Billerud appeals against fine imposed by Environmental Protection Agency

Billerud appeals against fine imposed by Environmental Protection Agency

The Swedish Environmental Protection Agency has today fined Billerud around 
SEK 19.5 million for an error the company made in transferring emissions
allowances in 2006. Billerud will appeal against this decision and will only be
posting a 
SEK 40,000 reserve item to cover the fine in its year-end accounts for 2007.

Billerud has both reported and audited the correct amount of emissions
allowances for 2006 in accordance with current regulations. However, due to an
administrative error, Billerud's emissions allowances for its Skärblacka and
Karlsborg mills were transferred to the wrong account in the Swedish Emission
Trading Registry, SUS. The Swedish Environmental Protection Agency has now
decided to punish this error with a fine of around MSEK 19.5.

Billerud will appeal against the Agency's decision.

Billerud notes the following in the Agency's statement: ”The Environmental
Protection Agency agrees with the company that the situation that has arisen has
gained unreasonable consequences.”

”We have done everything expected of us regarding the reporting of emissions
allowances, apart from one item where allowances worth around SEK 53,000 went
into the wrong account in the SUS register. We have taken advice from
independent experts who consider that the legal grounds for the Agency's verdict
are doubtful and that the fine in our case is not in reasonable proportion to
the error. This will now go to appeal. As stated in our interim report we do not
believe there are grounds for setting up a reserve equivalent to the amount the
Agency has announced today,” says Per Lindberg, President and CEO of Billerud
AB.

Solna 10 December 2007
Billerud AB (publ)



Per Lindberg
President and CEO


For further information, please contact: 
Per Lindberg, President and CEO, +46 8 553 335 01

The information is such that under the Swedish Securities Exchange and Clearing
Operations Act, Billerud AB is obliged to publish it.

Billerud is a packaging paper company. The company's business concept is to
offer customers packaging materials and solutions that promote and protect their
products - packaging that is attractive, strong and based on renewable
materials. Billerud has a world-leading position within several product segments
including paper for consumer packaging and industrial applications. Production
takes place at three integrated pulp and paper mills in Sweden and at one paper
mill in the UK.