St. John’s, NL – (July 23, 2007)

Fortis Properties Corporation, a wholly owned subsidiary of Fortis Inc. (TSX:FTS), has entered into an agreement to purchase Delta Regina in Regina, Saskatchewan from Remai Investment Corporation for a purchase price of $49.95 million.  The transaction is scheduled to close in the third quarter of 2007, subject to obtaining required approvals and assignments and fulfilling normal closing conditions. 

Delta Regina is comprised of 274 hotel rooms, the Saskatchewan Trade and Convention Centre, 52,000 square feet of Class A commercial office space and a parking garage.

“This acquisition marks another milestone for Fortis Properties as we expand our geographic footprint to an eighth Canadian province,” says Nora Duke, President and Chief Executive Officer, Fortis Properties Corporation.  “Delta Regina is a premiere, multi-use facility that enhances our portfolio of high-quality hotel and commercial real estate assets,” she adds.

“This acquisition is expected to be immediately accretive to earnings of Fortis,” says Stan Marshall, President and Chief Executive Officer, Fortis Inc.  “It enables Fortis Properties to continue to grow its earnings while building on its reputation for superior customer service combined with high-quality, well-situated hotels,” adds Marshall.

“We welcome the approximately 200 employees at Delta Regina to our team and look forward to their continued service and contribution to customer service excellence,” concludes Duke.

With the addition of this hotel, Fortis Properties owns and operates 19 hotels, representing over 3,500 rooms, in eight Canadian provinces.  In addition to these holdings, the Company owns and operates over 2.7 million square feet of office and retail space in Atlantic Canada and 12 hydroelectric generating plants in Newfoundland and Ontario, Canada and upstate New York, USA.  Fortis Properties employs more than 1,700 people. Visit www.fortisproperties.com for additional information about Fortis Properties.   

Please see the attached backgrounder for additional information on the Delta Regina.

Fortis Inc., the largest investor-owned distribution utility in Canada, serves almost two million gas and electric customers and has approximately $10 billion of assets.  Its regulated holdings include a natural gas utility in British Columbia and electric utilities in five Canadian provinces and three Caribbean countries.  Fortis Inc. owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New YorkState.  It also owns hotels and commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com or www.sedar.com.

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                                Backgrounder

Delta Regina

·         Located in downtown Regina, Saskatchewan on Saskatchewan Drive

·         274 rooms, including business class rooms and suites

·         25 storey complex includes 26,600 square foot Saskatchewan Trade and Convention Centre, 52,000 square feet of Class A office space and a parking garage

·         Features food and beverage facilities, a water park and is connected, via skywalk, to Casino Regina and the city’s largest shopping centre

·         Opened in 1988