21.12.2006 // PR Directorate of TVEL OJSC

TVEL has won tender for supplying nuclear fuel to Loviisa NPP (Finland)

During a meeting in Espo (Finland) on Dec 21 representatives of TVEL Corporation and Fortum, the leading energy concern of Northern European and Baltic states, signed an agreement on prolonging the nuclear power supplies to Fortum’s Loviisa NPP.

The agreement followed TVEL’s victory in the international tender announced by Fortum in Oct 2005. Formerly the supplies were carried out by BNFL (UK).

According to the agreement, TVEL will supply modified uranium-gadolinium fuel (more economical and safe second-generation fuel) to both units of Loviisa until the end of their service period. The first lot will be supplied in the autumn of 2008.

“It was a hard tender and our victory has confirmed the high level of Russian nuclear technologies,” TVEL President Anton Badenkov said.

Harry Tuomisto, President of Nuclear Services, Fortum Corporation, said: “We have been cooperating with TVEL for many years already and are fully satisfied with the quality and safety of their fuel.”

Russian fuel has been supplied to Loviisa NPP since its launch. Since 1999 TVEL has been supplying fuel for one of the units of the plant due to its victory in an international tender in 1998. According to the agreement, TVEL will supply fuel to the 2nd unit of the plant till 2007 (in 2008 — optional)

The second-generation fuel to be supplied to Loviisa is successfully used by Dukovany NPP (Czech Republic) and Mohovce and Bohunice NPPs (Slovakia).

Loviisa was build under Soviet-Finnish project. It has two units with VVER-440 reactors. The first unit was launched in 1977, the second in 1980. In the 90s the units were modernized, their capacity was raised from 440 MW to 510 MW. Presently, Loviisa is one of the safest NPPs in Europe. On Nov 1 2006 Fortum applied to the Finnish State Council for a license for prolonging the plant’s service period till late 2030.

Loviisa produces 26% of Finland’s total electricity. Finland has one more NPP – Olkiluoto.

The fuel for Loviisa will be produced buy one of the leading enterprises of the Corporation – Machine Building Plant (Elektrostal, Moscow region).

The Finnish tender was the second victory of TVEL in 2006. In May the Corporation won a tender for supplying fuel to Temelin NPP (Czech Republic) in 2010–2020 (TVEL’s rival was Westinghouse, who fueled the plant since 2000).

NOTE

FORTUM

Fortum was set up in 1998 through a merger of IVO and Neste Oyi. In 2005 the oil business was given to Neste Oil Corporation, while Fortum concentrated on electric power engineering.

Fortum is one of the leading electric energy concerns of Northern Europe and the Baltic region. The company produces and sells electricity and heat, operates and maintains energy enterprises.

In 2005 the company’s sales totaled 3.8bln EUR, the operating profit 1.35bln EUR. Fortum’s shares are quoted at Helsinki Stock Exchange.

In Russia Fortum is the only foreign strategic investor in electric power engineering. The concern owns over 1/3 of the shares of Lenergo, St. Petersburg Sales Company, St. Petersburg Transmission Networks, North-Western Managing Energy Company (the companies formerly comprising Lenenergo OJSC). Fortum is the biggest minority shareholder of TGC-1 (Territorial Generating Company), a company comprising the generating assets of the energy complexes of St. Petersburg, Leningrad and Murmansk regions and Republic of Karelia.

For additional information contact Marina Balabanova, tel: +7 (812) 933–03–69.

TVEL CORPORATION

TVEL Corporation is Russian producer of nuclear fuel, a big holding, part of the Federal Nuclear Energy Agency. It consists of 12 enterprises extracting and processing uranium, producing nuclear fuel and its components. The Corporation is one of the 100 biggest companies of Russia. It employs a total of 40,000 people.

Presently, TVEL supplies fuel to 73 reactors in Russia and 13 countries, among them Finland, Bulgaria, Hungary, Slovakia, Czech Republic, Ukraine, Armenia, Lithuania, China.

TVEL supplies fuel to 30 research reactors in Russia and abroad and the ship reactors of the Russian Navy.

For further information visit www.tvel.ru or contact TVEL press service (495) 239–4631, 239–4861, факсу (495) 239–4530 or pressa@tvel.ru.