Strike shuts down all production at Billerud's Gruvön paper mill

The Swedish Paper Workers Union has during the weekend turned down the
mediators' offer and is consequently deciding to go through with its expanded
notice, which for Billerud means total work stoppage at Billerud's Gruvön paper
mill that will come into effect as of today 18.00 CET.  

The loss of production from Gruvön's paper mill is expected to affect Billerud's
earnings by approximately SEK 4 million per day exclusive of compensation from
the Confederation of Swedish Enterprise's strike fund (Sw. konfliktfond).

Billerud's paper mill in Skärblacka has been at a standstill since 16 April due
to the Swedish Paper Workers Union's strike. The total cost to Billerud of these
two mills with production stoppages amounts to approximately SEK 7 million per
day exclusive of compensation from the Confederation of Swedish Enterprise's
strike fund. 

The Confederation of Swedish Enterprise has pledged that full compensation from
strike funds will be paid to members affected by this industrial action.

“This conflict feels totally unnecessary and is a tragedy for everyone who works
in the Swedish paper industry. We apologise to our customers for the damages we
are causing them and hope that those responsible for these damages will come to
their senses as soon as possible so that we can start deliveries again,” says
Billerud's President and CEO, Per Lindberg.

For further information, please contact: 
Per Lindberg, President and CEO, +46 8 553 335 01 or +46 702 48 15 17
Bertil Carlsen, CFO, +46 8 553 335 01 or +46 730 21 10 92

The information is such that Billerud is obligated to publish under the Swedish
Securities Market Act. Submitted for publication at 08.50 a.m. on 26 April 2010.

Billerud's business concept is to offer demanding customers packaging materials
and solutions that promote and protect their products - packaging that is
attractive, strong and based on renewable materials. Billerud has a
world-leading position within several product segments including paper for
consumer packaging and industrial applications. Production takes place at three
integrated pulp and paper mills in Sweden and at one paper mill in the UK.