UPM-Kymmene - Company Announcement

UPM has agreed to settle class-action lawsuits raised by direct purchasers of magazine paper and labelstock in the United States

UPM has been named as a defendant in multiple class-action lawsuits raised      
against magazine paper and labelstock manufacturers in the United States. The   
company has now agreed to settle the class-action lawsuits raised by direct     
purchasers of magazine paper and labelstock.                                    

According to the agreement UPM will pay compensation to magazine paper customers
in value of 9 million and to labelstock customers of 8.25 million US dollars.   
The charge, a total of approx. EUR 12 million, will be recorded for the last    
quarter of 2007.                                                                

Class-action lawsuits filed by indirect purchasers of magazine paper and        
labelstock continue to be pending.                                              

Class-action lawsuits were raised after the US Department of Justice opened     
criminal investigations into competitive practices in 2003. The US authorities  
have since concluded the investigations.                                        

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

UPM-Kymmene Corporation                                                         
Pirkko Harrela                                                                  
Executive Vice President, Corporate Communications                              

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