M-real - Company Announcement

M-real re-engineers its R&D

M-real Corporation Stock Exchange Bulletin 15.3.2007

M-real, Metsäliitto Group's subsidiary, re-engineers its research and
development activities. The responsibility for product development
will be transferred to the business areas. The Technology Centres at
Bergisch Gladbach in Germany and Örnsköldsvik in Sweden are planned
to be closed down. Part of their operations will be centralised in
Finland at the Kirkniemi Technology Centre. In future, M-real's
business areas will utilise the Kirkniemi Technology Centre's shared
resources and, if required, reinforce their personnel."By transferring the production and development operations into the
hands of the business areas, we can ensure that the steering of our
R&D is more customer-focused. Centralising the shared resources in
Kirkniemi will enhance the efficiency of our operations and M'real's
opportunities to provide innovative products and solutions for its
customers", says Mika Joukio, Executive Vice President, Consumer
Packaging. He is also in charge of M-real's R&D in the Management
Team.

The re-engineering of M-real's R&D will result in significant cost
savings. Local negotiations with the personnel affected by the
restructuring in Sweden and Germany will begin immediately. The
estimated reduction in the number of employees is approximately 30
persons.

Further information
Mika Joukio, EVP, Consumer Packaging, R&D, Tel. +358 10 469 4900
Anne-Mari Achrén, Communications, Tel. +358 10 469 4541