Holmen to build new sawmill in Norrköping

Holmen to build new sawmill in Norrköping

Holmen's Board decided on Friday to invest approximately SEK 1.1 billion in a
new sawmill adjacent to the Braviken paper mill in Norrköping, Sweden. When it
reaches its rated capacity the sawmill will be able to produce 750,000 cubic
metres of whitewood sawn timber per year. Production start is planned for the
autumn of 2009.

The investment involves a sawmill with the highest possible productivity and
cost efficiency. The mill's output will consist of structural timber intended
for the main markets in Scandinavia and Great Britain, with additional sales
going to the rest of Europe, Japan and the USA.

When operating at its rated capacity, the sawmill will have approximately 140
employees.

Holmen's President and CEO Magnus Hall states that once the new sawmill in
Norrköping is in production Holmen will be a leading supplier of structural
timber too. Holmen Timber's sawmill in Iggesund - which has an annual output of
300,000 cubic metres of redwood sawn timber - concentrates is marketing
primarily on the joinery industry.

“As a large forest-owner and player on the European paper and paperboard markets
it is natural for us to develop our business on the sawn timber market too,”
says Magnus Hall.

“The integration of the existing printing paper mill with the sawmill is
expected to result in valuable synergies in wood procurement and joint
infrastructure at the mill site, as well as possibilities for effective energy
solutions. The Group will gain access to large volumes of biofuel from the
sawmill and forest biofuel in connection with final harvesting. These fuels
could eventually be utilised within the framework of this integrated sawmill and
paper mill”.

For further information, please contact
Magnus Hall, President and CEO, tel. +46 8 666 21 00 
Håkan Lindh, President of Holmen Timber, tel. +46 650 280 97.



In its capacity as issuer, Holmen AB is releasing the information in this press
release in accordance with Chapter 9 a § 3 of the Swedish Securities Exchange
and Clearing Operations Act (1992:543). The information was distributed to the
media for publication at 12.36 hrs a.m. on Friday 26 October 2007.