St. John's, NL - (November 8, 2000)

Fortis Properties Corporation announced today that it has entered into a purchase and sale agreement to acquire three large office properties in Atlantic Canada for a total price of approximately $80 million.

“These acquisitions include approximately one million square feet of commercial real estate representing prominent Class ‘A’ office buildings in key regional markets in Newfoundland and New Brunswick,” says John Walker, President and Chief Executive Officer, Fortis Properties. “These purchases are consistent with Fortis Properties’ business strategy to increase our real estate holdings in Atlantic Canada and position the company for further growth opportunities.”

Fortis Properties will acquire 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 will acquire 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. This agreement is subject to due diligence and closing documentation, and is expected to be completed by the end of December.

“Fortis Properties has been successful in securing long-term lease agreements with Aliant and Atlantic Blue Cross Care,” adds Walker. “The agreements provide stable occupancy for these newly acquired properties, and expands the relationship between Aliant and Fortis that began in 1995 with the acquisition of MTT’s head office in Halifax.”

“This transfer represents a significant financial transaction for Aliant which is in line with our growth strategy. It will have no negative operational impacts on our company, our customers or our employees,” says Frank Fagan, President of NewTel, an Aliant company, and Aliant Telecom’s Senior Vice-President, Customer Service. “We will continue to serve our customers from these properties. The only change is that instead of owners, we will now become tenants.”

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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