Fortum - Company Announcement

Fortum not yet in agreement on TGC-1 hydro power - If restructuring proceeds, ready to take a minority stake in Fennovoima nuclear project

FORTUM CORPORATION STOCK EXCHANGE RELEASE 24 June 2015 at 9:00 EET

As announced earlier, Fortum is negotiating on the restructuring of the
territorial generating company, TGC-1. The negotiations have not, however, come
to conclusions, that would make it possible for Fortum to decide on its
participation in the Fennovoima nuclear power project. Should the negotiations
proceed later, and Fortum received the majority ownership in TGC-1 hydro
assets, Fortum would still be ready to participate with a minority share (max
15%) in the Finnish Fennovoima nuclear power project on the same terms and
conditions as the other Finnish companies currently participating in the
project. It is not possible to estimate the negotiations schedule. "We are continuing negotiations with all parties involved but it will take its
time.  For Fortum, the TGC-1 restructuring and the Fennovoima project are a
comprehensive package where both parts need to be completed," says Fortum's
Interim CEO and CFO Timo Karttinen. 

Fortum, Gazprom Energoholding and Rosatom signed in December 2014 a protocol to
start a restructuring process of the ownership of TGC-1 in Russia. As part of
restructuring, Fortum would found a jointly-owned company with Rosatom for
TGC-1's hydro assets. Fortum's goal is to transfer its current, 29.45% stake in
TGC-1 to a majority stake in the joint venture. 

In case the restructuring was successfully completed, Fortum has announced that
it would be ready to participate with a minority share in Fennovoima's nuclear
power project, which also Rosatom is participating, on the same terms and
conditions as the other Finnish companies currently participating in the
project. 

Fortum Corporation
Helena Aatinen
Senior Vice President, Communications

Further information:
Kari Kautinen, SVP, Strategy, Mergers and Acquisitions, Fortum,
tel. + 358 10 45 32174
Media: Helena Aatinen, SVP, Communications,  Fortum,
tel. + 358 10 45 20480
Investors and analysts: Sophie Jolly, VP, Investor Relations, Fortum,
tel. +358 10 45 32552

Link to background information on Fortum's web site: Fortum in Russia
http://www.fortum.com/en/mediaroom/in-focus/fortum-in-russia/pages/default.aspx

Distribution:
Nasdaq Helsinki
Key media
www.fortum.com

Fortum
Fortum's purpose is to create energy that improves life for present and future
generations. Fortum's expertise is in CO2-free and efficient electricity and
heat production. The company also offers energy-related products and expert
services to private and industrial customers and energy producers. Fortum's
main areas of operation are the Nordic and the Baltic countries, Russia and
Poland. In 2014, the annual sales (excluding the divested electricity
distribution business) totalled EUR 4.1 billion, and comparable operating
profit was EUR 1.1 billion. The company employs approximately 8,000 people.
Fortum's share is listed on Nasdaq Helsinki. www.fortum.com