M-real - Company Announcement

M-real Reflex mill divestment to Arjowiggins cancelled

M-real and Arjowiggins have decided not to pursue the sale of Reflex
mill. The parties entered into the sale and purchase agreement on 12
October 2007 and the transaction was conditionally approved by the
European Commission on 4 June 2008. The condition was that
Arjowiggins should divest Reflex mill's carbonless and digital
imaging businesses to a third party. After thorough analysis, the
parties conclude that the rationale to complete the transaction under
the condition was considerably weakened.

Reflex mill will continue to be developed as part of M-real.

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