M-real - Company Announcement

Fair value of M-real's PVO shares defined

M-real Corporation Stock Exchange Release June 25, 2008

M-real will fair value according to IAS 39 its ownership in Pohjolan
Voima (PVO) to EUR 439 million. The PVO shares have previously been
measured at cost of EUR 34 million. The fair valuation has a EUR 300
million impact on the fair value reserve of equity and EUR 105
million on deferred tax liabilities. Corresponding corrections have
been made to comparison periods according to IAS 8. The table below
illustrates the main key figures after the fair valuation.

M-real announced on May 27, 2008 the sale of 100 000 B2 shares in
Pohjolan Voima to Kymppivoima for EUR 80 million resulting in a gain
of EUR 74 million. This transaction has become effective on June 25,
2008 and M-real has received the cash. After the fair valuation of
the PVO investment and sale transaction, the total realized gain is
EUR 74 million.



KEY FIGURES                    2008  2007 2007  2007 2007  2007  2006
                                 Q1    Q4   Q3    Q2   Q1

Return on equity, %            -3,8 -47,7 -2,1 -10,2  9,0 -12,5 -15,4

Return on capital employed, %   2,7 -23,3  4,2  -1,1  9,2  -2,5  -4,5

Equity ratio at end of period,
%                              35,0  34,4 34,5  34,5 34,6  34,4  32,8

Gearing ratio at end of
period, %                       120   124  117   119  117   124   132

Net gearing ratio at end of
period, %                       100    99  107   107  104    99   113

Covenant equity ratio at end
of period, %                   40,6  39,7 39,1  39,3 39,2  39,7  37,6

Covenant gearing ratio at end
of period, %                     87    86   94    94   92    86   101

Shareholders equity per share,
eur                            5,59  5,58 6,09  6,11 6,23  5,58  6,26





M-REAL CORPORATION

Further information:
Seppo Parvi, CFO, tel. +358 10 465 4321