Stock exchange release

Terms and conditions of Fortum's mandatory offer to the minority shareholders of Russian TGC-10 published

28 April 2008, 15:10 EEST

Fortum Corporation
Stock exchange release
28 April 2008
15:10 EET

Terms and conditions of Fortum's mandatory offer to the minority shareholders of Russian TGC-10 published Fortum Corporation's fully-owned subsidiary, Fortum Russia B.V., has today published the terms and conditions of a mandatory public tender offer for the entire share capital of the Russian Territorial Generating Company No. 10 (TGC-10) to be made to TGC-10 minorities. As required by Russian law, the terms and conditions can be viewed at Fortum's website www.fortum.com. The offer acceptance period will last for 80 days starting from the date when Fortum Russia B.V. files the mandatory public tender offer with TGC-10. Fortum has already acquired a 76.49% share in TGC-10. The tender offer covers 23.51% of the share capital of TGC-10 (206,581,233 shares) and will be launched at a price of 111.8 rubles (approximately 3 euros) per share to be fully paid in cash. The acquisition will be financed with long-term bank loans. Founded in 2006 as part of the Russian power sector reform, TGC-10 is a territorial generating company operating in the Urals and Western Siberia regions. The total installed capacity of TGC-10 and its affiliates is 3,000 MW of electricity and 15,800 MW of heat with annual production of 18 TWh of electricity and 27 of TWh heat. The company has an extensive investment plan to further increase its electricity production capacity with 2,300 MW by 2013. Fortum Corporation Maria Romantschuk Senior Vice President, Communications Further information: Kari Kautinen, Vice President, M&A, Fortum Corporation, +358 50 453 2174 Distribution: OMX Nordic Exchange Helsinki Key media www.fortum.com