Board of Directors of M-real Corporation has resolved on a new executives plan

M-real Corporation Stock Exchange Release 16 December 2010 at 13.00 EET

The Board of Directors of M-real Corporation has resolved on a new share-based incentive plan directed to the M-real Corporation executives. The aim of the plan is to combine the objectives of the shareholders and the executives in order to increase the value of M-real, to commit the executives to perform the mutual strategy, and to offer them a competitive reward plan based on share ownership.

The plan includes three three-year earning periods, calendar years 2011—2013, 2012—2014 and 2013—2015. The Board of Directors will decide on the earnings criteria and on targets to be established for them at the beginning of each earning period. The potential reward from the plan for the earning period 2011—2013 will be based on the M-real Corporation's Equity Ratio and the development of Return on Capital Employed (ROCE) and Earnings before Interest and Taxes (EBIT). Each earning period is followed by subsequent two-year restriction period during which the participant is not entitled to transfer or dispose of the shares.

The potential reward from the earning period 2011—2013 will be paid partly in M-real Corporation series B shares and partly in cash in 2014. The proportion to be paid in cash will cover taxes and tax-related costs arising from the reward.

In the starting point the plan concerns 9 people including the members of the M-real Corporate Management Team. The rewards to be paid on the basis of the plan for the first earning period are in total maximum of approximately 1 000,000 M-real Corporation series B shares.

M-REAL CORPORATION

         Further information:
         Kari Jordan, Chairman of the Board of Directors, Tel. +358 10 465 5200