Fortum - Company Announcement

Fortum to divest heat operations outside Stockholm in Sweden

Fortum Corporation
Stock exchange release
12 December 2010 at 15.00 EET

Fortum to divest heat operations outside Stockholm in Sweden

Fortum and Macquarie-managed funds have signed an agreement according to which
Fortum will divest its district heat operations and heat production facilities
outside the Stockholm area in Sweden. The sales price is approximately EUR 200
million. The major part of the divested operations is owned by Fortum's
subsidiary Fortum Värme in which the city of Stockholm has a 50% economic
interest. Fortum expects to recognise a sales gain with a minor effect on EPS
in the first quarter 2011. The sales gain is presented in Heat Division. 

Fortum is divesting the operations in order to be better able to concentrate on
combined power and heat production and on developing its district heat
businesses in the Stockholm area. The transaction comprises 12 different heat
operations including both municipal district heating and industrial
partnerships. All the operations are located in the central parts of Sweden
from east to west and three are co-owned with the local municipality. The heat
sales in 2009 were 1.3 terawatt-hours. In 2009, the businesses' sales totaled
EUR 72 million and EBITDA was EUR 28 million. Eighty-three employees will move
over to the new owner after the transaction has been finalised. 

The divestment is pending on the approval of the Stockholm City Board and the
Swedish Competition Authority. Fortum expects to finalise the divestment during
the first quarter of 2011. "We are very pleased to find a world leading company in investment, ownership
and management of infrastructure assets as the new owner for our heat
operations outside Stockholm. Macquarie has the ability and opportunity to
develop them further. In line with our strategy, we can now concentrate on
combined heat and power production and on further developing district heating
in the capital area," says Per Langer, Executive Vice president, Fortum. 

Macquarie-managed funds have a strong track record in responsible investment in
regulated utilities and infrastructure globally, including investments in
Thames Water, the UK's largest water and sewerage company, and Thermal Chicago
Corporation, the world's largest district cooling system. Macquarie-managed
funds have also invested in infrastructure in Sweden including the Arlanda
Express, the high-speed rail service linking Arlanda Airport to Stockholm's
city centre. 

Fortum Corporation
Anne Brunila
Executive Vice President, Corporate Relations and Sustainability

Further information:
Per Langer, Executive Vice President, Fortum
Jens Bjöörn, Head of Communications, Fortum Värme, tel. +46 702 98 41 25

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