M-real Corporation Stock Exchange Release 12.10.2007 M-real, part of the Metsäliitto Group, has agreed to sell Zanders Reflex speciality paper mill in Düren, Germany to Arjowiggins Group, a world leader in speciality papers. M-real will book a loss of approximately MEUR 20 from the transaction. It has no material impact on M-real's operating profit excluding non-recurring items. The transaction is expected to be completed by the end of this year and it will be booked in the result for the last quarter of 2007."The sale of Zanders Reflex paper mill is part of M-real's strategic review. The mill is the only M-real plant that produces carbonless paper, so M-real is effectively withdrawing from that business. The value of Reflex fixed assets has already been written off earlier", says Mikko Helander, CEO of M-real. M-real Zanders Reflex paper mill started operating in 1857. The mill has four paper machines, which jointly have an annual capacity of 100,000 tonnes of speciality paper. It employs approximately 470 people and has sales of approximately MEUR 150. The transaction is subject to approval by the competition authorities. M-REAL CORPORATION Further information: Seppo Parvi, CFO, tel. +358 10 469 4321 Anne-Mari Achrén, Communications, tel. +358 10 469 4541