M-real Corporation Stock Exchange Release 14 January 2009 M-real, part of Metsäliitto Group, starts statutory negotiations at Hallein mill, Austria, targeting to discontinue the paper production at the end of April 2009. At Gohrsmühle mill, Germany, the standard fine paper production will be discontinued during April and its effects will be reviewed. At Gohrsmühle, it has already been decided that the production of speciality papers as well as uncoated fine paper reels and folio sheets will be expanded. The European paper business has over the past years been suffering from overcapacity and the both mills have been making losses for a long period of time. Since September 2007, M-real has examined possibilities to solve the problems related to Hallein and Gohrsmüle. During the recent months, M-real has been approached by local parties in regard to purchasing Hallein mill. These contacts have included proposals to continue coated fine paper production at Hallein, and at a later time, to change production to speciality papers, folding boxboard and liquid packaging board. However, from M-real's viewpoint these proposals have not included any viable business development opportunities or financing plans. The combined standard coated fine paper production capacity of Hallein and Gohrsmühle is about 0.6 million tonnes per annum. The statutory negotiations related to the discontinuation of paper production at Hallein concern some 480 people."The strategic review related to the Hallein pulp mill continues. We aim to, in good cooperation with local parties, find a solution that secures jobs at the Hallein pulp mill," concludes Mikko Helander, CEO of M-real. M-REAL CORPORATION Further information: Seppo Parvi, CFO, tel. +358 10 465 4321 Juha Laine, Vice President, IR and Communications, tel. +358 10 465 4335