M-real - Company Announcement

M-real raises the annual profit improvement programme target to EUR 150 million

M-real Corporation Stock Exchange Release 21.5.2008

M-real started an internal profit improvement and complexity
reduction programme in November 2007 targeting EUR 100 million annual
profit improvements. After continued in-depth investigations, M-real
has identified additional profit improvement measures mainly in the
business concept simplification in all business areas. Consequently,
the original EUR 100 million annual profit improvement target is
raised to EUR 150 million. Full annual profitability impact of these
measures will be seen from 2010 onwards.

M-real continues the planning for yet additional profit improvement
measures that are expected to be published later this year.

M-REAL CORPORATION

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