29/10/2008 Metsä Tissue continues expanding its activities in Russia The positive development of the Russian economy, a modern retail trade and the demand for higher standards of comfort have encouraged Metsä Tissue to expand the company's business from exports to local production. “The start-up of local converting operations near Moscow is an important strategic step for Metsä Tissue - we also aim to develop our brands and business further in Russia,” comments Hannu Kottonen, CEO. The inaugurated converting plant consists presently of two production lines. The first line, dedicated for the Away-from-Home products, was started in May 2008 and was quickly followed by the installation of the second line for the company's consumer products. The first consumer products were converted on the new line in August. Thanks to local converting in Russia, today Metsä Tissue manufactures most of its products locally under the brands Lambi, Mola and Katrin. The brands stand as a guarantee for high quality and reliability - something the Russian consumers are already familiar with. In practice, local converting also means enhanced product availability, shorter transport distances and thus a smaller environmental footprint. Metsä Tissue's export business to Russia began at the beginning of the 1990s and in 2006 Metsä Tissue LLC was registered as a local company. Today, Metsä Tissue LLC consists of a sales office in Moscow as well as warehousing, distribution and converting operations in Naro-Fominsk, 70 km from Moscow. The company employs about 70 people and aims to increase the number of employees in the near future. Both the Lambi and Mola brands are aimed towards consumer sectors with a product family including bathroom tissues, household towels, tissue handkerchiefs and facial tissues. Lambi is the market leader in the premium segment in the Nordic countries and has a strong market position in Russia. Mola represents good quality for mainstream consumer segments offering a wide product family for every household. Katrin, the well-known Away-from-Home brand, meets specific hygiene, health and comfort demands from professional hygiene requirements in the health care, industrial, food service and office sectors to public washrooms. Through its dispensing systems, compatible tissue papers and hand towels, air fresheners and waste bins, Katrin can meet any Away-from-Home need. The brand has a unique “Less is More” concept for saving work, costs and, of course, the environment. For more information, please contact; Hannu Kottonen, CEO Tel: +358 1046 54959 Mobile: +358 500 532 235 E-mail: hannu.kottonen[at]metsatissue.com Paavo Liestalo, SVP, Consumer Northern Europe and Russia Tel: +358 1046 55148 Mobile: +358 50 325 2378 E-mail: paavo.liestalo[at]metsatissue.com Kari Muttilainen, SVP, Away-from-Home business Tel: +358 10 469 4563 Mobile: +358 500 634 906 E-mail: kari.muttilainen[at]metsatissue.com