UPM-Kymmene - Company Announcement

UPM initiates share buyback

UPM's Board of Directors has today decided to exercise the authorisation of the 
Annual General Meeting of shareholders on 27 March 2007 to buy back the         
Company's own shares. According to the decision of the Board of Directors, the  
Company may acquire not more than 16,400,000 of own shares.                     

The shares will be acquired in public trading on the Helsinki Stock Exchange at 
the prevailing market price at the time of purchase using the Company's         
non-restricted equity. The purchase price for the shares will be paid according 
to the applicable rules of the Helsinki Stock Exchange.                         

In accordance with the authorisation, the shares will be acquired to be used for
financing of corporate acquisitions and investments or other business operations
and as part of the company's incentive programs, or to be held by the company,  
relinquished or invalidated.                                                    

The share buyback will be started on 29 August 2007 at the earliest and         
completed before 27 September 2008.                                             

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

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

DISTRIBUTION                                                                    
Helsinki Exchanges                                                              
New York Stock Exchange                                                         
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