M-real - Company Announcement

Preliminary information on M-real's 4Q 2009 results

M-real Corporation Stock Exchange Release on 18 January 2010 at 09.30.

Preliminary information on M-real's 4Q 2009 results

Based on preliminary information, M-real Corporation's, part of Metsäliitto
Group, sales in 4Q 2009 were approximately EUR 620 million and the operating
result, excluding non-recurring items approximately EUR 6 million.

In connection with the announcement of its 3Q 2009 results on 22 October 2009
M-real expected the 4Q 2009 operating result, excluding non-recurring items, to
be clearly better than the results of the two first quarters of the year.
Comparison to 3Q 2009 was at that time not disclosed due to insufficient
visibility. Mainly due to improved operating rates and own profit improvement
measures and despite the seasonally lower delivery volumes in December the
4Q 2009 operating result, excluding non-recurring items, was clearly better than
also in the 3Q 2009.

Annual sales in 2009 were approximately EUR 2,440 million and the operating
result, excluding non-recurring items approximately EUR -150 million.

M-real books in 4Q 2009 operating result in total EUR -59 million net
non-recurring items consisting of the following:

  * EUR 134 million non-recurring profit related to the Metsä-Botnia transaction
    of which EUR 18 million in Market Pulp and Energy and EUR 116 million in
    Other operations.
  * EUR 113 million impairment based on IAS 36 of which EUR 66 million in
    Speciality Papers and EUR 47 million in Office Papers. Of the total
    impairment EUR 33 million is goodwill.
  * EUR 7 million other net non-recurring costs, of which EUR 1 million in
    Consumer Packaging, EUR 1 million in Speciality Papers and EUR 5 million in
    Other operations.

 And related to the action plans announced in December 2009:

  * EUR 48 million write offs and cost provisions in Market Pulp and Energy
    related to the planned permanent closure of the Alizay pulp mill.
  * EUR 12 million cost provision in Other operations related to the terminated
    IT-contract.
  * EUR 8 million cost provision related to Husum profit improvement programme
    of which EUR 7 million in Office Papers and EUR 1 million in Market Pulp and
    Energy.
  * EUR 5 million cost provision in Speciality Papers related to their profit
    improvement programme.


The booked impairment charges and write offs will reduce M-real's annual
depreciations by approximately EUR 25 million from 2010 onwards.

M-real's equity was positively impacted by approximately EUR 58 million due to
the divestment of Metsä-Botnia's Uruguayn operations and Pohjolan Voima Oy (PVO)
shares as well as the change in Metsä-Botnia's ownership structure. The
difference between the non-recurring equity impact and the above mentioned EUR
134 million profit impact is mainly due to the exclusion of Metsä-Botnia's
Uruguayan company's minority share. Consolidation of Metsä-Botnia ownership was
changed to equity method based on IAS 28 on 8 December 2009. The impact of the
change in consolidation method on 4Q 2009 operating result is not material.

M-real will announce the full year 2009 results on 4 February 2010.

M-REAL CORPORATION

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


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