UPM-Kymmene - Company Announcement

Botnia's Uruguayan operations transferred to UPM; Approximately EUR 220 million capital gain on Botnia's Finnish operations

UPM-Kymmene Corporation   Stock Exchange Release  8 December 2009  at 15:00     

Botnia's Uruguayan operations transferred to UPM;                               
Approximately EUR 220 million capital gain on Botnia's Finnish operations       

UPM, Metsäliitto Cooperative, M-real Corporation, and Oy Metsä-Botnia Ab        
(Botnia) have today completed the transaction according to which Metsäliitto's  
and Botnia's share of the Fray Bentos pulp mill and the eucalyptus plantation   
forestry company Forestal Oriental in Uruguay are transferred to UPM. In the    
transaction, UPM sold approximately 30% in Oy Metsä-Botnia Ab to Metsäliitto and
acquired 1.2% of the energy company Pohjolan Voima Oy from Botnia. The companies
signed an agreement concerning the transaction on 22 October 2009.              

UPM preliminarily estimates the financial impacts of the transaction to be as   
follows: UPM will record a EUR 220 million capital gain on the sale of Botnia's 
shares in the fourth quarter of 2009. In addition, the changes in the fair      
values and the previous indirect holding will increase UPM's equity by          
approximately EUR 500 million. In UPM's balance sheet, assets are estimated to  
increase by approximately EUR 1,300 million and interest-bearing net debt by    
approximately EUR 350 million. The transaction is expected to have a positive   
impact on UPM's results in 2010 and a minor impact on the gearing ratio.        

The enterprise value of the Fray Bentos pulp mill and Forestal Oriental totals  
approximately EUR 1.6 billion and the enterprise value of Botnia without the    
Uruguayan operations and shareholding in Pohjolan Voima Oy is approximately EUR 
1.9 billion.                                                                    

Following the transaction, UPM has a 91% ownership in the Fray Bentos pulp mill,
100% in Forestal Oriental and approximately 17% in Botnia.                      

For more information, please contact:                                           
Mr Tapio Korpeinen, President, Energy and pulp Business Group, UPM, tel. +358 40
730 0090                                                                        
Mr Jyrki Salo, Executive Vice President and CFO, UPM, tel. +358 204 15 0011     

UPM leads the integration of bio and forest industries into a new, sustainable  
and innovation-driven future. Our products are made of renewable raw materials  
and are recyclable. UPM consists of three Business Groups: Energy and pulp,     
Paper, and Engineered materials. The Group employs around 24,000 people and it  
has production facilities in 15 countries. In 2008, UPM's sales amounted to EUR 
9.5 billion. UPM's shares are listed on the Helsinki stock exchange.            
UPM - The Biofore Company - www.upm-kymmene.com                                 

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

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

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