Negotiations on new structure at Hallsta completed

Negotiations on new structure at Hallsta completed

The previously announced structural change at Hallsta Paper Mill has been the
subject of negotiations pursuant to the Co-Determination at Work Act. These
negotiations have now been completed and the change will be carried out as
planned. Thus Holmen will go ahead with its intention of ceasing paper
production on PM 2 and of closing down the recovered paper line with effect from
1 November this year.

The structural change means that production of standard newsprint at Hallsta
will be reduced, and that PM 2's production of mainly book paper will be
transferred to a larger machine. Together with other changes in the product mix
in the business area, the restructuring will help to reduce Holmen Paper's total
production of standard newsprint by 150,000 tonnes per year.


For further information please contact: 
Hannele Arvonen, Mill Manager, Hallsta Paper Mill, tel +46 175 260 00, +46 70
618 19 17
Ingela Carlsson, Public Relations Director, Holmen AB, tel +46 70-212 97 12.


In its capacity as issuer, Holmen AB is releasing the information in this press
release in accordance with Chapter 17 of the Swedish law (2007:528) regarding
the securities market. The information was distributed to the media for
publication at 06.00 PM CEST on Tuesday 24 June 2008.