this transaction will increase Fortum's ownership in TGC-1 from the current approximately 18% to slightly over 25%.

For further information
Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications
Kari Kautinen, Vice President, +358 50 45 32174 or +7 812 9048282.
Helsinki Stock Exchange
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