M-real - Company Announcement

New profit improvement actions planned in Speciality Papers business area

M-real Corporation Stock Exchange Release on 9 December 2009 at 14.00

New profit improvement actions planned in Speciality Papers business
area

M-real Corporation, part of Metsäliitto Group, is planning new
significant internal measures to improve the Speciality Papers
business area's profitability. The main measures are the planned
closures of two speciality paper machines in Reflex mill and the
streamlining of the organizations in both Gohrsmühle and Reflex
mills.

Speciality Papers business area includes the M-real Zanders paper
mills Reflex and Gohrsmühle in Germany. In Reflex there are currently
four and in Gohrsmühle two paper machines and in both mills there are
several converting lines. Gohrsmühle mill's production portfolio has
earlier this year been radically changed by discontinuing the
standard coated fine paper production and expanding the uncoated fine
paper and speciality paper production.

Paper machines 1 and 5 are intended to be closed in Reflex mill
accounting for 80,000 tonnes of annual capacity. The production of
carbonless papers is planned to be transferred to Gohrsmühle mill and
the converting to remain in Reflex. Reflex will continue the
production of premium fine and digital imaging papers. Product
offering and supply capability of M-real Zanders will remain
unchanged.

At the same time the organization and the management model in M-real
Zanders is planned to be streamlined."The production conversion in M-real Zanders has been implemented
according to targets. Despite the unfavourable general market
situation the new uncoated fine papers were successfully launched in
a short time and customer feedback has been very positive. Work to
improve the profitability of M-real Zanders continues based on the
measures announced today," says Mikko Helander, CEO of M-real.

Negotiations to implement the planned machine closures and
organizational changes will start on in January 2010. Implementation
of the planned measures is planned to occur during the first half of
2010. Related non-recurring costs will be determined once
negotiations are completed. Annual profit improvement target for the
planned measures is approximately EUR 18 million fully from 2011
onwards.

For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications,
tel. +358 10 465 4335