M-real - Company Announcement

M-real's fourth quarter and full year 2008 operating result excluding non-recurring items clearly weaker than previously expected

M-real Corporation Stock Exchange Release 17 December 2008

In connection with the third quarter 2008 result announcement, M-real
expected the fourth quarter operating result, excluding non-recurring
items, to weaken seasonally. The demand for M-real's main products in
Europe was expected to remain relatively stable for the rest of the
year.

M-real has earlier stated that the operating result for the full year
2008, excluding non-recurring items, is expected to be weaker than in
2007.

In the fourth quarter, the demand for M-real's main products has
declined clearly more than the normally expected seasonality due to
the weakening world economy. This has resulted in market-related
curtailments at M-real's mills. The decline in market pulp prices has
also weakened M-real's profitability more than expected.

The operating result, excluding non-recurring items, of the fourth
quarter will be clearly weaker than in the third quarter. Thus, the
full year 2008 operating result, excluding no-recurring items, will
also be clearly weaker than in 2007.

M-REAL CORPORATION

Further information:
Seppo Parvi, CFO, tel. +358 10 465 4321
Juha Laine, VP, IR and Communications, tel. +358 10 465 4335