Interim Report January-March 2008

Interim Report January-March 2008

                                   Quarter                     Full year
MSEK                 1-08           4-07            1-07           2007
Net turnover         4 875          5 073          4 787         19 159
Operating profit       446          1 039            634          2 843
Operating profit excl.
items affecting
comparability*         446            482            634          2 286
Profit after tax       271            341            397          1 505
Earnings per share, 
SEK                    3.2            4.0            4.7           17.8
Return on equity, %    6.4            8.1            9.7            9.2

*  Items affecting comparability relate to a write-down of fixed assets and a
positive revaluation of forests of net MSEK 557 carried through in the fourth
quarter of 2007.
·  The Group's net turnover for January-March 2008 amounted to MSEK 4
875(January-March 2007: 4 787).

·  Profit after tax was MSEK 271 (397).

·  Earnings per share amounted to SEK 3.2 (4.7). Return on equity was 6.4%
(9.7).

·  The operating profit was MSEK 446 (634). This result was adversely affected
by lower newsprint prices and higher cost of wood.

The operating profit excluding items affecting comparability was MSEK 36 lower
than during the fourth quarter of 2007.

·  The demand for newsprint in Europe fell slightly during the first quarter.
The price of newsprint fell. In Holmen Paper's case, the price
was on average some 4% lower than in the first quarter of 2007, whereas
deliveries rose by 3%.

The market situation for virgin fibre board in Europe weakened slightly during
the first quarter. Iggesund's deliveries were 5% lower than
during the corresponding period the previous year. Prices were stable.

For further information please contact:
Magnus Hall, President and CEO, tel +46 8 666 21 05
Anders Almgren, CFO, tel +46 8 666 21 16
Christer Lewell, Public Relations Director, tel +46 8 666 21 15.