UPM-Kymmene - Company Announcement

UPM issues five million new shares in directed share issue as part of financing the Myllykoski transaction

Helsinki, 2011-08-01 22:17 CEST (GLOBE NEWSWIRE) -- UPM issues five million new
shares to the direct and indirect owners of Myllykoski Oyj and Rhein Papier
GmbH at a subscription price of EUR 10.84 per share. The subscription price for
the new UPM shares was paid by contribution of subordinated loan notes of Rhein
Papier GmbH to UPM. As a part of the contractual arrangements relating to the
Myllykoski transaction, a total of 211,481 UPM shares out of the new shares of
UPM to be issued will be returned to UPM without consideration upon their
issue. 

UPM announced the share issue on 21 December 2010 as a part of the Myllykoski
transaction agreed on the same day. The share issue decision is based on the
authorisation granted by the Annual General Meeting of shareholders of UPM to
the Board of Directors of UPM on 22 March 2010. The transaction has been
concluded today and the contractual terms for the share issue have been
fulfilled. 

The subscription price for the new shares will be recorded into the invested
unrestricted equity reserve of UPM. The new shares are expected to be
registered with the Finnish Trade Register on 3 August 2011. Public trading in
the new shares together with the existing shares is expected to commence on
NASDAQ OMX Helsinki Ltd on 4 August 2011. The new shares carry a right to
dividend and other shareholder rights as from their registration with the
Finnish Trade Register. 

Following the share issue, the number of issued shares of UPM will be
524,970,388. Each share entitles its holder to one vote at the general meeting
of shareholders of UPM. Following the share issue, UPM holds 211,481 treasury
shares. 

For more information, please contact:
Tapio Korpeinen, CFO, UPM, tel. +358 2041 50004

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