M-real's divestment of Graphic Papers expected to be closed at year end 2008

M-real Corporation Stock Exchange Release 15 December 2008

In late September 2008, M-real announced the sale of its Graphic
Papers business to the South African Sappi Limited for EUR 750
million.

The transaction includes the Kangas, Kirkniemi, Biberist and
Stockstadt mills with a total coated paper production capacity of
about 1.9 million tons per annum as well as several long-term
commercial agreements.

The competition authorities approved the transaction in October 2008.
In early November 2008 Sappi's extraordinary shareholders' meeting
accepted the deal and Sappi's rights offering was initiated. Sappi's
rights offering was well received by the market and investors and it
was successfully finalized on 12 December 2008.

The closing conditions have been satisfied and the transaction is
expected to be closed at year end 2008.

M-REAL CORPORATION

Further information:
Seppo Parvi, CFO, tel. +358 10 465 321
Juha Laine, Vice President, IR and Communications, tel. +358 10 465
4335