M-real - Company Announcement

M-real has signed an agreement to partially divest the Reflex paper mill

M-real Corporation Stock Exchange Release on 27 October 2010 at 9

M-real has signed an agreement to partially divest the Reflex paper mill

M-real Corporation announced 16.6.2010 that it has signed a Memorandum of
Understanding (MoU) regarding a partial divestment of the Reflex mill to Metsä
Tissue Corporation for approximately EUR 10 million. M-real and Metsä Tissue
are both part of Metsäliitto Group. 

M-real has today signed an agreement regarding the partial divestment. Closing
of the transaction is to occur in the beginning of November. The transaction
includes the paper machine 5 and related real estate as well as certain
infrastructure assets. Metsä Tissue will start producing baking and cooking
paper products in the paper machine. As part of the transaction, 74 employees
will transfer to the service of Metsä Tissue. 

M-real will book 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 and
earlier booked impairment, of which EUR 8 million will be booked in the 3Q 2010
and the rest in the 4Q 2010. Cash impact is in total approximately EUR 10
million positive taking into account certain investments needed in the Premium
Papers production at the site. 

M-real will continue to further develop the Paper park concept at the Reflex
site. 

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