Fortis Inc.

Fortis Inc.
Fortis Properties Corporation

Fortis Properties Corporation

January 25, 2005 09:29 ET

Fortis Properties Acquires 3 Hotels in Western Canada


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FORTIS INC.

TSX SYMBOL: FTS

AND FORTIS PROPERTIES CORPORATION

JANUARY 25, 2005 - 09:29 ET

Fortis Properties Acquires 3 Hotels in Western Canada

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(CCNMatthews - Jan. 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.




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


Photos available at the following address:
http://www2.ccnmatthews.com/database/fax/2000/combo2.jpg

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Fortis Inc.
    Barry V. Perry
    Vice President Finance and Chief Financial Officer
    (709) 737-2822
    www.fortisinc.com
    or
    Fortis Properties Corporation
    Neal J. Jackman
    Vice President Finance and Chief Financial Officer
    (709) 737-2800
    www.fortisproperties.com