M-real agrees sale of power company shares

ESPOO, Finland, May 27, 2008 (Press Release) - M-real Corporation and Kymppivoima Oy have today signed a sales contract according to which M-real sells Kymppivoima 100,000 B2 shares in Pohjolan Voima (PVO). The shares entitle to electricity from the new Olkiluoto nuclear power plant that is currently being built. The shares represent approximately 6.7% of the total amount of B2 shares and voting rights. The sales price of the shares is Euro 80 million and the transaction is planned to be put into effect by 25 June 2008. M-real will book a non-recurring gain of about Euro 74 million from the transaction.

After the transaction M-real will own about 3% of the total amount of PVO B2 shares and voting rights. In addition, M-real owns about 11% of PVO B shares that entitle to electricity from the two current Olkiluoto nuclear power plants. M-real's self-sufficiency in electricity is about 60% composed of own generation and ownerships in power plants. Today's transaction does not have impact on M-real's self-sufficiency in electricity.

This sale is a part of M-real's minimum Euro 200 million asset divestment programme launched in February 2008. M-real has so far divested assets worth Euro 162 million under its asset divestment programme. Asset items divested are the PVO shares and the New Thames mill. The asset divestment programme is planned to be completed by the end of the first quarter of 2009.