M-real Corporation Stock Exchange Release 5 February 2009 M-real, part of Metsäliitto Group, launches a new profit improvement programme with an annual target of EUR 80 million. The full annual effect will be visible from 2011. Half of the profit improvements will come from fixed and variable cost savings in the business areas and the other half by streamlining the support functions to reflect the new corporate structure resulting from the divestment of Graphics Papers business at the end of 2008. Most profit improvement measures taken by the business areas are planned to be completed in 2009 with an expected profit impact of EUR 20-25 million. The related non-recurring costs booked during 2009 are expected to be about EUR 18 million."We met last year's profit improvement targets and we were able to cover most of the record-high cost inflation. Based on current estimates, the profit impact of this new programme, combined with the effects of the previous programmes, will clearly exceed the cost inflation in 2009," says Mikko Helander, CEO, M-real. M-real will also implement a separate programme to boost the 2009 cash flow by about EUR 60 million and will include reducing operating net working capital and cutting investments. "2009 is an exceptional year for the industry and requires radical actions. The emphases must be on improving cash flow," continues Helander. 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