M-real - Company Announcement

M-real's result for Q4 under pressure from increased wood costs, adverse currency changes and problems in pulp production

M-real Corporation Stock Exchange Release 19.12.2007

Especially due to the rise in wood and pulp costs, M-real's operating
profit excluding non-recurring items will be slightly negative in the
fourth quarter 2007.

- "The fourth quarter is traditionally weaker than the previous
quarter for seasonal reasons. However, the changes in wood raw
material cost development and adverse currency rate changes are
weighing down results. In addition, M-real has been facing problems
mainly in pulp production, which are limited to the fourth quarter
only. Their impact on Q4 result is approximately EUR 20 million,"
says Mikko Helander, CEO to M-real.

- "Despite the challenges in the operational environment, there are
also positive signs ahead. The company's own cost savings actions,
paper and board price increases and the coming on-stream of
Metsä-Botnia's Uruguay pulp mill will all support our positive
development," Helander points out.

M-real will publish its financial results for 2007 on February 6,
2008.

M-REAL CORPORATION

Further information:
Seppo Parvi, CFO, tel. +358 10 469 4321
Anne-Mari Achrén, Communications, tel. +358 10 469 4541