St. John's, NL - (December 21, 2000)

Fortis Properties Corporation announced today that it has completed its acquisition of three major office properties in Atlantic Canada for a total price of approximately $80 million. The deal was financed in part through the assumption of existing mortgages and by a private debt placement of $22.0 million with major Canadian financial institutions with market rates in the range of 7.32 per cent.

Fortis Properties acquired the Fort William Building, located in St. John’s, Newfoundland from Aliant Inc. and Blue Cross Centre, located in Moncton, New Brunswick from Atlantic Blue Cross Care and Aliant. Fortis Properties also acquired Aliant’s 50 per cent interest in Brunswick Square Limited, located in Saint John, New Brunswick. Fortis Properties originally acquired a 50 per cent interest in Brunswick Square in September 1999.

Fortis Properties, the primary vehicle for non-utility diversification for parent company, Fortis Inc., is involved in the ownership and management of office buildings, shopping centers and hotels throughout Atlantic Canada. Fortis Inc. is listed on the Toronto Stock Exchange and trades under the ticker symbol FTS.

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