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Stock exchange release

Fortum: Pro forma figures relating to ac

10 May 2004, 10:44 EEST

Fortum Corporation STOCK EXCHANGE RELEASE 1 (2) 10 May 2004

Fortum: Pro forma figures relating to acquiring shares in Hafslund

The following pro forma figures state the impact of acquiring 
Hafslund shares on the income statement and balance sheet during
the last twelwe months. Figures are unaudited.

Income Statement (Last twelve months ended March 31, 2004)
                                                          Fortum Group
 (unaudited)                      Fortum  Hafslund   Adjust- Pro Forma
                                  Group   Group 1)   ments
(EUR millions except share
 related data)                  

Net sales                         10 622    997 2)     -       11 619
    Expenses                      -8 589   -758 3)     -       -9 347
    Depreciation, amortisation 
      and write-downs               -526   -120       -21 4)     -667
Operating profit                   1 507    119       -21       1 605
    Financial income and 
      expenses                      -246    -95       -33 5)     -374
Profit before taxes                1 261     24       -54       1 231
    Income taxes                    -365    -12        14 6)     -363
    Minority interests               -76     -1        -          -77
Net profit for the period            820     11       -40         791

Earnings per share                  0.97                         0.94

                                                           Fortum Group
Balance Sheet                     Fortum  Hafslund  Adjust-   Pro Forma
(as of March 31, 2004)            Group   Group 1)  ments

(EUR millions except share 
related data)                

ASSETS

Intangible and tangible assets    11 602   1 833      533 4)   13 968
Other long-term investments        2 449     187     -271 7)    2 365
Current assets                     2 056     385       -        2 441
Cash and cash equivalents            203      31       -          234
Total                             16 310   2 436 9)   262      19 008


SHAREHOLDERS' EQUITY AND LIABILITIES
 
Shareholders' equity               6 376     681     -681 7)    6 376
Minority interests                   245      42       -          287
Interest-bearing liabilities       5 479   1 453      835 8)    7 767
Interest-free liabilities          4 210     260      108 4)    4 578
Total                             16 310   2 436      262      19 008


Interest-bearing net debt, 
  EUR million                     5 276    1 422      835 8)    7 533
Gearing, %                           80                           113


1)  Hafslund Group information is based on the Financial Statements 
presented in the Annual Report 2003 and the First Quarter 2004 report
multiplied by the euro exchange rate on May 7, 2004 EUR 1.00 =  
8.1367 NOK. Before the assumed transaction Fortum ownership in
Hafslund is 34.09%. In the consolidated Financial Statements of Fortum 
Hafslund Group has been consolidated according to the equity method. 
The pro forma information has been presented as if the acquisition of 
the remaining 65.91% had taken place on April 1,2003.

2)  Net sales includes the Operating revenues and Other operating 
revenues according to the Profit and loss account of Hafslund.

3)  Expenses includes the Profit from share investments and associated 
companies which has been included in Total financial items below 
Operating profit in the Profit and loss account of Hafslund.

4)  Highly preliminary allocations of the difference between 
the acquisition cost and the Group's share of the book value of 
the assets and liabilities of Hafslund Group, the deferred taxes and 
the depreciation and amortisation on those allocations.

5)  Adjustments reflect the acquisition debt as if it had been incurred 
on April 1, 2003 and the related increase in interest expense based 
on the Norwegian Krona interest rates May 7, 2004 and a margin.

6)  Tax effect of the increase in interest expense resulting from 
the incurrence of acquisition debt and the deferred taxes on 
the depreciation of allocated goodwill.

7)  Elimination of the Fortum Group's share of equity according to 
the acquisition cost method as if the acquisition had taken place 
April 1, 2003, and the reversal of the effect coming from the 
consolidation of the 34.09% shareholding of Hafslund Group according 
to the equity method.

8)  Adjustments reflect acquisition debt and costs as if it had been 
incurred on April 1, 2003. The acquisition debt as if it had been
incurred in Norwegian krona and was translated into euro at the exchange 
rate on May 7, 2004 ( EUR 1.00 = NOK 8.1367).

9)  According to the definitions of the key figures of Hafslund, 
the interest-bearing net debt is calculated net of interest-bearing 
receivables and liquid funds while according to the Fortum definition 
the interest-bearing net debt is calculated net of cash and cash 
equivalents only. Interest-bearing net debt of Hafslund is calculated 
according to the Fortum principles net of cash and cash equivalents 
only assuming the change of net interest-bearing debt amounting to 
NOK 381 million as disclosed in the First Quarter 2004 report of 
Hafslund.

Fortum Corporation
Carola Teir-Lehtinen
Senior Vice President, Corporate Communications

For further information, please contact:

Juha Laaksonen, Chief Financial Officer, +358 10 45 24519

Distribution:
Helsinki Exchanges
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