Holmen - Reduction in newsprint production capacity

Holmen - Reduction in newsprint production capacity

Holmen intends to reduce the volume of standard newsprint by a total of 150,000
tonnes/year by adjusting the Holmen Paper business area's production strategy
and product mix. This process will include a review of the Hallsta paper mill's
structure with the objective of discontinuing production on PM2, the oldest of
the mill's four paper machines, which has a capacity of around 110,000
tonnes/year.

“The high costs of wood, recovered paper and energy make it essential to
overhaul the mill's structure in order to create better conditions for the
future. This applies to the paper production as well as the energy and pulp
production at Hallsta,” says Magnus Hall, Holmen's President and CEO.

Revaluation of Holmen's forests

Following a new valuation of Holmen's forest holdings the value of the forest is
calculated to increase by around MSEK 2,100. This change in value will result in
an increase of around MSEK 590 in deferred tax liability. The revaluation will
be taken into the income statement for the fourth quarter of 2007.

Write-down of goodwill 
and fixed assets at Holmen Paper

Following a new valuation of goodwill and fixed assets Holmen will write down
the value of its goodwill by some MSEK 550. The value of fixed assets will also
be written down by an amount corresponding to around MSEK 1,050. The reason for
this measure is the high costs of wood, recovered paper and energy. Both the
goodwill and the other assets are in the accounts of Holmen Paper. The
write-down will be taken into the income statement in the fourth quarter of
2007.

The value of Holmen Timber's fixed assets will be written up by some MSEK 60 in
the fourth quarter of 2007. This revaluation relates to previously written down
asset values.


For further information please contact: 
President and CEO Magnus Hall
CFO Anders Almgren
Tel. +46 (0)8 666 21 00.


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 09.55 hrs a.m. on 10 December 2007.