Fortis Inc. announced today it
has acquired the remaining 5 per cent interest in Belize Electric
Company Limited (“BECOL”) from the Social Security Board of the
Government of Belize for BZ$7.0 million (US$3.5 million), making it a
wholly owned, indirect subsidiary of the corporation. In January 2001,
Fortis purchased Duke Energy Group, Inc.’s 95 per cent interest in
BECOL for an aggregate purchase price of US$62 million.

BECOL owns and operates the 25-megawatt Mollejon hydroelectric
facility, located on the Macal River, the only commercial hydroelectric
facility in Belize. The company sells its entire output to Belize
Electricity, the primary distributor of electricity in Belize, under a
50-year power purchase agreement. Fortis holds a 68 per cent interest
in Belize Electricity.

In May 2003, BECOL began construction on the Chalillo hydroelectric
project, an upstream water storage and hydroelectric generating
facility which will increase average annual energy production from the
Macal River to 170 gigawatt hours (“GWh”) from 80 GWh. The US$30
million development is scheduled for completion mid-2005.

Fortis Inc. is a diversified, international electric utility holding
company with assets exceeding $2.2 billion and annual revenues of
approximately $843 million. The Corporation has investments in 5
companies which operate regulated electric distribution utilities in
Newfoundland, Prince Edward Island, Ontario, Belize and Grand Cayman.
It has 3 subsidiaries engaged solely in electricity generation in
Newfoundland, New York State and Belize. Through its wholly owned,
non-utility subsidiary, Fortis Inc. has investments in real estate and
hotel operations.

Fortis Inc. (“Fortis” or the “Corporation”) may include
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 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. The Corporation
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.