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Stock exchange release

Fortum sells its shares in Russian Lenenergo

17 August 2007, 09:54 EEST

Fortum has decided to sell its stake - slightly over 1/3 of shares - in JSC     
Lenenergo for approximately EUR 295 million. The buyers are VTB Bank, I.D.E.    
Electricity Distribution Investments 1 Ltd and the Russian energy company RAO   
UES. As a consequence, Fortum will book an after tax gain of approximately EUR
230 million, corresponding to EUR 0.26 per share, in its third quarter
financial 
results.                                                                        

The decision to sell the Lenenergo shares is in line with Fortum's strategy to  
invest primarily in Russian generation assets. The current business of Lenenergo
is electricity distribution in the city of St. Petersburg and the Leningrad     
Region.                                                                         

The generation assets of the original Lenenergo were integrated to the          
north-western Territorial Generating Company, TGC-1, in 2006 as a part of the   
Russian power sector reform. This company operates in a large area, from St.    
Petersburg to the Kola Peninsula. The production capacity of TGC-1 is about     
6,000 MW power and about 17,000 MW heat. More than half of the power generation 
capacity is hydro power. With its slightly over 25% stake, Fortum is the second 
largest shareholder of the company.                                             


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


Further Information:                                                            
Tapio Kuula, Senior Vice President, Fortum Corporation, +358 50 452 4112