M-real - Company Announcement

M-real is planning to partially divest Reflex paper mill

M-real Corporation Stock Exchange Release on 16 June 2010 at 13.00

M-real is planning to partially divest Reflex paper mill
M-real Corporation, part of Metsäliitto Group, has today signed a Memorandum of
Understanding (MOU) regarding a partial divestment of the Reflex mill to Metsä
Tissue Corporation, also a part of Metsäliitto Group, for approximately EUR 10
million. The planned divestment includes the paper machine 5 and related real
estate as well as certain infrastructure assets. Metsä Tissue is planning to
convert the paper machine to grades that are not competing with M-real's
grades. 

Based on preliminary plans, Metsä Tissue would employ about 50 employees,
reducing the corresponding amount of redundancies agreed earlier at Reflex
site. 

If the transaction is consummated as planned M-real books a positive EUR 15
million non-recurring item in Speciality Papers business area's operating
result related to the transaction proceeds and the partial reversal of earlier
announced personnel cost provisions. Cash impact would be approximately EUR 10
million positive taking into account certain investments needed in the Premium
Papers production at the site. 

The transaction is expected to be closed during 4Q 2010. M-real will continue
to further develop the paper park concept at Reflex site. 

M-real announced on 21 May 2010 that Reflex mill will be developed based on a
paper park concept and that the target is to find industrial partnerships and
thus create new jobs at the mill site. At the same time, it was announced that
negotiations to reduce M-real Zanders mills' headcount by 220 were finalized
and Speciality Papers business area's 2Q 2010 operating result would include an
approximately EUR 16 million non-recurring cost provisions. 

For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10
465 4335