M-REAL?S THIRD-QUARTER RESULT BEFORE TAXES MOVES INTO THE BLACK

M-real Corporation Stock Exchange Bulletin 28.10.2005 at 1.00 p.m.
1(24)

M-REAL’S THIRD-QUARTER RESULT BEFORE TAXES MOVES INTO THE BLACK

M-real’s consolidated result before taxes, excluding non-recurring
items, improved in the third quarter to EUR 1 million from a loss of
EUR 124 million in the previous quarter. The operating result net of
non-recurring items improved to EUR 20 million, from a loss of EUR 57
million. Profitability was improved mainly by the rise in the price
of coated magazine paper, the increase in the volume of coated fine
paper delivered and the ending of the labour dispute that had
disrupted the Finnish paper industry.

All in all, the labour dispute in Finland is estimated to have cut
EUR 15-20 million off of the third-quarter operating result. The
figure takes into account the lost delivery volumes, the positive
effect on earnings of the return of product stocks to a normal level,
the effects on fixed costs as well as Metsä-Botnia’s lower operating
result. In the second quarter, the total effect was a decrease of
about EUR 70 million in the operating result.

Key figures for the third quarter of 2005, excluding non-recurring
items:
- Operating result: EUR 20 million (a loss of 57 million in the
previous quarter)
- Result before taxes: EUR 1 million (a loss of 124 million)
- Earnings per share: EUR 0.01 (0.32 negative)
- Return on capital employed: 2.3 per cent (0.3 negative)

Key figures for the third quarter of 2005:
- Turnover: EUR 1,269 million (1,259 million)
- Operating result: EUR 20 million (a loss of 72)
- Result before taxes: EUR 1 million (a loss of 143 million)
- Result for the report period: EUR 2 million (a loss of 121).
- Earnings per share: EUR 0.01 (0.37 negative)
- Return on capital employed: 2.3 per cent (5.7 negative)
- Equity ratio: 37.4 per cent (38.4)
- Gearing ratio: 87 per cent (85)

- Volume of paperboard delivered: 226,000 (231,000); volume of paper
delivered: 991,000 (999,000)

The third-quarter result before taxes was improved by a valuation
gain on interest rate derivatives of EUR 11 million owing to the rise
in the level of interest rates. In the previous quarter, a valuation
loss of EUR 17 million was booked on the corresponding instruments.
Operating profit in the second quarter was also burdened by a one-off
expense provision of EUR 15 million to cover the efficiency-boosting
programme in Sweden.

The cumulative result before taxes for January-September was a loss
of EUR 65 million. During the corresponding period last year a loss
of EUR 69 million was posted. Excluding non-recurring items the
result weakened by EUR 62 million to a loss of EUR 131 million,
particularly due to the losses caused by the labour disputes, the
weakening in the United States dollar and the British pound, the fall
in the price of uncoated fine paper, the rise in oil-based raw
material prices as well as the higher energy costs.

Commenting on the progress of M-real’s cost-savings programme and the
market situation for its main products, President & CEO Hannu Anttila
said:

“M-real’s 230 million euro savings and efficiency-boosting programme
is progressing in line with targets, and we are actively looking for
new areas where savings can be realized.”

“After the labour dispute in the Finnish paper industry came to an
end, demand for most grades of paper and paperboard has been good and
the market balance more favourable. The revival in our volumes of
packaging board delivered has nevertheless been slower than forecast,
but we believe the situation will improve during the latter part of
the year. Within coated magazine paper, we have a strong order book
at present and price increases have been put through. Sales volumes
of coated fine paper have developed favourably and prices have been
rather steady. Within office papers, the company has succeeded in
raising the prices of the lowest quality grades.”

“The efficiency improvement of the Map paper merchanting business has
proceeded according to plans. Integrating the functions of the Modo
Merchants chain into James McNaughton – a process that was started
towards the end of last year – was seen to completion.”

In the last quarter of the year, demand for the company’s main
products is forecast to remain good. Deliveries are estimated to
increase in the Consumer Packaging and Publishing business areas,
where the labour dispute lowered the volume of deliveries in the
third quarter. Average prices of coated magazine paper and uncoated
fine paper are estimated to rise slightly. No significant change is
expected in the price of coated fine paper, and the price of folding
boxboard is expected to remain stable. The fourth quarter result
before taxes, excluding non-recurring items, is not estimated to
differ significantly from the previous quarter. The full-year result
before taxes will be in the red.

M-REAL CORPORATION

Corporate Communications

For further information please contact Hannu Anttila, President and
CEO, tel. +358 10 469 4343 or Juhani Pöhö, Executive Vice President
and CFO, tel. +358 10 469 5283.


M-REAL CORPORATION

INTERIM REPORT  1 JANUARY - 30 SEPTEMBER 2005

ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

M-real made the transition from Finnish Accounting Standards (FAS) to
International Financial Reporting Standards (IFRS) from the beginning
of 2005.

The transition date is 1 January 2004, and an opening balance sheet
in accordance with IFRS accounting principles was prepared at that
date. Certain exemptions permitted to first-time adopters of IFRS
have been applied in preparing the opening balance sheet. More
detailed information and specifications of the effects of the
transition on the company’s balance sheet and income statement as
well as the changes in accounting principles have been given in the
stock exchange release of 19 April 2005.

The first financial statements according to International Financial
Reporting Standards will be published for the period 1 January - 31
December 2005. This interim report has been prepared according to the
accounting and valuation principles of IFRS.

JULY-SEPTEMBER EARNINGS COMPARED WITH THE PREVIOUS QUARTER

In the third quarter M-real’s consolidated turnover was EUR 1,269
million (Apr.-June 2005: EUR 1,259 million). Comparable turnover was
up 0.9 per cent.

The Group reported an operating profit of EUR 20 million (a loss of
EUR 72 million). The operating result does not include non-recurring
items. A one-off expense provision of EUR 15 million for the
efficiency-boosting programme at the units in Sweden was booked to
the operating result in the previous quarter.

The operating result was improved mainly by the rise in the price of
coated magazine paper, the growth in the volume of coated fine paper
delivered as well as the conclusion of the labour dispute that had
disrupted the Finnish paper industry.

The labour dispute in Finland came to an end on 1 July 2005. The
mills that were affected by the dispute got back to full production
in about a week. In the wake of the dispute, product stocks in the
supply chain were exceptionally low. The overall effect of the
disputes on the third-quarter operating result was an estimated loss
of EUR 15-20 million. The figure takes into account lost delivery
volumes, the positive effect on earnings of the return of product
stocks to a normal level, the effects on fixed costs as well as Metsä-
Botnia’s lower operating result. In the second quarter, the total
effect was a decrease of about EUR 70 million in the operating
result.

Of the business areas, Consumer Packaging, Publishing as well as
Commercial Printing posted improved operating results, whereas the
operating results of Office Papers and Map Merchants weakened.

Deliveries of paperboard to customers totalled 226,000 tonnes
(231,000). Production was curtailed by 3,000 tonnes in line with
demand (4,000). The lost production due to the labour dispute in
Finland is not included in the amount of curtailed production.

Paper deliveries from the mills totalled 991,000 tonnes (999,000).
Production curtailments amounted to 43,000 tonnes (54,000). The lost
production due to the labour dispute is not included in the amount of
curtailed production.

The share of the results of associated companies amounted to EUR 0
million (a loss of 4 million).

The aggregate amount of financial income and expenses was EUR 19
million negative (67 million negative). Foreign exchange differences
on accounts receivable, accounts payable, financial income and
expense and the valuation of currency hedging instruments amounted to
EUR 0 million (15 million negative). Net interest and other financial
expenses were EUR 19 million negative (52 million negative).

Other financial expenses include EUR 11 million of valuation gains on
interest rate derivatives. A valuation loss of EUR 17 million was
booked on the corresponding instruments in the previous quarter. In
addition, EUR 4 million of other write downs are included in other
financial expenses in the previous quarter.

Currency and interest rate hedges are used to hedge future cash flows
against fluctuations in foreign exchange and interest rates. The
valuation gains and losses that were booked are attributable
primarily to changes in the exchange rate of the United States dollar
and the general level of interest rates, and they do not have an
impact on cash flows. From the third quarter on, M-real will apply
partial hedge accounting according to IAS 39 in hedging its dollar
cash flow position. The adoption of hedge accounting will improve the
third-quarter result compared with the previous accounting policy by
EUR 1 million.

At the end of September, the exchange rate of the United States
dollar against the euro was 0.4 per cent higher and the rate of the
British pound against the euro 1.2 per cent higher than at the end of
June. On average, the dollar appreciated by 3.2 per cent and sterling
weakened by 0.7 per cent compared with the previous quarter.

The result before taxes was a profit of EUR 1 million (a loss of 143
million). Excluding non-recurring items, the result in the previous
quarter was a loss of EUR 124 million.

Net profit for the report period was EUR 2 million (a loss of 121
million). Income taxes, including the change in the deferred tax
liability, added EUR 2 million to earnings (21 million positive).

Earnings per share were EUR 0.01 (0.37 negative) and net of non-
recurring items, 0.01 (0.32 negative).

The return on equity was 0.4 per cent (20.2 negative); excluding non-
recurring items, 0.4 per cent (17.6 negative). The return on capital
employed was 2.3 per cent (5.7 negative); excluding non-recurring
items, 2.3 per cent (0.3 negative).

EARNINGS IN JANUARY-SEPTEMBER COMPARED WITH THE SAME PERIOD OF 2004

Turnover in January-September was EUR 3,872 million (Jan.-Sep. 2004:
4,158 million). Comparable turnover fell by 5.9 per cent.

Operating profit was EUR 63 million (45). Operating profit includes
70 million of net non-recurring income. The main non-recurring items
are a one-off expense provision, booked in the second quarter, of EUR
15 million for the efficiency boosting programme of the units in
Sweden and the EUR 81 million capital gain on the disposal of an 8
per cent stake in Metsä-Botnia, which was booked in the first
quarter. The result in January-September of last year did not include
non-recurring items.

The operating result, excluding non-recurring items, was a loss of
EUR 7 million (profit of 45). Profitability was weakened above all by
the lost delivery volumes for paperboard and coated magazine paper
owing to the labour dispute in Finland as well as by the lower
operating result reported by Metsä-Botnia. The overall effect of the
labour dispute on the operating result in January-September was about
EUR 85-90 million negative. In addition, the weakening in the US
dollar and sterling, the fall in the price of uncoated fine paper,
the rise in the costs of oil-based raw materials as well as higher
energy costs cut into profitability.

The second and third-quarter operating result includes a 39 per cent
share of Metsä-Botnia’s operating result compared with a 47 per cent
share in the first quarter. The previous year’s result included a 47
per cent share of Metsä-Botnia’s operating result.

Of the business areas, Map Merchants’ operating result improved,
whereas Commercial Printing and Office Papers reported weaker
operating results. The favourable trend in the Consumer Packaging and
Publishing business areas was overshadowed by the losses due to the
labour dispute.

Deliveries of paperboard to customers totalled 738,000 tonnes
(1,034,000). The Savon Sellu pulp mill is included in the comparison
period’s delivery volume. The delivery volume of Kemiart Liners is
accounted for to the full extent in both periods. On a like-for-like
basis, the delivery volume in the comparison period was 871,000
tonnes. Production was curtailed by 24,000 tonnes in line with demand
(59,000). The lost production due to the labour dispute in Finland is
not included in the amount of curtailed production.

The total volume of paper deliveries was 3,009,000 tonnes
(2,958,000). Production curtailments amounted to 161,000 tonnes
(289,000). The lost production due to the labour disputes is not
included in the amount of curtailed production.

The share of the results of associated companies amounted to a loss
of EUR 3 million (profit of 1).

The aggregate amount of financial income and expenses was EUR 125
million negative (115 million negative). Foreign exchange differences
on accounts receivable, accounts payable, financial income and
expense and the valuation of currency hedging instruments were EUR 26
million negative (17 million negative). Net interest and other
financial expenses were EUR 99 million negative (98 million
negative).

Other financial expenses include a valuation loss of EUR 6 million on
interest rate hedges as well as other write downs of EUR 4 million
that were booked in the second quarter.

Currency and interest rate hedges are used to hedge future cash flows
against fluctuations in foreign exchange and interest rates. The
valuation gains and losses that were booked are attributable
primarily to changes in the exchange rate of the United States dollar
and the general level of interest rates, and they do not have an
impact on cash flows. From the third quarter on, M-real will apply
partial hedge accounting according to IAS 39 in hedging its dollar
cash flow position. The adoption of hedge accounting will improve the
third-quarter result compared with the previous accounting policy by
EUR 1 million.

At the end of September, the exchange rate of the United States
dollar against the euro was 3.0 per cent and the rate of the British
pound against the euro 0.7 per cent higher than at the end of
September 2004. On average, the dollar weakened by 3.1 per cent and
sterling by 1.8 per cent compared with January-September of last
year.

The result before taxes was a loss of EUR 65 million (a loss of 69
million). The result before taxes net of non-recurring items was a
loss of EUR 131 million (a loss of 69).

The Group posted a net loss for the report period of EUR 43 million
(net profit of 91 million). The result in the comparison period
included a capital gain of EUR 176 million on the disposal of Metsä-
Tissue as well as an EUR 5 million charge to earnings in connection
with the divestment of Forestia in January 2005. Income taxes,
including the change in the deferred tax liability, added EUR 23
million to earnings (9 million negative).

Earnings per share were EUR 0.13 negative (0.43). Excluding non-
recurring items, earnings per share were 0.34 negative (0.43).

The return on equity was 2.3 per cent negative (5.2 negative);
excluding non-recurring items, 6.2 per cent negative (5.2 negative).
The return on capital employed was 2.3 per cent (1.7) and net of non-
recurring items, 0.2 per cent (1.7).

PERSONNEL

M-real had an average payroll in January-September of 15,695
employees (Jan.-Sept. 2004: 16,673), of whom 4,750 employees worked
in Finland (5,405). The net decrease in average personnel was 978
employees, of which the effect of acquisitions and divestments was a
decrease of 399 employees.

The number of personnel at the end of September was 15,412 employees
(16,224 employees at 30 September 2004), of whom 4,543 employees
worked in Finland (5,044). The net decrease in personnel was 812
employees. The effect of acquisitions and divestments was a decrease
of 409 employees.

As from 31 March, the Group’s personnel includes 39 per cent of Metsä-
Botnia’s employees. Figures prior to this include 47 per cent of
Metsä-Botnia’s employees.

CAPITAL EXPENDITURES

Capital expenditures on fixed assets totalled EUR 308 million in
January-September (Jan.-Sept. 2004: 145), or 8.0 per cent of turnover
(3.5).

The new mill that manufactures bleached chemithermal mechanical pulp
came on stream at the end of August in Kaskinen and deliveries began
in September. The mill has a production capacity of 300,000 tonnes a
year, all of which will be used as the raw material for the Group’s
own paper and board mills.

An investment of about EUR 60 million at the Simpele mill was
announced in March. The mill’s board machine will be modernized, and
the slitter-winder and the reel and sheet packaging equipment will be
rebuilt. The sheeting capacity will also be increased. When the
capital programme is completed, paperboard production capacity will
rise to 215,000 tonnes a year. The capital project will be completed
stage by stage by spring 2006.

ACQUISITIONS, DIVESTMENTS AND RESTRUCTURING

The sale of forestland to Forestia Holding Oy was seen to completion
in January. The total price of the forest assets was EUR 172 million,
of which M-real's share was EUR 163 million. The transaction did not
have a material impact on earnings of the period.

In March, Metsä-Botnia, the resource company that is jointly owned by
M-real, UPM-Kymmene and Metsäliitto, announced its decision to invest
in a new pulp mill in Uruguay. The total cost of the investment will
be about 1.1 billion dollars. The mill will produce eucalyptus pulp
and it is estimated to start up during the third quarter of 2007.
Concurrently, M-real announced it was selling an 8% stake in Metsä-
Botnia to Metsäliitto Osuuskunta for EUR 164 million. A capital gain
of EUR 81 million was booked on the deal. Following the transaction,
the shareholdings in Metsä-Botnia are M-real 39%, Metsäliitto 14% and
UMP-Kymmene 47%. The transaction was completed on 31 March.

In June a cooperation agreement was signed with YIT Construction Ltd
on developing the Lielahti district of Tampere. The aim is to develop
the area into a pleasant residential suburb in cooperation with the
City of Tampere.

The negotiations with employees at the units in Sweden concerning the
integration of the Wifsta fine paper mill into the Husum pulp and
paper mill were seen to completion in June. Staff cuts by the end of
2006 will amount to about 200 employees and the objective of the
reorganization is to realize annual cost savings of at least 22
million euros. A one-off expense provision charge of EUR 15 million
to the second quarter operating result has been taken for the staff
cuts.

FINANCING

Interest-bearing net liabilities amounted to EUR 2,040 million at the
end of September (Sept. 2004: 2,294).

The equity ratio at the end of the period was 37.4 per cent (Sept.
2004: 31.4) and the gearing ratio was 87 per cent (112).

Liquidity is good. Liquidity at the end of September was EUR 1,504
million, of which EUR 1,384 million consisted of binding long-term
credit commitments and EUR 120 million represented liquid funds and
investments. In addition, to meet its short-term financing needs, the
Group had at its disposal non-binding domestic and foreign commercial
paper programmes and credit facilities amounting to about EUR 600
million.

At the end the report period an average of 5 months of net foreign
currency exposure was hedged. The degree of hedging during the report
period has varied between 4 and 5 months. At the end of the report
period, about 96 per cent of the shareholders’ equity not in euros
was hedged. At the end of September the Group’s liabilities were tied
to fixed interest rates for a period of 22 months. During the report
period the interest rate maturity has varied from 18 to 27 months.

In March, Standard & Poors Ratings Services lowered the rating on M-
real’s long-term loans from BB+ to BB and changed the outlook for the
rating from negative to stable.

On 19 October, Moody’s Investors Services changed the outlook for M-
real’s Ba2 credit rating from stable to negative.

SHARES

The highest price of M-real’s Series B share on the Helsinki Stock
Exchange during the January-September period was EUR 4.93, the low
EUR 4.10 and the average price EUR 4.46. The price of the Series B
share was EUR 4.51 at the end of the report period on 30 September
2005. In 2004 the average price was EUR 5.59. The share price at the
end of 2004 was EUR 4.70.

The trade volume of the Series B share was EUR 829 million, or 64 per
cent of the shares outstanding. The market value of the Series A and
B shares at 30 September 2005 totalled EUR 1,480 million.

At 30 September 2005 Metsäliitto Osuuskunta owned 38.6 per cent of M-
real Corporation’s shares and the voting rights conferred by these
shares was 60.5 per cent. International investors owned 34.2 per cent
of the shares.

On 14 March the Annual General Meeting approved the Board of
Directors’ proposal for amending the Articles of Association. An
Article 16 concerning the conversion of shares has been added to the
Articles of Association, its principal content being that an M-real
Series A share can be converted into a Series B share upon the
written demand of a shareholder or authorized agent for nominee-
registered shares. No cash consideration is payable for carrying out
a conversion. The amendment to the Articles of Association was
entered in the Trade Register on 18 April. On 10 October 2005, 1,000
M-real Series A shares were converted into Series B shares, and
trading in the new shares began on 11 October 2005. The breakdown of
the shares following the conversion is 36,339,550 Series A shares and
291,826,062 Series B shares.

In March, application was made to the Helsinki Stock Exchange for
permission to reduce the company’s round lot for traded shares from
500 to 200 shares. The change entered into effect on 14 March.

The Board of Directors does not have current authorizations to carry
out share issues or issues of convertible bonds or bonds with
warrants.

NEAR-TERM OUTLOOK

Economic growth in western Europe has remained slow, and growth over
the whole year is generally expected to come in under 2 per cent. In
western Europe, the growth in the amount of money spent on printed
advertising is estimated to be on a par with overall economic growth.
In eastern Europe, North America and Asia, however, economic growth
in 2005 is estimated to be clearly faster. Because of the high market
price of crude oil, prices of the oil-based raw materials as well as
transport costs will remain high. In addition, the rise in the price
of energy, especially natural gas and electricity, will raise
industry’s costs.

Because of the labour disputes in Finland, M-real’s stocks of
paperboard and paper at the beginning of the third quarter were low.
During the quarter the demand for M-real’s main products was good,
and operating rates were high. Demand also increased owing to
seasonal factors. Delivery volumes nonetheless were lower than usual
for the business areas that were still affected by the labour
dispute, the effects of which continued on into the first days of the
third quarter. Price increases for magazine paper and uncoated fine
paper were put through during the quarter. Within coated fine paper,
prices remained unchanged.

In the last quarter of the year, demand for the company’s main
products is forecast to remain good. Deliveries are estimated to
increase in the Consumer Packaging and Publishing business areas,
where the labour dispute lowered the volume of deliveries in the
third quarter. Average prices of coated magazine paper and uncoated
fine paper are estimated to rise slightly. No significant change is
expected in the price of coated fine paper, and the price of folding
boxboard is expected to remain stable. The fourth quarter result
before taxes, excluding non-recurring items, is not estimated to
differ significantly from the previous quarter. The full-year result
before taxes will be in the red.

Espoo, 28 October 2005

BOARD OF DIRECTORS


BUSINESS AREAS AND MARKET TRENDS

Consumer Packaging

                        III    II  I 05    IV   III  I-III I-III  III/I
                         05    05          04    04     05    04   I 05
                                                                  chang
                                                                      e
Turnover                196   199   238   256   264    633   789  -1.5%
EBITDA                   33     6    49    45    49     88   135       
  EBITDA, %            16.8   3.0  20.6  17.6  18.6   13.9  17.1       
Operating result         14   -16    27    30    25     25    64       
  Operating result, %   7.1  -8.0  11.3  11.7   9.5    3.9   8.1       
Non-recurring items       0     0     0    +3     0      0     0       
Return on capital       6.3  -6.5  11.1  11.9   9.7    3.7   8.6       
employed, %
Return on capital       6.3  -6.5  11.1  10.7   9.7    3.7   8.6       
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t     226   231   281   340   345    738 1,034  -2.2%
Paperboard              292   128   293   326   355    713 1,004  128.1
production, 1,000 t                                                   %
EBITDA = Earnings before interest, taxation, depreciation and
amortization
The Savon Sellu pulp mill is included in the figures for 2004.

Third quarter

The Consumer Packaging business area reported a third-quarter
operating profit of EUR 14 million (Apr.-June 2005: a loss of 16
million). Because of the labour disputes in Finland, the business
area’s deliveries to customers were clearly lower than the production
volume due to the exceptionally low stock levels in the supply chain.
The resultant increase in product stocks and their return to the
normal level was a central factor that improved earnings.

Deliveries by west European folding boxboard producers were at the
previous quarter’s level. M-real’s deliveries of folding boxboard
fell by 5 per cent owing to the labour disputes in Finland. The
average price for folding boxboard was at the previous quarter’s
level.

Linerboard deliveries likewise declined due to the labour disputes.
The selling price was unchanged. In western Europe, agreements have
been reached on regional price increases of about 25 euros per tonne.
The new prices will come into effect in November-December.

January-September

The business area’s operating result in January-September was a
profit of EUR 25 million (Jan.-Sept. 2004: 64 million). The operating
result was weakened by the lost delivery volumes due to the labour
dispute and the decrease in Metsä-Botnia’s operating result. In
addition, the result was burdened by the weakening in the US dollar
and pound sterling, the rise in the costs of oil-based raw materials
as well as higher energy costs.

Deliveries by west European folding boxboard producers were down 2
per cent compared with the same period of last year. M-real’s
deliveries fell by 13 per cent.

The average euro-denominated price of folding boxboard was on a par
with the same period of last year.

Publishing

                        III    II  I 05    IV   III  I-III I-III  III/I
                         05    05          04    04     05    04   I 05
                                                                  chang
                                                                      e
Turnover                181   177   208   225   202    566   577   2.3%
EBITDA                   35     0    29    26    31     64    75       
  EBITDA, %            19.3   0.0  13.9  11.6  15.3   11.3  13.0       
Operating result         14   -21     8     4     9      1     8       
  Operating result, %   7.7     -   3.8   1.8   4.5    0.2   1.4       
                             11.9
Non-recurring items       0    -2     0    +1     0     -2     0       
Return on capital       5.4  -7.4   2.7   1.5   3.0    0.2   1.0       
employed, %
Return on capital       5.4  -6.7   2.7   1.2   3.0    0.4   1.0       
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t     257   256   307   336   301    820   856   0.4%
Production, 1,000 t     294   155   308   314   309    757   834  89.7%
EBITDA = Earnings before interest, taxation, depreciation and
amortization

Third quarter

The Publishing business area’s operating result in the third quarter
was a profit of EUR 14 million (Apr.-June 2005: a loss of 21
million). The result does not include non-recurring items. The
previous quarter’s result includes a non-recurring charge of about
EUR 2 million for the Publishing business area’s share of the EUR 15
million expense provision for the efficiency-boosting programme at
the units in Sweden.

The operating result, excluding non-recurring items, was a profit of
EUR 14 million (a loss of 19 million). The operating result was
improved mainly by the conclusion of the labour dispute in Finland
and the resultant increase in product stocks to the normal level as
well as by an improvement in Metsä-Botnia’s operating result. The
rise in average selling prices also lifted profitability. The
strengthening in the dollar raised the euro-denominated price
obtained for deliveries outside Europe.

Deliveries by west European producers of magazine paper rose by 3 per
cent. The Publishing business area’s delivery volume was down one per
cent. The labour disputes cut into delivery volumes in both the
second and third quarters.

January-September

The business area’s operating result in January-September was a
profit of EUR 1 million (Jan.-Sept. 2004: 8 million). The result
includes the above-mentioned non-recurring expense provision of EUR 2
million.

The operating result, excluding non-recurring items, was a profit of
EUR 3 million (8). The operating profit was weakened by the lost
delivery volumes due to the labour dispute in Finland and the
decrease in Metsä-Botnia’s operating result. In addition, the result
was burdened by the weakening in the US dollar and pound sterling,
the rise in the costs of oil-based raw materials as well as higher
energy costs.

Deliveries of coated magazine paper by west European producers were
up 4 per cent on the corresponding period a year ago. The Publishing
business area’s delivery volume fell by 5 per cent. Deliveries
declined, particularly to western Europe and the Far East.

The average selling price rose by one per cent despite the
strengthening in the euro.

Commercial Printing

                        III    II  I 05    IV   III  I-III I-III  III/I
                         05    05          04    04     05 04      I 05
                                                                  chang
                                                                      e
Turnover                381   368   363   372   368  1,112 1,102   3.5%
EBITDA                   25     9    22    -8    20     55    65       
  EBITDA, %             6.6   2.4   6.1  -2.2   5.4    4.9   5.9       
Operating result          0   -17    -4   -35    -7    -21   -15       
  Operating result, %   0.0  -4.6  -1.1  -9.4  -1.9   -1.9  -1.4       
Non-recurring items       0    -1    +1   -27     0      0     0       
Return on capital       0.0  -4.9  -1.0     -  -1.8   -2.1  -1.3       
employed, %                              10.1
Return on capital       0.0  -4.6  -1.3  -2.1  -1.8   -2.1  -1.3       
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t     480   464   453   469   464  1,397 1,373   3.4%
Production, 1,000 t     482   452   470   472   471  1,404 1,413   6.6%
EBITDA = Earnings before interest, taxation, depreciation and
amortization

Third quarter

The Commercial Printing business area’s operating result in the third
quarter was EUR 0 million (Apr.-June 2005: a loss of 17 million). The
result does not include non-recurring items. The previous quarter’s
result includes a non-recurring charge of about EUR 1 million for
Commercial Printing’s share of the EUR 15 million expense provision
for the efficiency-boosting programme at the units in Sweden.

Profitability was improved mainly by the growth in delivery volumes
and product stocks. The growth in stocks was due primarily to the
return to a normal level of product stocks after the labour dispute
in Finland came to an end. The operating result was furthermore
improved by lower fixed costs as well as Metsä-Botnia’s higher
operating result.

Deliveries by west European producers of coated fine paper rose by 6
per cent. M-real’s coated fine paper deliveries rose by 5 per cent.
The selling price of coated fine paper and speciality paper was on a
par with the previous quarter.

January-September

The business area’s operating result in January-September was a loss
of EUR 21 million (Jan.-Sept. 2004: a loss of 15 million). The non-
recurring income and expenses in the result cancel each other out so
that the net result does not include non-recurring items. The result
for the same period a year ago does not include non-recurring items.

Profitability was weakened mainly by the fall in the average selling
price. The price of coated fine paper was at the level of the same
period of last year. The average price of speciality paper fell owing
to the less favourable product mix in overall sales. Prices of
uncoated products likewise fell. The strengthening in the euro
depressed the average euro-denominated selling price of exported
products. Profitability was furthermore weakened by the rise in the
costs of oil-based raw materials, higher energy costs and the
decrease in Metsä-Botnia’s operating result.

On the other hand thanks to the implemented savings measures, fixed
costs were clearly lower than in the same period last year, which
impacted positively on profitability.

Deliveries by west European producers of coated fine paper were at
the level seen in the same period of last year. M-real’s coated fine
paper deliveries rose by 4 per cent. The biggest increase in
deliveries was in western and eastern Europe.

Office Papers

                        III    II  I 05    IV   III  I-III  I-III III/I
                         05    05          04    04     05     04  I 05
                                                                  chang
                                                                      e
Turnover                174   187   176   162   168    537    505 -7.0%
EBITDA                   13     5    20    16    20     38     56      
  EBITDA, %             7.5   2.7  11.4   9.9  11.9    7.1   11.1      
Operating result         -3   -10     5     0     4     -8     10      
  Operating result, %  -1.7  -5.3   2.8   0.0   2.4   -1.5    2.0      
Non-recurring items       0   -12     3     0     0     -9      0      
Return on capital      -1.1  -5.0   2.4   0.1   1.9   -1.2    1.6      
employed, %
Return on capital      -1.1   0.9   0.9   0.1   1.9    0.3    1.6      
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t     254   279   259   233   246    792    728 -9.0%
Production, 1,000 t     260   268   248   244   241    776    731 -3.0%
EBITDA = Earnings before interest, taxation, depreciation and
amortization

Third quarter

The Office Papers business area’s operating result in the third
quarter was a loss of EUR 3 million (Apr.-June 2005: a loss of 10
million). The result does not include non-recurring items. The
previous quarter’s result includes a non-recurring charge of about
EUR 12 million for Office Papers’ share of the EUR 15 million expense
provision for the efficiency-boosting programme at the units in
Sweden.

The operating result, excluding non-recurring items, was a loss of
EUR 3 million (a profit of 2 million). Profitability was weakened by
the fall in delivery volumes compared with the exceptionally high
delivery volumes in the second quarter. In addition, the result was
weakened by the effects of the annual maintenance shutdowns that were
carried out as well as by the rise in oil-based raw material costs.

Deliveries by west European producers of uncoated fine paper fell by
7 per cent. The delivery volume of the Office Papers business area’s
products fell by 9 per cent.

January-September

The business area’s operating result in January-September was a loss
of EUR 8 million (Jan.-Sept. 2004: a profit of 10 million). The
result includes a total of EUR 9 million of non-recurring net
expenses, the biggest item of which is the above-mentioned expense
provision connected with the efficiency-boosting programme in Sweden.
The result for the same period a year ago does not include non-
recurring items.

The operating result, excluding non-recurring items, was a profit of
EUR 1 million (10). Profitability was weakened mainly by the 3 per
cent drop in the average selling price.

Deliveries of uncoated fine paper by west European producers declined
by one per cent compared with the corresponding period a year ago.
The volume of deliveries by the Office Papers business area rose by 6
per cent. Deliveries were up in all market areas.

Map Merchant Group

                        III    II  I 05    IV   III  I-III I-III  III/I
                         05    05          04    04     05    04   I 05
                                                                  chang
                                                                      e
Turnover                341   351   341   343   332  1,033 1,025  -2.8%
EBITDA                    6     9     8     2     6     23    22       
  EBITDA, %             1.8   2.6   2.3   0.6   1.8    2.2   2.1       
Operating result          5     7     6     0     4     18    17       
  Operating result, %   1.5   2.0   1.8     0   1.2    1.7   1.7       
Non-recurring items       0     0     0    -8     0      0     0       
Return on capital       6.6   8.6   7.7  -0.5   4.7    7.6   5.5       
employed, %
Return on capital       6.6   8.6   7.7   9.3   4.7    7.6   5.5       
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t     337   343   332   330   321  1,012   978  -1.8%
EBITDA = Earnings before interest, taxation, depreciation and
amortization

Third quarter

The operating result of the Map Merchants paper merchanting business
in the third quarter was a profit of EUR 5 million (Apr.-June 2005:
7). The operating result does not include non-recurring items. The
operating result was weakened by seasonal factors.

The integration of the Modo Merchants paper merchanting chain into
James McNaughton – a process that was started towards the end of last
year – was seen to completion during the quarter.

January-September

The operating result for January-September improved by EUR 1 million
compared with the same period a year ago. Profitability was improved
by the growth in delivery volumes as well as by lower fixed costs
thanks to the efficiency-boosting measures that were carried out. By
contrast, lower sales margins weakened profitability.

M-REAL GROUP  (all figures unaudited)

CONDENSED CONSOLIDATED INCOME STATEMENT

EUR million                1-9/05  1-9/04   Change 1-12/04  7-9/05
Sales                       3 872   4 158     -286   5 522   1 269
Other operating income        174      66      108      86      35
Operating expenses         -3 698  -3 878      180  -5 188  -1 190
Depreciation and             -285    -301       16    -392     -94
impairment losses
Operating profit               63      45       18      28      20
% of sales                    1.6     1.1              0.5     1.6
Share of results in            -3       1       -4       0       0
associated companies
Net exchange gains and        -26     -17       -9       4       0
losses
Other financial income        -99     -98       -1    -140     -19
and expenses, net
Profit on continuing          -65     -69        4    -108       1
operations before tax
% of sales                   -1.7    -1.7             -2.0     0.1
Income tax                     23      -9       32     -17       2
Profit on continuing          -42     -78       36    -125       3
operations
% of sales                   -1.1    -1.9             -2.3     0.2
Profit on discontinued          0     171     -171     173       0
operations
Profit for the period         -42      93     -135      48       3
% of sales                   -1.1     2.2              0.9     0.2
Minority interest              -1      -2        1      -3      -1
Profit/loss attributable      -43      91     -134      45       2
to shareholders of parent
company
 % of sales                  -1.1     2.2              0.8     0.2


Condensed Consolidated Balance sheet

EUR million         30.9.20       % 30.9.20       % 31.12.2       %
                         05             04             004
                                                                  
ASSETS                                                            
Non-current assets                                                
Intangible  assets      654    10.5    640     9.8     643     9.8
Tangible  assets      3 166    50.6  3 256    50.0   3 256    50.2
Biological assets        33     0.5     27     0.4      30     0.5
Shares in               113     1.8    140     2.2     127     2.0
associated and
other companies
Interest bearing         43     0.7     44     0.7      43     0.7
receivables
Deferred tax             40     0.6     31     0.5      39     0.6
receivables
Other non-interest       26     0.4     10     0.1       9     0.1
bearing receivables
                      4 075    65.1  4 148    63.7   4 147    63.9
Current assets                                                     
Inventories             726    11.6    742    11.4     726    11.2
Receivables                                                        
  Interest bearing      178     2.9     33     0.5      38     0.6
receivables
  Non-interest        1 159    18.5  1 230    18.9    1167    18.0
bearing
receivables
Cash and cash           120     1.9    190     2.9     242     3.7
equivalents
                      2 183    34.9  2 195    33.7    2173    33.5
Assets classified                      167     2.6     166     2.6
as held for sale
Total assets          6 258   100.0  6 510   100.0   6 486   100.0
SHAREHOLDER´S       30.9.20       % 30.9.20       % 31.12.2       %
EQUITY AND               05             04             004
LIABILITIES
Shareholder´s                                                     
equity
Equity attributable   2 310    36.9  2 004    30.8   2 393    36.9
to shareholders of
parent company
Minority interest        31     0.5     39     0.6      37     0.6
Total equity          2 341    37.4  2 043    31.4   2 430    37.5
Non-current                                                   
liabilities
 Deferred tax           359     5.8    382     5.9     386     6.0
liabilities
 Post employment        215     3.4    239     3.7     216     3.4
benefit obligations
 Provisions              56     0.9     23     0.3      36     0.5
 Other non-interest      82     1.3      8     0.1      15     0.2
bearing liabilities
 Interest bearing     1 639    26.2  1 610    24.7   1 640    25.3
liabilities
                      2 351    37.6  2 262    34.7   2 293    35.4
Current liabilities                                          
 Non-interest           823    13.1  1 215    18.7     861    13.3
bearing liabilities
 Interest bearing       743    11.9    953    14.6     866    13.3
liabilities
                      1 566    25.0  2 168    33.3   1 727    26.6
Liabilities                             37     0.6      36     0.5
classified as held
for sale
Total liabilities     3 917    62.6  4 467    68.6   4 056    62.5
Total shareholder´s   6 258   100.0  6 510   100.0   6 486   100.0
equity and
liabilities

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

EUR million               1-9/    1-9/   1-12/   7-9/
                          2005    2004    2004   2005
Cash flow from                                       
Operating Activities
Profit for the period      -43      91      45      2
  Adjustments to the       350     273     316     83
profit, total
  Change in working        -18     -89      52     -9
capital
Cash flow arising from     289     275     413     76
Operations
Finance costs, net         -96    -113    -162    -18
Income taxes paid          -31     -14     -34     -8
Net cash flow arising      162     148     217     50
from Operations
Activities
Investments in            -308    -145    -245   -105
intangible and
tangible assets
Asset sales and other      320     424     462      6
investing cash flow
Net cash flow arising       12     279     217    -99
from
Investing Activities
Share issue                        341     448       
Changes in loans and      -258    -710    -771     40
in
other financial items
Dividends paid             -39     -54     -54      0
Net cash flow arising     -297    -423    -377     40
from Financial
Activities
Changes in Cash and       -123       4      57     -9
Cash Equivalents
Cash and Cash              242     185     185    129
Equivalents at
beginning of period
Translation                  1       1       0      0
adjustments
Changes in Cash and       -123       4      57     -9
Cash Equivalents
Cash and Cash              120     190     242    120
Equivalents at end of
period


STATEMENT OF      Share   Share Translat   Fair  Retained Minori  Total
CHANGES IN       capital premium  ion     value  earnings   ty
SHAREHOLDER´S             fund  differen   and            intere
EQUITY                            ces     other             st
EUR million                              reserve
                                            s
Shareholder’s      304     473              2      1 466    19    2 264
equity according
to FAS
Dec 31, 2003
Effects of                                         -285     10    -275
adopting IFRS
Shareholder’s      304     473              2      1 181    29    1 989
equity according
to IFRS
Jan 1, 2004
Translation                        6                                6
differences
Change in                                                    5      5
minority
interest during
the period
Profit for the                                      45       3     48
period
Total recognised                   6        0       45       8     59
income for the
period
Dividends paid                                      -54            -54
Share issue        254     194                      -12            436
Shareholder’s      558     667     6        2      1 160    37    2 430
equity Dec
31,2004
Translation                                                         0
differences
Net expenses                                -1                     -1
recognised
directly in
equity
Change in                                                   -7     -7
minority
interest during
the period
Profit for the                                      -43      1     -42
period
Total recognised                            -1      -43     -6     -50
income for the
period
Dividends paid                                      -39            -39
Shareholder’s      558     667     6        1      1 078    31    2 341
equity Sep 30,
2005


KEY RATIOS                 1-9/     1-9/   1-12/    7-9/
                             05       04      04      05
Sales, MEUR               3 872    4 158   5 522   1 269
Operating profit, MEUR       63       45      28      20
excl. non-recurring          -7       45      61      20
items
Profit before taxes,        -65      -69    -108       1
MEUR
excl. non-recurring        -131      -69     -75       1
items
Profit for the period,      -43       91      45       2
MEUR
Earnings per share, EUR   -0.13     0.43    0.19    0.01
  excl. non-recurring     -0.34     0.43    0.28    0.01
items EUR
  from continuing         -0.34    -0.38   -0.53    0.01
operations EUR
  from discontinued        0.00     0.81    0.72    0.00
operations
  EUR
Return on equity, %        -2.3     -5.2    -5.7     0.4
excl. non-recurring        -6.2     -5.2    -4.6     0.4
items, %
Return on capital           2.3      1.7     0.9     2.3
employed, %
  excl. non-recurring       0.2      1.7     1.6     2.3
items, %
Equity ratio, %            37.4     31.4    37.5    37.4
Gearing ratio, %             87      112      89      87
Shareholder’s equity       7.04     9.42    7.29    7.04
per share, EUR
Interest-bearing net      2 040    2 294   2 183   2 040
liabilities, MEUR
Gross capital               308      145     245     105
expenditure,
MEUR
Personnel at the end of  15 412   16 224  15 960  15 412
the period

Non-recurring items for the period 1-9/2005 in operating profit are
capital gain on sale of Metsä Botnia shares (81), indemnity received
by M-real Alizay (4) and restructuring in Husum mill (-15) and in
financial items (-4).


SECURITIES AND             9/05     9/04   12/04
GUARANTEES
EUR million
For own loans               138      187     161
For associated                1        1       1
companies
For affiliated                5        7       5
companies
For others                   11       11      11
Total                       155      206     178
                                                
OPEN DERIVATIVE            9/05     9/04   12/04
CONTRACTS
EUR million
Interest rate            10 793   14 476  15 265
derivatives
Currency derivatives      3 952    4 753   6 641
Other derivatives            23        5       9
Total                    14 768   19 233  21 915

The fair value of open derivative contracts calculated at market
value at the end of the review period was
EUR -25.0 million (EUR +1.6 million Dec 31, 2004 and EUR  -11.9
million September 30, 2004).


RECONCILIATION OF INCOME STATEMENT

Condensed Consolidated Income Statement

EUR million                 1-9/2004
                     Reporte Effects    IFRS
                       d FAS      of  1-9/04
                      1-9/04 transit
                              ion to
                                IFRS
Sales                  4 078      80   4 158
Other operating           64       2      66
income
Operating expenses    -3 822     -56  -3 878
Share of results in       -5       5       0
associated
companies
Depreciation and        -362      61    -301
impairment losses
Operating profit         -47      92      45
Share of results in        0       1       1
associated
companies
Net exchange gains         4     -21     -17
and losses
Other financial          -94       4     -98
income and
expenses, net
Profit on               -137      68     -69
continuing
operations before
tax
Income tax                15     -24      -9
Profit on               -122      44     -78
continuing
operations
Profit on                173      -2     171
discontinued
operations
Profit for the            51      42      93
period
Minority interests        -2       0      -2
Profit/loss               49      42      91
attributable to
shareholders´ of
parent company


RECONCILIATION OF BALANCE SHEET
Condensed Consolidated Balance Sheet
EUR million             Reported  Effects of        IFRS
                           FAS    transition
                         30.9.04     to IFRS
ASSETS                                                  
Non-current assets                                      
Intangible  assets            675        -35         640
Tangible  assets            3 177         79       3 256
Biological assets             189       -162          27
Shares in associated          134          6         140
and other companies
Interest bearing               43          1          44
receivables
Deferred tax                   17         14          31
receivables
Other non-interest              9          1          10
bearing receivables
                            4 244        -96       4 148
Current assets                                          
Inventories                   748         -6         742
Receivables                                    
  Interest bearing             36         -3          33
receivables
  Non-interest bearing      1 218         12       1 230
receivables
Cash and cash                 201        -11         190
equivalents
                            2 203         -8       2 195
Assets classified as            0        167         167
held for sale
Total assets                6 447         63       6 510
SHAREHOLDER´S EQUITY     Reported Effects of        IFRS
AND LIABILITIES               FAS transition
                          30.9.04    to IFRS
Shareholder´s equity                          
Equity attributabe to       2 241       -237        2004
shareholders of
parent company
Minority interest              28         11          39
Total equity                2 269       -226       2 043
Non-current                                             
liabilities
  Deferred tax                381          1         382
liabilities
Post employment                26        213         239
benefit
obligations
  Provisions                   29         -6          23
Other non-interest             12         -4           8
bearing
liabilities
Interest bearing            1 606          4       1 610
liabilities
                            2 054        208       2 262
Current liabilities                                     
  Non-interest bearing      1 172         43       1 215
liabilities
  Interest bearing            952          1         953
liabilities
                            2 124         44       2 168
Liabilities classified          0         37          37
as held for sale
Total liabilities           4 178        289       4 467
Total shareholder´s         6 447         63       6 510
equity and liabilities


Quarterly information

SALES BY SEGMENTS      I-     I-   III    II  I 05    IV    III  2004
EUR million           III    III    05    05          04     04
                       05     04
Consumer Packaging    633    789   196   199   238   256    264  1045
Publishing            566    577   181   177   208   225    202   802
Commercial Printing  1112   1102   381   368   363   372    368  1474
Office Papers         537    505   174   187   176   162    168   667
Map Merchant Group   1033   1025   341   351   341   343    332  1368
Internal sales and     -9    160    -4   -23    18     6     53   166
other operations
GROUP TOTAL          3872   4158  1269  1259  1344  1364   1387  5522

OPERATING RESULT BY    I-     I-   III    II  I 05    IV    III  2004
SEGMENTS, EUR         III    III    05    05          04     04
million                05     04
Consumer Packaging     25     64    14   -16    27    30     25    93
Publishing              1      8    14   -21     8     4      9    12
Commercial Printing   -21    -15     0   -17    -4   -35     -7   -49
Office Papers          -8     10    -3   -10     5     0      4    10
Map Merchant Group     18     17     5     7     6     0      4    17
Other operations       48    -39   -10   -15    73   -16    -18   -55
Liiketulos             63     45    20   -72   115   -17     17    28
 % of sales           1.6    1.1   1.6  -5.7   8.6  -1.3    1.2   0.5
Share of result in     -3      1     0    -4     1    -1      1     0
associated
companies
Net exchange gains    -26    -17     0   -15   -11    21      4     4
and losses
Other financial       -99    -98   -19   -52   -28   -42    -36  -140
income and
expences, net
Result on             -65    -69     1  -143    77   -39    -14  -108
continuing
operations before
tax
Income tax             23     -9     2    21     0    -8     -8   -17
Result on             -42    -78     3  -122    77   -47    -23  -125
continuing
operations
Result on               0    171     0     0     0     2     -8   173
discontinued
operations
Result of the         -42     93     3  -122    77   -45    -31    48
period
Minority interest      -1     -2    -1     1    -1    -1     -1    -3
Profit/loss           -43     91     2  -121    76   -46    -32    45
attributable to
shareholders of
parent company
Earnings per share      -   0.43  0.01     -  0.23     -      -  0.19
adjusted for share   0.13               0.37        0.23   0.15
issue, EUR


                                                                     
NON-RECURRING ITEMS    I-    I-    III    II  I 05    IV    III  2004
                      III   III     05    05          04     04
                       05    04
Consumer Packaging      0     0      0     0     0     3      0     3
Publishing             -2     0      0    -2     0     1      0     1
Commercial Printing     0     0      0    -1     1   -27      0   -27
Office Papers          -9     0      0   -12     3     0      0     0
Map Merchant Group      0     0      0     0     0    -8      0    -8
Other operations       81     0      0     0    81    -2      0    -2
Non-recurring items    70     0      0   -15    85   -33      0   -33
in operations, total
Non-recurring          -4     0      0    -4     0     0      0     0
financial items
Non-recurring items,   66     0      0   -19    85   -33      0   -33
total
                                                                     
Operating result       -7    45     20   -57    30    19      8    61
excl. non-recurring
items
% of sales           -0.2   1.1    1.6  -4.5   2.2   1.4    0.6   1.1
Result before taxes, -131   -69      1  -124    -9    -3    -24   -75
result  excl. non-
recurring items
% of sales           -3.4  -1.7    0.1  -9.8  -0.7  -0.2   -1.7  -1.4
Earnings per share,     -  0.43   0.01     -     -     -      -  0.28
excl. non-recurring  0.34               0.32  0.03  0.15   0.15
items
Return on equity,    -6.2  -5.2    0.4     -  -1.3  -4.4   -4.5  -4.6
excl. non-recurring                     17.6
items
Return on capital     0.2   1.7    2.3  -0.3   3.0   1.5    1.7   1.6
employed, excl. non-
recurring items


RETURN ON      I-III  I-III III 05  II 05   I 05  IV 04 III 04   2004
CAPITAL           05     04
EMPLOYED, %
Consumer         3.7    8.6    6.3   -6.5   11.1   11.9    9.7    9.5
Packaging
Publishing       0.2    1.0    5.4   -7.4    2.7    1.5    3.0    1.1
Commercial      -2.1   -1.3    0.0   -4.9   -1.0  -10.1   -1.8   -3.5
Printing
Office Papers   -1.2    1.6   -1.1   -5.0    2.4    0.1    1.9    1.2
Map Merchant     7.6    5.5    6.6    8.6    7.7   -0.5    4.7    5.1
Group
GROUP TOTAL      2.3    1.7    2.3   -5.7   10.1   -1.4    1.7    0.9

CAPITAL EMPLOYED 30.9.05 30.6.05 31.3.05 31.12.0 30.9.04
EUR million                                    4
Consumer             898     876     957    1002    1025
Packaging
Publishing          1137    1063    1186    1208    1211
Commercial          1275    1362    1356    1320    1367
Printing
Office Papers        786     789     823     829     863
Map Merchant         341     327     333     329     326
Group
Other assets         286     266     196      77    -363
GROUP TOTAL         4723    4683    4851    4769    4438

PERSONNEL                  I-III         
Average                       05     2004
Consumer Packaging          2696    3 082
Publishing                  1500    1 526
Commercial Printing         4849    4 963
Office Papers               1962    2 036
Map Merchant Group          2516    2 528
Other operations            2172    2 397
GROUP TOTAL                15695   16 532



DELIVERIES                                                        
1000 tons            I-III I-III   III II 05  I 05 IV 04   III   2004
                      05    04      05                      04
Consumer Packaging     738  1034   226   231   281   340   345   1374
Publishing             820   856   257   256   307   336   301   1192
Commercial Printing   1397  1373   480   464   453   469   464   1842
Office Papers          792   728   254   279   259   233   246    961
Paper businesses      3009  2958   991   999  1019  1038  1011   3995
total
Map Merchant Group    1012   978   337   343   332   330   321   1308

PRODUCTION                                                        
1000 tons            I-III I-III   III II 05  I 05 IV 04   III   2004
                      05    04      05                      04
Consumer Packaging     713  1004   292   128   293   326   355   1330
Publishing             757   834   294   155   308   314   309   1148
Commercial Printing   1404  1413   482   452   470   472   471   1885
Office Papers          776   731   260   268   248   244   241    975
Paper mills total     2937  2977  1036   875  1026  1030  1021   4008
Metsä-Botnia’s pulp    649   868   234   108   307   283   290   1151
1)
M-real’s pulp         1112  1134   379   350   383   399   384   1533

1) Equals to M-real’s ownership in Metsä-Botnia (39% as from II 05,
47% until I 05).


M-REAL CORPORATION

Hannu Anttila
President and CEO

About Us

Metsä Boardwww.metsaboard.com Metsä Board is a leading European producer of premium fresh fibre paperboards including folding boxboards, food service boards and white kraftliners. Our lightweight paperboards are developed to provide better, safer and more sustainable solutions for consumer goods as well as retail-ready and food service applications. We work together with our customers on a global scale to innovate solutions for better consumer experiences with less environmental impact. The pure fresh fibres Metsä Board uses are a renewable resource, traceable to origin in sustainably managed northern forests. The global sales network of Metsä Board supports customers worldwide, including brand owners, retailers, converters and merchants. In 2017, the company’s sales totalled EUR 1.8 billion, and it has approximately 2,350 employees. Metsä Board, part of Metsä Group, is listed on the Nasdaq Helsinki.

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