UPM-Kymmene - Company Announcement

EU Commission has approved UPM's Myllykoski transaction

(UPM, Helsinki, 13 July 2011 at 13.30 EET) - The European Commission has today
unconditionally approved UPM-Kymmene Oyj's acquisition of Myllykoski
Corporation and Rhein Papier GmbH ("Myllykoski"). Thus UPM has obtained all
required regulatory clearances for the transaction. The target for the final
closing of the transaction is in late July - early August. The companies
announced the transaction on 21 December 2010. 

”We are extremely pleased with the Commission's positive decision. The
regulatory process proceeded as planned and the authorities thoroughly
investigated the effects of the transaction on the markets. The approval of the
transaction means that the European paper industry has better prerequisites to
be competitive in the rapidly evolving world of media and against global
industry players,” says Jussi Pesonen, UPM's President & CEO. 

The transaction includes Myllykoski's seven publication paper mills in Germany,
Finland and the United States. The total annual paper production capacity is
2.8 million tonnes. The transaction also includes Myllykoski Corporation's 0.8
% ownership of the Finnish energy company Pohjolan Voima Oy. The approximate
enterprise value of all businesses acquired is EUR 900 million. 

Providing closing takes place before August 3, UPM will publish proforma
financial information on the transaction in connection with its interim review. 

For more information, please contact:
Mr Juha Mäkelä, General Counsel, UPM, tel. +358 204 15 0407

Material on the transaction published on 21 December is available on the
website at www.upm.com > Media > Press kit > Business > Paper. 

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
media@upm.com


Notes to the editor

UPM
UPM leads the integration of bio and forest industries into a new, sustainable
and innovation-driven future. Our products are made of renewable raw materials
and are recyclable. UPM consists of three Business Groups: Energy and pulp,
Paper, and Engineered materials. The Group employs around 22,000 people and it
has production plants in 16 countries. In 2010, UPM's sales amounted to EUR 8.9
billion. UPM's shares are listed on the Helsinki stock exchange. UPM - The
Biofore Company - www.upm.com 

Myllykoski
Myllykoski is a family-owned international paper group. It is one of the
largest publication paper producers in the world. The company produces uncoated
and coated publication papers, including newsprint. 

Myllykoski and Rhein Papier operate altogether seven paper mills in total with
an annual paper production capacity of 2.8 million tonnes. The mills are
located in Albbruck, Ettringen, Hûrth and Plattling (two mills) in Germany, in
Kouvola, Finland, and in Madison, the USA. Myllykoski employs approximately
2,500 people, of which 1,900 are based in Germany.