Stora Enso's Annual Report on Form 20-F published: New market outlook and Berghuizer Mill closing schedule finalised

Stora Enso's Annual Report on Form 20-F was filed with the Securities
and Exchange Commission (SEC) on 29 March 2007. The Annual Report on
Form 20-F will be available in electronic format (pdf) on the Group's
website www.storaenso.com/investors.


Near-term Outlook

In Europe:
Demand for uncoated magazine paper is expected to ease after strong
growth in 2006. Coated magazine paper demand improved in early 2007
and is expected to be moderately positive for the year. Modest demand
growth is expected for newsprint. Demand for uncoated fine paper
remains good, particularly in Eastern Europe. Demand is healthy and
strong order inflow is expected for coated fine paper and packaging
boards. Demand for wood products is expected to be healthy in most
markets.

Contract negotiations for newsprint prices have been completed and
prices increased by an average of 5% in Western Europe. Magazine
paper prices have declined at the beginning of 2007 and may remain
under pressure for non-contractual business. Further price increases
are expected in uncoated fine paper, and increases are being
negotiated in coated fine paper.

Some moderate increases in packaging board prices are implemented.
Some production curtailments are expected at Enocell Pulp Mill (part
of Packaging Boards) in the second quarter of 2007 due to shortage of
raw material. In wood products further product price movements are
likely to reflect wood costs.


In North America:
Demand for newsprint is expected to decline further. Demand for
magazine paper, particularly coated magazine paper, remains weak due
to seasonal reasons and underlying end-use weakness. Demand in coated
fine paper is forecast to remain flat.

Prices for publication papers are still declining. Coated fine paper
reel prices are under pressure, but some price increases for sheet
products are being negotiated.

In China, coated fine paper demand is expected to improve later in
the spring and prices to firm up.

In Latin America, modest growth in demand for coated magazine paper
is anticipated, but downward price pressure is increasing.

Operating cost inflation is forecast to be 2.0% to 2.5% higher in
2007 than 2006, primarily because of increased wood costs, including
the impact of the Russian duties on wood.

Berghuizer Mill closing schedule has been finalised
The schedule for closing Berghuizer Mill in the Netherlands has now
been finalised. Paper machine (PM) 7 will permanently cease
production on 16 April 2007 and PM 8 on 31 October 2007. The total
capacity of these machines is 245 000 tonnes of uncoated fine paper
per year. Approximately 80 000 tonnes of Berghuizer Mill's annual
production for customers is expected to be transferred to Stora
Enso's Nymölla Mill in Sweden. The annual capacity of Nymölla Mill
remains unchanged at 485 000 tonnes, but the mill has made some
investments in asset quality to supply products with higher value
added to improve its customer service.



For further information, please contact:
Hannu Ryöppönen, CFO, tel. +358 2046 21450
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659
Ulla Paajanen-Sainio, VP, Investor Relations and Financial
Communications,
tel. +358 40 763 8767

www.storaenso.com
www.storaenso.com/investors


STORA ENSO OYJ



p.p.                  Jussi Siitonen    Jukka Marttila