UPM AND ANDRITZ/CARBONA TEAM UP FOR BIOMASS BASED SYNTHETIC GAS PRODUCTION

Global forestry company UPM, international technology group Andritz and its
associated company Carbona intend to co-operate on the development of the
technology for biomass gasification and synthetic gas purification.
Gasification technology is required for the production of synthetic gas that
will feed the Fischer-Tropsch based second generation biodiesel production
facility. 

The companies plan to start the joint testing project of Carbona's gasification
technology at the Gas Technology Institute's pilot plant located close to
Chicago in the United States. Laboratory testing and modification of GTI's test
plant would start in July. The institute has equipment which can be applied for
synthetic gas production under conditions similar to commercial scale plants. 

Estimated total costs of the piloting are EUR 5 to 10 million. Pilot testing is
expected to be finished by the end of 2008. The co-operation also covers the
design and supply of a commercial scale biomass gasification plants. 

UPM announced in October 2006 that it will strongly increase its stake in
second generation biodiesel in the next few years and prepares to become a
significant producer of renewable biofuels. The main raw material used in UPM's
biodiesel production will be wood based biomass. The company is already known
for making efficient use of biomass in production of paper and wood products as
well as in energy generation. Locating biodiesel production plants adjacent to
existing UPM pulp or paper mills would further enhance the company's ability to
utilise the wood raw material efficiently. 

Andritz has a comprehensive product portfolio for biomass starting from wood
handling equipment, dryers and pellet machines to fluid bed boilers and
gasifiers for lime kilns. Recent addition of Carbona's special gasification
technology enables further gasification applications to complement the product
family. 

For further information please contact: 
UPM, Hans Sohlström, Executive Vice President, Business Development Biofuels
and Biochemicals, tel. +358 204 15 0542 
Carbona Oy, Kari Salo, CEO, +358 9 540 71550
Andritz Oy, Timo Kauranen, Vice President, Business Development, tel. +358 20
450 5172 

Previous press releases and additional material related to UPM and biofuels and
biochemicals are available on www.upm-kymmene.com => Media Relations => Press
Kits => Biofuels and Biochemicals 

Notes to the editor:

UPM is one of the world's leading forest products groups. The Group's sales in
2006 were EUR 10 billion, and it has about 28,000 employees. UPM's main
products include printing papers, self-adhesive label materials and wood
products. The company has production plants in 15 countries and its main market
areas are Europe and North America. UPM's shares are listed on the Helsinki and
New York stock exchanges. www.upm-kymmene.com 

Andritz Group develops high-tech production systems and industrial process
solutions for various standard and highly specialized products. The Group has
approximately 10,400 employees and runs 35 production/service facilities and
over 120 affiliates and distribution firms around the world. The Group focuses
on five Business Areas: Pulp and  Paper, Rolling Mills and Strip Processing
Lines, Environment and Process, Feed and Biofuel and Hydro Power.
www.andritz.com 

Carbona is a privately owned technology based company started in 1996. It is
specialised in the development and commercialisation of biomass gasification
processes. For the time being it has offices in Finland and USA. Carbona has
worked in close co-operation with Gas Technology Institute throughout its
existence.Contact carbona@carbona.us or carbona@carbona.fi 

Gas Technology Institute (GTI) is a non-profit research & development
organization with nearly 250-person staff based in Des Plaines, Illinois. The
organization performs contract research, development and demonstration projects
as well as plans and manages technology development programmes for the gas
industry and other energy clients. www.gastechnology.org