Stora Enso Oyj - Changes board/management/auditors

Stora Enso launches new Group organisation to improve long-term profitability

Company will account for an impairment charge of about EUR 1 300
million in third quarter of 2007.

Stora Enso Oyj Stock Exchange Release 5 September 2007 at 06.00 GMT

Stora Enso is reorganising its operations from the current four
divisions into eight separate business areas: Fine Paper, Merchants,
Consumer Board, Industrial Packaging, Magazine Paper, Newsprint,
North America and Wood Products. An impairment charge totalling about
EUR 1 300 million will be accounted for as a non-recurring item
without cash impact in the third quarter of 2007."The main objectives of the reorganisation are to give business area
leaders and their teams clear responsibility for improving financial
performance, remove layers of management and to speed up
decision-making. These changes will also improve our external
transparency through enhanced reporting. The new structure will
further focus the portfolio analysis work and facilitate scalability
for the future, strengthening Stora Enso's position with regard to
potential industry consolidation," says Stora Enso CEO Jouko
Karvinen."Through these organisational changes, we also seek to improve the
performance of our North American operations by reorganising them
into a separate entity with full profit and loss responsibility
reporting directly to me. Key criteria for defining the new business
structure were identifying entities with strong synergies within the
business and to a large extent their own customer base, while keeping
customer interfaces simple and sharing relevant Group-level
synergies."

The new organisational structure is effective immediately. Financial
reporting in the third quarter results to be published on 25 October
2007 will be based on the new eight business areas. Historical
figures based on the new business areas will be reported separately
by 15 October 2007.

Executive Management Appointments"I am delighted to be bringing several experienced Stora Enso leaders
into the Group Executive Team (GET). As a team, we have one objective
- to strengthen the company and improve profitability. The new Group
Executive Team has a good balance of pulp, paper and board expertise
combined with experience from outside the industry in Hannu Ryöppönen
and myself. We need to speed up decision-making and implementation of
our cost-reduction programmes, while continuing to provide excellent
customer service. This is what I need from the new team, and all the
teams around them," says CEO Karvinen.

The new organisation and its leadership are as follows:

+-------------------------------------------------------------------+
| Reporting Unit     | Executive         | Responsibility           |
|                    | Responsible       |                          |
|--------------------+-------------------+--------------------------|
| Fine Paper         | Aulis Ansaharju   | Fine Paper, Country      |
| Business Area      |                   | Manager Finland          |
|--------------------+-------------------+--------------------------|
| Consumer Board     | Mats Nordlander   | Consumer Board,          |
| Business Area,     |                   | Merchants, Market        |
| Merchants Business |                   | Services                 |
| Area               |                   |                          |
|--------------------+-------------------+--------------------------|
| Industrial         | Veli-Jussi Potka  | Industrial Packaging     |
| Packaging Business |                   |                          |
| Area               |                   |                          |
|--------------------+-------------------+--------------------------|
| Magazine Paper     | Hannu Alalauri    | Magazine Paper           |
| Business Area      |                   |                          |
|--------------------+-------------------+--------------------------|
| Newsprint Business | Juha Vanhainen    | Newsprint                |
| Area               |                   |                          |
|--------------------+-------------------+--------------------------|
| North America      | John Gillen*      | North American           |
| Business Area      |                   | businesses               |
|--------------------+-------------------+--------------------------|
| Wood Products      | Elisabet Salander | Wood Products, Wood      |
| Business Area      | Björklund         | Supply and Pulp Supply   |
|-------------------------------------------------------------------|
| Group Function Leaders                                            |
|-------------------------------------------------------------------|
|                    | Hannu Ryöppönen,  | Finance and Strategy,    |
|                    | Deputy CEO and    | Purchasing               |
|                    | CFO               |                          |
|--------------------+-------------------+--------------------------|
|                    | Bernd Rettig      | Technology and R&D,      |
|                    |                   | Operations Improvement,  |
|                    |                   | Logistics and            |
|                    |                   | Investments, Country     |
|                    |                   | Manager Germany          |
|--------------------+-------------------+--------------------------|
|                    | Christer Ågren    | HR Services, Leadership  |
|                    |                   | Development, IT, Country |
|                    |                   | Manager Sweden           |
+-------------------------------------------------------------------+



























All members other than the CEO and Deputy CEO are Executive Vice
Presidents (EVP).

*John Gillen will continue heading Stora Enso's North America
business area through a transitional period. Details of the North
American business and organisational structure will be announced in
due course.

Financial impact of the impairment charge
The impairment charge will comprise about EUR 300 million on goodwill
and about EUR 1 000 million on fixed assets. The fixed asset
impairment will have a one-time positive tax impact of about EUR 100
million. The estimated distribution of the impairment between the
business areas will be announced by 15 October 2007. The impairment
charge arises from a number of factors including the reorganisation
into eight separate business areas, increased wood costs mainly
driven by export duties on wood from Russia, the poor outlook for
magazine papers, rising interest rates and adverse currency
movements.
The impact of the impairment charge on the Group's financial figures
will be as follows:


+-------------------------------------------------------------+
| Annual depreciation reduction           | EUR 100 million   |
|-----------------------------------------+-------------------|
| Capital employed reduction              | EUR 1 200 million |
|-----------------------------------------+-------------------|
| Earnings per share (annualised)         | EUR +0.11         |
|-----------------------------------------+-------------------|
| Debt/equity ratio                       | From 0.55 to 0.64 |
|-----------------------------------------+-------------------|
| Return on capital employed (annualised) | +1.4% -points     |
+-------------------------------------------------------------+


The discount rate used in the impairment calculation varied from 8.5%
to 9.7% (pre-tax) based on business/country mix. The Group's pre-tax
weighted average cost of capital (WACC) is 9.1%.  Currency rates
prevailing at 31 July 2007 were used in calculating the impairment
charge estimate; the actual impairment charge in euros will be
determined using rates prevailing at the closing of the annual
accounts for 2007.

For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410, +44 20 7016 3120
Hannu Ryöppönen, CFO, tel. +358 2046 21450, +44 20 7016 3114
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 20 7 016 3146
Ulla Paajanen-Sainio, VP, Investor Relations and Financial
Communications,
tel. +358 40 763 8767

PRESS CONFERENCE CALL
CEO Jouko Karvinen and Deputy CEO & CFO Hannu Ryöppönen will be
hosting a combined press conference call and webcast today at 11:30
Finnish time (09:30 UK time, 04:30 US Eastern time).  If you wish to
participate, please dial (quoting 'Stora Enso'):
+44 (0) 20 7138 0842 (from the UK)
+358 (0) 9 6937 9591 (from Finland)
+46 (0) 8 5853 6966 (from Sweden)
+1 718 354 1153 (from the USA)

The live webcast may be accessed at www.storaenso.com/investors.

Further details of replay numbers can be found at
www.storaenso.com/investors

ANALYST CONFERENCE CALL
CEO Jouko Karvinen and Deputy CEO & CFO Hannu Ryöppönen will be
hosting a combined analyst conference call and webcast this afternoon
at 16:30 Finnish time (14:30 UK time, 09:30 US Eastern time).  If you
wish to participate, please dial (quoting 'Stora Enso'):
+44 (0) 20 7138 0818 (from the UK)
+358 (0) 9 6937 9590 (from Finland)
+46 (0) 8 5352 6456 (from Sweden)
+1 718 354 1171 (from the USA)

The live webcast may be accessed at www.storaenso.com/investors.

Further details of replay numbers can be found at
www.storaenso.com/investors

APPENDIX   CVs of the new members in Group Executive Team (GET)


Photos of new GET members are available at
http://bmt.storaenso.com/storaensolink.jsp?imageid=070904
Please copy the link into your web browser.

Printable photos of other GET members can be found at
www.storaenso.com/mediacentre/imagebank/executives

www.storaenso.com
www.storaenso.com/investors


APPENDIX

New members in Group Executive Team (GET):

Aulis Ansaharju
Executive Vice President, Fine Paper

Born 1951. M.Sc.(Paper tech.), MBA. Finnish citizen.

Joined the company in 1975. Mill manager, Enso-Gutzeit Oy Tervakoski
Mill 1990-1992. Mill manager, Enso Oy Imatra Mills 1993-1996. Vice
President and Senior Vice President positions in Corporate Human
Resources in Enso Oy and Stora Enso Oyj 1996-2000. Senior Vice
President, Fine Paper in Stora Enso North America 2000-2003. Senior
Vice President, Business Development, Stora Enso Fine Paper
2003-2004. Senior Vice President, Graphic Papers, Stora Enso Fine
Paper 2004-2007.

Mats Nordlander
Executive Vice President, Consumer Board, Merchants and Market
Services

Born 1961. Dip.Eng. Swedish citizen.

Joined the company in 1994. General Manager Papyrus Sweden AB
(previously Pappersgruppen AB) 1994-1998, Senior Vice President,
Marketing and Supply, Papyrus AB 1998-2002, Vice President, Marketing
and Sales 2002-2003, Stora Enso Fine Paper, London, President,
Papyrus AB 2003-2007. Member of the Board of Directors of several
subsidiaries and associated companies. Member of Swedish Industrial
Board of Axcel private equity fund, Member of the Boards of Tysk
Svenska Handelskammaren.

Marketing and Sales Director, SCA Fine Paper 1992-1994, Production
Department Manager SCA Wifstavarf 1989-1992, Part owner of Flexible
packaging company, Nordlandemballage AB 1983-1988.

Veli-Jussi Potka
Executive Vice President, Industrial Packaging

Born 1959.  M.Sc. (Econ.). Finnish citizen.

Joined Enso-Gutzeit in 1983. Corporate Controller for Enso Group Oyj
and Stora Enso Oyj 1993-2000. Managing Director, Stora Enso Packaging
Oy 2000-2004. Senior Vice President, Business Development, Stora Enso
Packaging Boards between April 2004 and April 2005. Senior Vice
President, Industrial Packaging Business Area 2005-2007. Member of
the Board of Directors of several subsidiaries and associated
companies.

Hannu Alalauri
Executive Vice President, Magazine Paper

Born 1959, M.Sc. (Chem.). eMBA. Finnish citizen.

Joined the Chemical Division of Oulu mill site (former Oulu Oy) in
1985. Vice President of Varkaus Fine paper mill 1996-1999,  Senior
Vice President Stora Enso Office Papers 1999-2000, Senior Vice
President Stora Enso Graphic Papers 2000-2004, Managing Director of
Stora Enso Packaging Corrugated Business 2004-2005, Senior Vice
President HR Finland and HR Packaging Boards Division 2006-2007.
Member of the board of several subsidiaries and associated companies.

Member of the Business advisory board of BioFund Oy LTD. Chairman of
Supervisory board of Pohto Management Training Institute.

Juha Vanhainen
Executive Vice President, Newsprint

Born 1961. M.Sc. (Eng.). Finnish citizen.

Joined Stora Enso Oulu in 1990. General Manager and Mill Director,
Stora Enso Fine Paper, Oulu Mill 1999-2003. Senior Vice President,
Stora Enso Fine Paper, Office Paper 2003-2007.


STORA ENSO OYJ


p.p.  Leena Bergqvist    Jukka Marttila