UPM's President and CEO, Jussi Pesonen:"Development of Botnia should be focused on pulp users' needs

UPM-Kymmene Corporation Press Release   February 1, 2007 at 16:30

UPM's President and CEO, Jussi Pesonen:
"Development of Botnia should be focused on pulp users' needs"

UPM today commented on M-real Corporation's decisions to reject UPM's EUR 500
million offer for a 15% stake in the pulp producer Botnia and sell a 9 % stake in
the company to the Metsäliitto Group for EUR 240 million.

"We made the best offer. In our offer we stated that we would be ready to discuss
other alternatives as appropriate. During November-January UPM made multiple
requests to M-real to start negotiations. However, they did not lead to
negotiations", said Mr Pesonen during a press conference on 2006 earnings.

"We believe that both M-real and UPM share common business interests in Botnia as
major pulp users. Cost efficient high-quality pulp is an important component of
value creation for both of us."

Pesonen said that the business goes on and the development of Botnia will
continue with UPM's support. "The value of Botnia, however, will be enhanced
only, if it is developed focusing on pulp users' needs."


UPM-Kymmene Corporation


Pirkko Harrela
Executive Vice President, Corporate Communications


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