M-real - Company Announcement

M-real's divestment of Graphic Papers closed at year end 2008

M-real Corporation Stock Exchange Release 31 December 2008

In late September 2008, M-real Corporation, a part of Metsäliitto
Group, announced the sale of its Graphic Papers business to the South
African Sappi Limited for EUR 750 million. The economic value
consists of approximately EUR 480 million in cash and assumed debt,
EUR 220 million vendor loan note from Sappi to M-real and the rest in
Sappi shares.

The transaction includes the Kangas, Kirkniemi, Biberist and
Stockstadt mills with a total paper production capacity of about 1.9
million tons per annum as well as several long-term commercial
agreements.

The transaction has been closed on 31 December 2008. The transaction
consideration is subject to minor changes based on final operating
net working capital and net debt at year end.

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