Interim Report January-March 2007

Interim Report January-March 2007

                                     Quarter               Full year
MSEK                      1-07        4-06        1-06       2006
Net turnover             4 787       4 830       4 579     18 592
Operating profit           634         590         619      2 303
Profit after tax           397         369         406      1 459
Earnings per share, SEK    4.7         4.4         4.8       17.2
Return on equity, %        9.7         9.0        10.0        9.0 
·  The Group's net turnover for January-March 2007 amounted to MSEK
4 787 (January-March 2006: 4 579).

·  The profit after tax was MSEK 397 (406).

·  Earnings per share amounted to SEK 4.7 (4.8). Return on equity was
9.7% (10.0).

·  The operating profit was MSEK 634 (619). The result was favourably
affected by higher newsprint prices, while costs increased, mainly for
wood and recovered paper.

The operating profit for the first quarter was MSEK 44 higher than that
for the fourth quarter.
·  The market situation for newsprint in Europe was stable during the
first quarter. Holmen Paper's deliveries were 4% higher than in the
first quarter of 2006. The prices of Holmen Paper's products were on
average some 4% higher than in the corresponding period in the previous
year.

The market situation for virgin fibre board in Europe was strong during
the first quarter. Iggesund Paperboard's deliveries remained at a high
level but were 2% lower than in the first quarter of 2006. Price
increases have been announced.

For further information please contact:
Magnus Hall, President and CEO, tel +46 8 666 21 33
Anders Almgren, CFO, tel +46 8 666 21 16
Christer Lewell, Public Relations Director, tel +46 8 666 21 15.