Mr. Barry Perry reports

FORTIS COMPLETES THE MINORITY INVESTOR PROCESS IN CONNECTION WITH THE PENDING ACQUISITION OF ITC HOLDINGS CORP.

Fortis Inc. has reached a definitive agreement with GIC Private Ltd., Singapore's sovereign wealth fund, to acquire a 19.9-per-cent equity interest in ITC Holdings Corp. for aggregate consideration of $1,228-million (U.S.) in cash upon the closing of the acquisition.

This definitive agreement follows the announcement on Feb. 9, 2016, that Fortis will acquire ITC in a transaction valued on announcement at approximately $11.3-billion (U.S.). With the definitive agreement for the sale of 19.9 per cent of ITC to GIC, Fortis has completed a significant component of the ITC acquisition financing.

The financing of the ITC acquisition has been structured to allow Fortis to maintain an investment-grade credit rating and is consistent with maintaining Fortis's existing capital structure. Financing for the cash portion of the acquisition purchase price will be achieved primarily through this minority investment sale as well as through the issuance of approximately $2-billion (U.S.) of Fortis debt.

"An important milestone in the acquisition of ITC has been accomplished," said Barry Perry, president and chief executive officer of Fortis. "We are very pleased to be partnering with GIC in the future growth and development of ITC. GIC is astute and thoughtful, with a proven track record in North American infrastructure investing. They share our vision for ITC and we look forward to working together in this partnership."

ITC Holdings president, chief executive officer and chairman of the board Joseph L. Welch said, "GIC will be a great investment partner for Fortis as ITC builds on its success by continuing to take advantage of the growing opportunities for transmission investment in North America."

Rhys Evenden, head of infrastructure for North America at GIC, said: "We believe this is an attractive opportunity to partner with Fortis to invest in ITC. Given the high-quality transmission platform ITC offers, the strength of the Fortis management team and GIC's long-term approach to infrastructure investing, we look forward to a successful transaction and partnership."

Upon closing of the acquisition, GIC will be granted certain customary minority rights in connection with its investment in ITC. Additional details will be contained in amendment No. 1 to the Form F-4 to be filed by Fortis with the United States Securities and Exchange Commission in the coming days and will be available at EDGAR. When filed, amendment No. 1 will be available under Fortis's issuer profile at SEDAR.

The closing of the acquisition of ITC is expected to occur in late 2016, and is subject to ITC and Fortis shareholder approvals, certain regulatory and federal approvals, and other customary closing conditions.

Scotiabank acted as exclusive financial adviser to Fortis in connection with the ITC minority investor process. Citigroup Global Markets Inc. acted as financial adviser to GIC on this transaction.

We seek Safe Harbor.