UPM-Kymmene - Company Announcement

UPM sells industrial wrapping producer Walki Wisa to CapMan and focuses its converting operations on self-adhesive labelstock

UPM has signed an agreement on the sale of the Walki Wisa Group, a business unit
of UPM's Converting Division, to funds managed by the Finnish private equity    
investment company CapMan. The parties have agreed not to disclose the sale     
price. UPM estimates the sale of the business will result in a capital gain of  
around EUR 25 million. The final figure will be determined based on the accounts
to be prepared as at the closing of the deal. The transaction is expected to be 
concluded in the second quarter of 2007. The deal is subject to approval by     
competition authorities.                                                        

Walki Wisa is Europe's leading producer of wrappings and composite materials for
industrial applications. Its products are used in, among other sectors, paper,  
metal and packaging industries. The production plants are located in Finland,   
Sweden, Germany, Great Britain and China. Walki Wisa's sales amounted to EUR 287
million in 2006. Walki Wisa employs about 950 people, some 600 of them in       
Finland.                                                                        

The sale of Walki Wisa complies with UPM's strategy to divest non-core
businesses. With this sale, UPM will focus on developing its converting         
operations on the rapidly growing self-adhesive labelstock and RFID business, in
which UPM has invested strongly over recent years.                              

CapMan is one of the leading private equity investors in the Nordic countries.  
It manages Nordic funds worth approx. EUR 2.9 billion in total capital. The     
CapMan team comprises 100 people in Helsinki, Stockholm, Copenhagen and Oslo.   
The B shares of CapMan Plc are listed on the Main List of the Helsinki Stock    
Exchange.                                                                       

For further information please contact:                                         
Mr Matti Lindahl, President, Special Coatings Business, UPM, tel. +49 171 6127  
688                                                                             

UPM-Kymmene Corporation                                                         


Pirkko Harrela                                                                  
Executive Vice President, Corporate Communications                              

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