22/10/2008 Metsä Tissue's Result January - September 2008 Metsä Tissue sales in January-September were EUR 696 million (632) and operating profit EUR 33 million (22). Sales grew 10% compared to last year on the back of higher sales volumes (+4%) and price/mix changes (+6%). The sales growth of Metsä Tissue's own brands - Lambi, Katrin, Serla and Mola - as well as customer brands was stable. Negative impacts from the increasing costs of raw materials, energy and transportation have been compensated partly by the company's efficiency improvement projects and partly by increased prices. Lambi was voted by Swedish consumers as the fourth most beloved brand. New Lambi TV commercials were rolled out in September. A new unique product, Serla Cleaning Paper, was introduced onto the Finnish market and has created a completely new product category. Serla Cleaning Paper, with great tensile and wet strength, is non-linting and is designed for wiping and polishing surfaces. The Mola brand was refreshed with a new design and the new TV commercial was rolled out in Poland. The Away-from-Home business area harmonised the product offering by integrating its Saga brand into the Katrin brand. At the same time, the products were grouped into three different quality grades - Plus, Classic and Basic. The expansion of business activities in Russia continued with the start up of the second converting line in the Naro Fominsk distribution and converting facility. The line produces Lambi, Mola and Katrin products. Production has started on the new Away-from-Home rewinder in Krapkowice, Poland. Construction of new warehouses in Zilina, Slovakia, and in Düren, Germany, is progressing according to schedule. The warehouse in Bork, Germany, was closed and sold. The operating profit includes a related one-time expense of EUR 5.2 million. A year long maintenance management project was initiated in the company's Swedish mills in September. The aim is to document the best practices in maintenance and share them Metsä Tissue wide. In September, Metsä Tissue signed a EUR 238 million syndicated loan agreement. The loan is a five-year credit facility financing the current facility which is due to mature in June 2009. The Mandated Lead Arrangers are Calyon, DnB Nord, Nordea and SEB. A total of eight banks are participating in the loan arrangement. The weakening growth prospects in Europe are not expected to have a significant influence on the sales volumes of tissue and cooking papers. Higher costs, energy and transport costs in particular, are still causing cost pressures and the transfer of these into sales prices will continue.