2009-02-05 10:45:09 CET

2009-02-05 10:45:42 CET


REGULATED INFORMATION

English
M-real - Company Announcement

M-real launches new profit improvement programme



M-real Corporation Stock Exchange Release 5 February 2009

M-real, part of Metsäliitto Group, launches a new profit improvement
programme with an annual target of EUR 80 million. The full annual
effect will be visible from 2011. Half of the profit improvements
will come from fixed and variable cost savings in the business areas
and the other half by streamlining the support functions to reflect
the new corporate structure resulting from the divestment of Graphics
Papers business at the end of 2008.

Most profit improvement measures taken by the business areas are
planned to be completed in 2009 with an expected profit impact of EUR
20-25 million. The related non-recurring costs booked during 2009 are
expected to be about EUR 18 million."We met last year's profit improvement targets and we were able to
cover most of the record-high cost inflation. Based on current
estimates, the profit impact of this new programme, combined with the
effects of the previous programmes, will clearly exceed the cost
inflation in 2009," says Mikko Helander, CEO,  M-real.

M-real will also implement a separate programme to boost the 2009
cash flow by about EUR 60 million and will include reducing operating
net working capital and cutting investments. "2009 is an exceptional
year for the industry and requires radical actions. The emphases must
be on improving cash flow," continues Helander.

M-REAL CORPORATION

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