-- Fortis Inc. has announced that it has completed its previously announced acquisition of the remaining 50 per cent interest in Canadian Niagara Power Company, Limited for an aggregate purchase price of $49.0 million consisting of approximately $35.0 million in cash and the assumption of existing debt at Canadian Niagara Power of approximately $14.0 million.

Canadian Niagara Power is an Ontario-based integrated electric utility which distributes electricity to approximately 25,000 customers in the Town of Fort Erie and the City of Port Colborne. Canadian Niagara Power owns the Rankine Generating Station on the Niagara River and sells 75 megawatts of electricity in wholesale energy markets. Fortis purchased its initial 50 per cent interest in Canadian Niagara Power in October 1996. In May 2002, Fortis entered into an agreement to acquire Cornwall Electric, an Ontario-based electric transmission and distribution utility which supplies electricity to approximately 22,600 customers in the City of Cornwall and adjacent townships.

"Canadian Niagara Power is well-positioned to meet the challenges and opportunities presented by the restructuring of the Ontario electricity market," said Stan Marshall, the President and Chief Executive Officer of Fortis Inc. "We are highly confident in the company's ability to successfully expand in Ontario."

Fortis Inc. is a diversified electric utility holding company with assets exceeding $1.6 billion and annual sales of more than $628 million. The Corporation has holdings in five electric distribution utilities located in Newfoundland and Labrador, Prince Edward Island, Ontario, Belize and the Cayman Islands. It has two subsidiaries engaged in electricity generation in New York State and Belize. Through its wholly owned, non-utility subsidiary, Fortis Properties, Fortis Inc. has investments in real estate and hotel operations.

By their very nature, forward-looking statements are based on underlying assumptions and are subject to certain risks and uncertainties which may cause actual results to vary from plans, objectives and estimates. 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 risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.

CONTACT: TEL: (709) 737-2800 Donna Hynes, Manager

FAX: (709) 737-5307 Investor & Public Relations Fortis Inc.