Mr. Barry Perry reports

FORTIS INC. ANNOUNCES REVIEW OF STRATEGIC OPTIONS FOR FORTIS PROPERTIES

Fortis Inc. will engage in a review of strategic options for its hotel and commercial real estate business, operating under its wholly owned subsidiary, Fortis Properties Corp.

Fortis Properties, a successful, high-performing business established in 1989, owns and operates 23 hotels in eight Canadian provinces, representing over 4,400 rooms, and 2.8 million square feet of commercial and retail real estate, primarily in Atlantic Canada. Its major hotel brands include Delta, Sheraton, Hilton, Holiday Inn, Ramada and Best Western, and some of its prominent real estate holdings in Atlantic Canada include Cabot Place, Maritime Centre and the Blue Cross Centre.

In 2013, Fortis Properties generated revenues of approximately $250-million, and had earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $80-million.

"Fortis, headquartered in St. John's, Nfld., is a leading electric and gas utility owner and operator in North America. We currently serve 3.1 million electric and gas customers in our utility businesses," said Barry Perry, president, Fortis. "The review of Fortis Properties will explore various strategic options for this non-utility subsidiary, which currently comprises approximately 3 per cent of the corporation's total assets," he said. Strategic options may include, but are not limited to, a sale of all or a portion of the assets, a sale of shares of Fortis Properties, or an initial public offering.

Fortis has engaged CIBC World Markets Inc. and CBRE Ltd. as its advisers for this review. This process is expected to commence in the coming weeks, and continue through the balance of 2014 and into 2015.

There can be no assurance that this review process will result in any transaction. Fortis does not currently intend to disclose further developments with respect to this process unless and until its board of directors approves a specific transaction or otherwise concludes the review of strategic options.

Listings of Fortis Properties' hotels and real estate holdings are attached.

                        HOSPITALITY HOLDINGS

Newfoundland and Labrador
Delta St. John's Hotel and Conference Centre              St. John's
Holiday Inn St. John's Government Centre                  St. John's
Sheraton Hotel Newfoundland                               St. John's
Mount Peyton Hotel                                        Grand Falls-Windsor
Greenwood Inn and Suites Corner Brook                     Corner Brook
Nova Scotia
Holiday Inn Sydney Waterfront                             Sydney
Four Points by Sheraton                                   Halifax
New Brunswick
Delta Brunswick                                           Saint John
Ontario
Holiday Inn Sarnia                                        Sarnia
Holiday Inn Kitchener-Waterloo                            Kitchener
Holiday Inn Cambridge                                     Cambridge
Holiday Inn Peterborough Waterfront                       Peterborough
Holiday Inn and Suites Windsor                            Windsor
Station Park All Suite Hotel                              London
Manitoba
Best Western Plus Winnipeg Airport Hotel                  Winnipeg
Hilton Winnipeg Airport Suites                            Winnipeg
Saskatchewan
Delta Regina                                              Regina
Alberta
Ramada Plaza Calgary Airport Hotel and Conference Centre  Calgary
Holiday Inn Conference Centre Edmonton South              Edmonton
Holiday Inn Lethbridge                                    Lethbridge
Holiday Inn Express and Suites Medicine Hat               Medicine Hat
Best Western Plus Sun Country                             Medicine Hat
British Columbia
Holiday Inn Express Kelowna Conference Centre Hotel       Kelowna

                        REAL ESTATE HOLDINGS

Newfoundland and Labrador
Cabot Place                                               St. John's
Fortis Building                                           St. John's
TD Place                                                  St. John's
Fort William Building                                     St. John's
Water Street properties                                   St. John's
Fortis Place (opening fall 2014)                          St. John's
Fortis Tower                                              Corner Brook
Marystown Mall                                            Marystown
Millbrook Mall                                            Corner Brook
Fraser Mall                                               Gander
Nova Scotia
Maritime Centre                                           Halifax
New Brunswick
Brunswick Square                                          Saint John
Kings Place                                               Fredericton
Blue Cross Centre                                         Moncton
Saskatchewan
Delta Regina                                              Regina

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