Mr. Karl Smith reports

FORTIS INC. CLOSES $600,000,000 OFFERING OF SERIES M FIRST PREFERENCE SHARES

Fortis Inc. has closed its public offering of cumulative redeemable fixed rate reset first preference shares, Series M, underwritten by a syndicate of underwriters led by Scotiabank and RBC Capital Markets. Fortis issued 24 million Series M first preference shares at a price of $25.00 per share for aggregate gross proceeds to the corporation of $600-million.

The net proceeds of the offering will be used to repay a portion of the amounts borrowed by Fortis under its acquisition credit facility in connection with the acquisition of UNS Energy Corp. completed on Aug. 15, 2014.

The Series M first preference shares were offered by way of a short-form prospectus of Fortis dated Sept. 11, 2014, and will commence trading today on the Toronto Stock Exchange under the symbol FTS.PR.M.

We seek Safe Harbor.