Environmental Court of Appeal confirms sanction

Environmental Court of Appeal confirms sanction

On September 14, 2010 the Environmental Court of Appeal decided that
Billerud, in accordance with the decision from the Environmental Court
and the Swedish Environmental Protection Agency, is to pay a sanction of
approximately SEK 19.5 million.

On 10 December 2007 the Swedish Environmental Protection Agency decided
to impose a sanction on Billerud of approximately SEK 19.5 million for
inaccurate reporting of emission rights for 2006. According to existing
rules, Billerud performed an audit and a report of the correct number of
emission rights for 2006. As the result of an administrative error,
Billerud's emission rights for the facilities in Skärblacka and
Karlsborg were assigned to the wrong account in the Swedish Emission
Trading Registry (SUS). Billerud lodged an appeal against the decision
to the Environmental Court, which ruled in September 2009 that Billerud
should pay the fine in accordance with the Swedish Environmental
Protection Agency's decision. Billerud then chose to appeal against the
decision to the Environmental Court of Appeal which has now decided that
Billerud should pay the sanction.

Since Billerud made a provision for this amount in 2009, today's
judgement will have no impact on the company's earnings for 2010.

“We accept the decision of the Environmental Court of Appeal, but in our
opinion a sanction of SEK 19.5 is not proportionate,” says Billerud's
President and CEO, Per Lindberg.

For further information, please contact: Per Lindberg, President & CEO
Billerud AB, +46 8 553 335 01 or +46 702 48 15 17.