Fortis Inc. Announces Offering of 5,000,000 Series F First Preference Shares

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(CCNMatthews - Sept. 13, 2006) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Fortis Inc. ("Fortis" or the "Corporation")(TSX:FTS) announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets pursuant to which they have agreed to purchase from Fortis and sell to the public 5,000,000 4.90% Series F First Preference Shares of the Corporation.

The purchase price of $25.00 per Series F First Preference Share will result in gross proceeds of $125,000,000. The net proceeds of the offering will be used principally to fund the recent acquisition of two electric utilities in the Turks and Caicos Islands and to fund equity injections into the Corporation's regulated electric utilities in western Canada in support of the utilities' extensive capital expenditure programs.

The offering is subject to the receipt of all necessary regulatory and stock exchange approvals. Closing is expected to occur on or about September 28, 2006.

The Series F First Preference Shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Fortis is a diversified, international electric utility holding company with assets exceeding $4.3 billion and annual revenues of more than $1.4 billion. Fortis has holdings in regulated electric distribution utilities in Newfoundland, Prince Edward Island, Ontario, Alberta, British Columbia, Belize, Grand Cayman, and the Turks and Caicos Islands. It has non-regulated generation operations in central Newfoundland, Ontario, British Columbia, upper New York State and Belize. Fortis also has investments in real estate and hotels through Fortis Properties Corporation, its wholly owned non-utility subsidiary.

The Common Shares, Series C First Preference Shares and Series E First Preference Shares of Fortis are traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C and FTS.PR.E, respectively. Fortis information can be accessed at www.fortisinc.com.

Fortis includes forward-looking statements in this material. 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.