Wärtsilä - Company Announcement

Wärtsilä to deliver two major dynamic grid reserve power plants to secure electricity supply in Estonia

Wärtsilä has been awarded a contract to supply two complete power plants with a
total output of 250 MW for Elering AS, the Estonian transmission system
operator. The total value of the order is EUR 129 million. The first power plant
is scheduled to be in operation in the spring 2013, with the second unit due to
be operational by the autumn 2014.

Wärtsilä announced earlier this month that its tender was declared successful in
the public procurement process for Elering Emergency Reserve Power Plant. The
process has now been finalised.

The power plants will provide dynamic generation capacity to meet sudden and
unexpected drops in the electricity supply. The power plant project is part of
the Estonian electricity sector's development plan to have new dynamic power
stations available for operation by 2018 in order to guarantee security of the
nation's electricity supply. The requirement for these plants is that they have
to be able to compensate for lost generating capacity in no more than 15 minutes
in the event of a plant shut down. The 10-minute start-up capability of the
Wärtsilä power plants is, therefore, essential.

The power plants are based on Wärtsilä 20V34DF engines, which will operate
primarily on natural gas but with the option to switch to light fuel oil as a
back-up fuel. These dynamic grid stability plants will operate on average of
200 hours per year. The contract also includes a two year maintenance agreement,
with an option of ten years extension."This is an important project for the Estonian energy sector, and one that will
ensure the supply of electricity to consumers should any existing power station
unexpectedly lose production. The capacity of the new plants is equal to one-
sixth of Estonia's peak demand, so in an emergency they will be able to cover a
large part of the capital, Tallinn's, winter electricity consumption," says Mr
Taavi Veskimägi, Elering's Chairman."This grid stability power plant project is an excellent example of Wärtsilä's
ability to provide smart power generation solutions. It meets the needs of the
customer in terms of fuel and operational flexibility, as well as providing a
reliable means of securing Estonia's electricity supply," says Mr Vesa
Riihimäki, Group Vice President, Wärtsilä Power Plants.

The plants will be connected to Estonia's 110kV and 330kV grid, and the project
is the first full turnkey engineering, procurement and construction endeavour to
be built in the country under the new EU regulations.

The power plants will be optimally located close to the Kiisa substation, about
25 kilometres from Tallinn. The advantage of this region is the strong
connections from this substation through high-voltage lines to the other
substations in Estonia.

Wärtsilä has been present in Estonia since 2005, providing sales and services to
customers throughout the Baltic region. Globally, Wärtsilä has delivered 4,500
power plants in 168 countries with generating capacity totalling more than 47
GW.


PRESS CONFERENCE

A press conference will be held on Wednesday 29 June 2011, at 12 noon local time
(10 am UK time), at Radisson Blue hotel, Rävala Puiestee 3, Tallinn, Estonia.
The combined web- and teleconference will be held in English and can be viewed
on the internet at the following address:
http://storm.zoomvisionmamato.com/player/wartsila/objects/z9v1450q/

Dial in numbers for the participants joining the Conference call are:
UK: +44 (0)207 509 5139
US: 1866 629 2704
FIN: +358 (0) 969379735
EST: 8000 111 276

Confirmation Number: 5158640

If you wish to ask questions during the teleconference, press the *-button
followed by the 1-button on your phone to register for a question and the # -key
to withdraw a question. The event name is: Elering-Wärtsilä press conference.
Please be ready to state your details and the name of the conference to the
operator. If problems occur, please press the *-button followed by the 0-button.

An on-demand version of the webcast will be available on the company website
later the same day.


For further information, please contact:


Vesa Riihimäki
Group Vice President, Power Plants
Wärtsilä Corporation
Tel. +358 40 504 5929
vesa.riihimäki@wartsila.com

Pauliina Tennilä
Director, Investor Relations
Wärtsilä Corporation
Tel: +358 40 570 5530
pauliina.tennila@wartsila.com

Tuula Franck
Senior Manager, Media and Stakeholder Relations
Wärtsilä Corporation
Tel: +358 400 267555
tuula.franck@wartsila.com

Wärtsilä in brief

Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximises the environmental and economic performance of the
vessels and power plants of its customers.

In 2010, Wärtsilä's net sales totalled EUR 4.6 billion with more than 17,500
employees. The company has operations in 160 locations in 70 countries around
the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.

www.wartsila.com


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