St. John’s, NL – (January 25, 2005)

Fortis Properties Corporation, a wholly owned subsidiary of Fortis Inc. (TSX:FTS), has entered into an agreement to acquire 3 hotels located in Edmonton, Calgary and Winnipeg from Greenwood Inn Ltd. based in western Canada.  The purchase price is $62.6 million and the transaction is expected to close on February 1, 2005.

“This acquisition marks another milestone for Fortis Properties as we expand into western Canada,” says John Walker, President and Chief Executive Officer, Fortis Properties.

The acquisition expands the hospitality operations of Fortis Properties by 650 rooms.  Each of the full-service hotels offers quality rooms and varied guest amenities, food and beverage outlets, meeting and fitness facilities and a pool.  As part of its purchase agreement, the Company is acquiring ownership and franchising rights to the Greenwood Inn brand, currently promoted within the regional market. 

“These quality, mid-market hotels perform well within their markets and complement our current hotel portfolio,” says Walker.  “We are pleased to welcome the approximately 120 employees who work at the Greenwood Inns to our team and look forward to their contribution in providing our customers with quality service.”

“Consistent with the vision of Fortis and our long-term growth strategy, this investment is expected to be accretive to Fortis shareholders immediately.  Over the longer term, it is expected to provide returns above those generated by utility investments,” adds Stan Marshall, President and Chief Executive Officer, Fortis Inc.  The purchase will be financed on a long-term basis with a combination of equity and debt, including debt secured by the hotels.

With the addition of these 3 hotels, Fortis Properties owns and operates 15 hotels, representing over 2,800 rooms, in Newfoundland, Nova Scotia, New Brunswick, Ontario, Manitoba and Alberta.  In addition to these holdings, the Company is a leading owner/operator of commercial real estate in Atlantic Canada, with over 2.7 million square feet of office and retail space.  Fortis Properties also owns 4 hydroelectric generating plants in upstate New York, USA.  In total, the Company employs over 1,500 people. Fortis Properties information can be accessed at www.fortisproperties.com.

Fortis Inc. is a diversified, international electric utility holding company with assets of $3.7 billion and annual revenues of approximately $1.2 billion.  The Common Shares, Series C First Preference Shares and Series E First Preference Shares of Fortis Inc. are traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C and FTS.PR.E, respectively.  Fortis Inc. information can be accessed at www.fortisinc.com.

Fortis Inc. (or the “Corporation”) includes forward-looking statements in this release.  By their very nature, forward-looking statements are based on underlying assumptions and are subject to inherent risks and uncertainties surrounding future expectations generally.  Such events include, but are not limited to, general economic, market and business conditions, regulatory developments, weather and competition.  Fortis Inc. cautions readers that should certain events or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.  For additional information with respect to certain of these risks or factors, reference should be made to the Corporation’s continuous disclosure materials filed from time to time with Canadian Securities Regulatory Authorities.  Fortis Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Please see attached backgrounder for additional information on the 3 Greenwood Inn hotels.

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Backgrounder

Greenwood Inn Edmonton

• Located on Gateway Boulevard in Edmonton, Alberta
• 224 rooms
• 9 conference rooms with over 8,000 sq ft of premier meeting and banquet space, which can accommodate over 500 people
• constructed in 1997
• close to the International Airport, downtown, Nisku Industrial Park, the University of Alberta, and minutes away from West Edmonton Mall

Greenwood Inn Calgary

• Located on 26th Street North East adjacent to Barlow Trail in Calgary, Alberta
• 210 finely appointed rooms
• 9 conference rooms, comprising 8,500 square feet of elegant conference facilities, which can accommodate up to 600 people
• constructed in 1998
• close to numerous shopping centres, theatres, golf courses, tourist attractions, and freeway connections to downtown Calgary

Greenwood Inn Winnipeg

• Located on Wellington Avenue in Winnipeg, Manitoba
• 213 rooms
• 7 conference rooms comprising 10,000 square feet of elegant conference facilities which can accommodate up to 500 people
• constructed in 2000
• minutes away from the International Airport and offers easy access to shopping centres, Winnipeg Arena, Blue Bomber Football Stadium and several semi-private and public golf courses 

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