Mr. Barry Perry reports

FORTIS INC. ANNOUNCES SALE OF COMMERCIAL REAL ESTATE

Fortis Inc. is selling to a subsidiary of Slate Office REIT the commercial real estate portfolio of Fortis Properties Corp., a wholly owned subsidiary of Fortis, for $430-million.

The portfolio comprises 2.8 million square feet of leasable space located in Newfoundland, New Brunswick and Nova Scotia. The Delta Brunswick hotel, part of the Brunswick Square office complex located in Saint John, is also included in the sale. A complete list of the properties included in the transaction is attached.

"The sale of Fortis Properties' commercial real estate is the result of a strategic review process and is consistent with our focus on our core utility business. The review process for the hotel business is ongoing," says Barry Perry, president and chief executive officer, Fortis.

The commercial real estate transaction is subject to customary closing conditions and is expected to be completed late in the second quarter or early in the third quarter. The purchaser's financing includes a $35-million subscription by Fortis in trust units of Slate Office REIT in conjunction with a public offering.

We seek Safe Harbor.