M-REAL'S RESULT FOR 2006 NEGATIVE

M-real Corporation Stock Exchange Bulletin 6 February 2007 at 12.00


M-REAL'S RESULT FOR 2006 NEGATIVE

M-real’s 2006 result before taxes, excluding non-recurring items,
improved to a loss of EUR 92 million from a loss of EUR 142 million
in the previous year. The operating result excluding non-recurring
items amounted to EUR 45 million (4 in 2005). The operating result
improved mainly due to an increase in delivery volumes and slight
increases in the prices of uncoated fine paper and coated magazine
paper. Personnel costs excluding non-recurring items were down both
in absolute terms and in proportion to the business volume.

The result was weakened by higher raw material prices and higher
energy prices in particular, investment and maintenance shutdowns,
slightly lower selling prices of folding boxboard and coated fine
paper, and the strike of paper workers at the Finnish mills in May
2006. The higher raw material prices were offset by improved
efficiency in production. By comparison, in 2005 profitability
weakened particularly due to the labour dispute in Finland which led
to lower delivery volumes in paperboard and coated magazine paper, as
well as Metsä-Botnia’s lower operating result.


KEY FIGURES                  IV 06   III  II 06  I 06 IV 05  2006   2005
                                      06
Sales, EUR million           1,438 1,367  1,378 1,441 1,369 5,624  5,241
EBITDA, EUR million             48   106     17   128    91   299    439
 excluding non-recurring       104   108     71   128   106   411    384
items, EUR million
Operating result, EUR         -246    15    -75    35   -27  -271     36
million
 excluding non-recurring        14    17    -21    35    11    45      4
items, EUR million
Result before taxes, EUR      -291   -22   -111    16   -49  -408   -114
million
 excluding non-recurring       -31   -20    -57    16   -11   -92   -142
items, EUR million
Result for the period, EUR    -266   -33   -103     3   -38  -399    -80
million
Earnings per share, EUR      -0.81 -0.10  -0.31  0.01 -0.12 -1.21  -0.25
Return on equity, %          -52.2  -6.1  -18.3   0.5  -6.6 -18.9   -3.4
 excluding non-recurring      -2.6  -5.8   -9.1   0.5  -0.5  -4.4   -4.8
items, %
Return on capital employed,  -20.3   1.8   -5.6   3.4  -1.8  -5.2    1.2
%
 excluding non-recurring       1.5   2.0   -1.2   3.4   1.4   1.4    0.5
items, %
Equity ratio at end of        30.9  34.3   35.0  36.2  36.6  30.9   36.6
period, %
Gearing ratio at end of        126   111    108   100    95   126     95
period, %
Interest-bearing net         2,403 2,402  2,381 2,296 2,205 2,403  2,205
liabilities at end of
period, EUR million
Gross investments, EUR         123   101    101   103   144   428    452
million
Paper deliveries, 1,000      1,041 1,031  1,040 1,080 1,037 4,192  4,046
tonnes
Paperboard deliveries, 1,000   288   285    284   304   268 1,161  1,006
tonnes
Personnel at end of period   14,12 14,50  15,27 15,04 15,15 14,12  15,15
                                 5     9      7     6     4     5      4
Dividend proposed by the                                     0.06   0.12
Board of Directors,
EUR/share
EBITDA = Earnings before interest, taxation, depreciation and
amortization

The operating result for 2006, EUR -271 million (36), includes a net
of EUR -316 million (32) as non-recurring items, of which EUR -260
million (-38) were booked in the fourth quarter.

The operating result excluding non-recurring items amounted to EUR 14
million in the fourth quarter (7-9/2006:17). Compared with the
previous quarter, the operating result was weakened by a decrease in
product inventories and positively impacted mainly by higher selling
prices of uncoated fine paper.

Mikko Helander, M-real's CEO, comments on M-real's performance in
2006 and outlook:

”While our profitability excluding non-recurring items improved last
year, it remained heavily negative. This has to change.

Our operating environment has changed in the past few years. We
believe that the consolidation of the European paper industry will
continue and that the structure of the paper merchanting market is
going to change. Higher production input costs, the unprecedentedly
low product prices, changes in exchange rates and the resulting
weakening of our ability to compete with prices all pose changes to
our operating environment.

In March 2006 M-real's Board of Directors initiated a strategic
review of M-real's current business portfolio. As the first step in
the review, we announced an extensive restructuring programme in
October 2006. The programme includes capacity closures, a new costs
savings programme, a reduction of working capital and a number of
divestments. The programme is planned for completion by the end of
2007.

In connection with the restructuring programme, M-real closed its
paper mill at Sittingbourne in the UK at the end of January 2007 and
is closing two paper machines (PM 6 and 7) at the Gohrsmühle mill in
Germany by the end of February. The Wifsta mill in Sweden will be
closed by the end of June.

In order to improve its balance sheet structure and because of
reduced need for pulp at its mills, M-real sold 9 per cent of Metsä-
Botnia's shares to Metsäliitto Cooperative on 30 January 2007.
Metsäliitto paid EUR 240 million for the shares, and M-real booked a
capital gain of approximately EUR 135 million. In addition, M-real
has initiated the sale process for the folding carton plants. Other
divestments will be announced later.

Demand for M-real's main products is forecast to improve slightly in
the first quarter of 2007 due to seasonal factors compared with the
fourth quarter of 2006. In fine paper products, capacity utilisation
rates are very high at the beginning of the year. We have initiated
measures to increase the prices of fine paper products and are
currently confident that we will be able to push through these
increases at least in part. We will continue to work actively towards
raising the prices of fine paper products. In uncoated magazine
papers, the market situation has fallen short of our expectations in
the past few months. The price increases for folding boxboard and
coated magazine paper will be challenging in the short term.

The need to increase product prices is pressing for all of our main
grades. We anticipate the market balance to improve for all of M-
real's main paper grades due to capacity closures already implemented
or planned for 2007.

The first-quarter 2007 result before taxes and excluding non-
recurring items is expected to improve from the last quarter in 2006.
In line with the restructuring programme, M-real's primary target for
2007 is to improve its balance sheet and its profitability. Our
result for 2007 will be burdened by an increase of production input
costs, estimated at more than EUR 100 million, although their impact
will be eliminated through the cost savings programme. In order to
achieve a positive result before taxes and non-recurring items in
2007, we must be able to raise the prices of our paper products,”
says Helander.


M-REAL CORPORATION

For additional information, please contact Mikko Helander, CEO, tel.
+358 10 469 4300 or Seppo Parvi, CFO, tel. +358 10 469 4321.


M-REAL CORPORATION

FINANCIAL STATEMENTS BULLETIN 2006

MARKET SITUATION IN 2006

Economic growth in Western Europe accelerated markedly in 2006
compared with the previous year. Growth also continued very strongly
in North America and Asia. In 2007 economic growth is generally
forecast to decrease somewhat in all of the above-mentioned areas.
Production input costs increased further in 2006, creating
profitability pressures in various industrial sectors. On the foreign
exchange market, the average rates of the US dollar and the British
pound remained approximately at the previous year's level.

In Europe, printed advertising spending - one of the most important
indicators of trends in paper consumption - increased at the same
pace as overall economic growth. The moderate growth rate is expected
to continue also in 2007.

In 2006, European deliveries by Western European coated and uncoated
fine paper producers remained at somewhat higher levels compared with
the previous year, while deliveries of coated magazine papers
continued at the previous year's level. The deliveries of all the
above-mentioned paper grades to Eastern Europe grew significantly in
2006. Overcapacity on the European paper market continued in 2006. No
significant changes took place in the average paper market prices in
Europe. The price of uncoated fine paper was the only one to rise
slightly.

Recent capacity closures by European paper producers and further
closures scheduled for the second half of 2007 will help the market
regain its balance. On the other hand, the weak exchange rate of the
US dollar may cause many European paper producers to try to shift
their export deliveries to Europe, which would partially offset the
impact of capacity closures on the internal balance within the
European market.

In folding boxboard, deliveries to Europe by Western European
producers increased slightly in 2006 compared with the previous year.
Demand developed favourably in Eastern Europe in particular.
Comparability with the previous year is affected by the labour
dispute in the Finnish paper industry. The market prices of folding
boxboard remained unchanged.


RESULT FOR THE PERIOD

M-real's sales in 2006 totalled EUR 5,624 million (5,241). Comparable
sales rose by 8.1 per cent.

Operating result was EUR -271 million (36). The operating result
includes a net of EUR -316 million (32) as non recurring items. Non-
recurring income amounted to EUR 3 million (88) and non-recurring
costs to EUR 319 million (56).

The most significant non-recurring costs in 2006 were:
- an impairment loss of EUR 176 million in the fourth quarter
- a write-down on fixed assets and cost provision for the closing of
the Sittingbourne mill of EUR 60 million in the fourth quarter
- a write-down of EUR 15 million on the fixed assets of the Wifsta
mill in the fourth quarter
- a sales loss of EUR 37 million for the Pont Sainte Maxence mill, of
which EUR 35 million was in the second quarter and EUR 2 million in
the third quarter
- costs related to personnel reductions at the Stockstadt, Hallein
and Alizay mills totalled EUR 24 million, of which EUR 19 million was
in the second quarter and EUR 5 million was in the fourth quarter
- an efficiency improvement programme in the Map Merchant Group
business of EUR 6 million in the fourth quarter.

The most significant non-recurring income item in 2005 was the
capital gain of EUR 81 million on the sale of Metsä-Botnia shares.
The most significant non-recurring costs in 2005 were:
- a write-down and cost provision for the Pont Sainte Maxence mill,
EUR 24 million
- a cost provision of EUR 15 million for the operational efficiency
programme at the Swedish mills

The operating result excluding non-recurring items amounted to EUR 45
million (4). The operating result improved on the previous year due
to an increase in delivery volumes and moderate increases in the
prices of uncoated fine paper and coated magazine paper. Personnel
costs excluding non-recurring items were down both absolutely and
especially in proportion to the business volume.

The result was weakened by higher raw material prices and higher
energy prices in particular, investment and maintenance shutdown,
slightly lower prices of folding boxboard and coated fine paper, and
the strike of paper workers at the Finnish mills in May 2006. Higher
raw material prices were offset by improved production efficiency.

In 2005 profitability weakened particularly due to labour dispute in
Finland which led to lower delivery volumes in paperboard and coated
magazine paper, as well as Metsä-Botnia’s lower operating result.


The total volume of paper deliveries was 4,192,000 tonnes
(4,046,000). Production was curtailed by 238,000 tonnes in line with
demand (199,000).

Deliveries of paperboard products totalled 1,161,000 tonnes
(1,006,000). Production curtailments  were 60,000 tonnes (44,000).

The operating result for 2006 includes 39 per cent of Metsä-Botnia's
operating result. In the previous year the operating result included
47 per cent of Metsä-Botnia’s operating result during January-March
and 39 per cent during April-December.

The share of the results in associated companies amounted to EUR 0
million (-2).

Financial income and expenses totalled EUR -137 million (-148).
Foreign exchange gains and losses from accounts receivable and
payable, financial income and expenses and the valuations of currency
hedging were EUR 0 million (-33). Net interest and other financial
expenses amounted to EUR 137 million (115). Other financial expenses
include EUR 6 million of valuation gains on interest rate hedges (4).

At the end of December the exchange rate of the US dollar against the
euro was 11.6 per cent lower and the rate of the British pound
against the euro 2.0 per cent higher than at the end of 2005. On
average the dollar weakened by 0.9 per cent and the pound
strengthened by 0.3 per cent.

The result before taxes was EUR -408 million (-114). The result
before taxes excluding non-recurring items totalled EUR -92 million (-
142).

The net result for the report period was EUR -399 million (-80). The
positive impact of income taxes, including the change in deferred tax
liability, was EUR 9 million (34).

Earnings per share were EUR -1.21 (-0.25). Earnings per share
excluding non-recurring items were EUR -0.27 (-0.35).

The return on equity was -18.9 per cent (-3.4); excluding non-
recurring items -4.4 per cent (-4.8). Return on capital employed was
-5.2 per cent (1.2), excluding non-recurring items 1.4 per cent
(0.5).


OCTOBER-DECEMBER COMPARED WITH THE PREVIOUS QUARTER

In the fourth quarter of the year, sales amounted to EUR 1,438
million (7-9/2006: 1,367). Comparable sales were up 5.1 per cent.

The operating result was EUR -246 million (15). The operating result
includes a net of EUR -260 million as non-recurring items. Non-
recurring income amounted to EUR 3 million and non-recurring costs to
EUR 263 million. The operating result for the previous quarter
included EUR 2 million of non-recurring costs.

The most significant non-recurring costs in the fourth quarter were:
- an impairment loss of EUR 176 million
- a write-down on fixed assets and a cost provision for the closing
of the Sittingbourne mill of EUR 60 million
- a write-down of EUR 15 million on the fixed assets of the Wifsta
mill
- personnel reductions at the Hallein mill of EUR 5 million
- an efficiency improvement programme in Map Merchant Group of EUR 6
million.

The operating result excluding non-recurring items totalled EUR 14
million (17). The operating result was negatively impacted by a
decrease in product inventories and positively impacted by higher
selling prices of uncoated fine paper.

The deliveries of paper products totalled 1,041,000 tonnes
(1,031,000). Production was curtailed by 87,000 tonnes in line with
demand (52,000).

Deliveries of paperboard products totalled 288,000 tonnes (285,000).
Production curtailments were 19,000 tonnes (10,000).

The share of the results in associated companies amounted to EUR 0
million (1).

Financial income and expenses totalled EUR -45 million (-38). Foreign
exchange gains and losses from accounts receivable, accounts payable,
financial income and expenses and the valuation of currency hedging
were EUR -4 million (-1). Net interest and other financial expenses
amounted to EUR -41 million (-37). As in the previous quarter, other
financial expenses do not include a valuation gain on interest rate
derivatives.

At the end of December the exchange rate of the US dollar against the
euro was 4.0 per cent lower and the rate of the British pound against
the euro 0.9 per cent higher than at the end of September. On
average, the US dollar weakened by 1.3 per cent and the pound
strengthened by 1.0 per cent compared with the previous quarter.

The result before taxes excluding non-recurring items amounted to EUR
-31 million (-20) and including non-recurring items to -291 million (-
22).

The result for the fourth quarter was EUR -266 million (-33). The
positive impact of income taxes, including the change in deferred tax
liability, was EUR 25 million (-11).

Earnings per share were EUR -0.81 (-0.10); excluding non-recurring
items, EUR -0.04 (-0.08).

The return on equity was -52.2 per cent (-6.1), excluding non-
recurring items -2.6 per cent (-5.8). The return on capital employed
was -20.3 per cent (1.8), excluding non-recurring items 1.5 per cent
(2.0).


IMPAIRMENT TESTING ACCORDING TO IAS 36

M-real announced an impairment charge of approximately EUR 200
million on 18 October 2006 in accordance with IAS 36 impairment
testing. The final amount has been specified at EUR 176 million,
which is divided as follows:

- Commercial Printing: EUR 108 million on goodwill
- Kyro Paper: EUR 4 million on other fixed assets. Kyro Paper is
included in the Consumer Packaging business area.
- Map Merchant Group: EUR 63 million, of which EUR 49 million on
goodwill and EUR 14 million on other fixed assets
- M-real's share of the results of Metsä-Botnia's impairment testing:
EUR 1 million.

M-real expects the impairment charges to have a positive impact of
approximately EUR 2 million on its operating result from 2007
onwards. The impairment charges reduced taxes in 2006 by
approximately EUR 3 million.


PERSONNEL

M-real employed an average of 14,884 people in 2006 (2005: 15,578),
of whom 4,559 worked in Finland (4,687). The net reduction was 694
employees of which -71 resulted from of acquisitions and divestments.

The number of personnel at the end of the year was 14,125 employees
(15,154 employees at 31 December 2005), of whom 4,220 worked in
Finland (4,488). The net reduction was 1,029 employees of which -169
resulted from of acquisitions and divestments.

The Group's personnel include 39 per cent of Metsä-Botnia’s personnel
since 31 March 2005. Earlier numbers of personnel include 47 per cent
of Metsä-Botnia’s employees.


INVESTMENTS

Gross investments in 2006 totalled EUR 428 million (452), which
includes a EUR 222 million share of Metsä-Botnia’s investments (115).
This share includes EUR 17 million paid for the shares in Metsä-
Botnia's subsidiaries and associated companies in Uruguay. Total
investments in fixed assets amounted to EUR 411 million.

M-real's share of Metsä-Botnia's investments is based on a 39 per
cent share of ownership. In 2005 M-real’s share was 47 per cent in
January-March and 39 per cent in April-December.

Work on Metsä-Botnia's pulp mill investment project in Uruguay has
progressed as planned. The mill, which will produce one million
tonnes of eucalyptus pulp, will start up in the third quarter of
2007. The total cost of the investment is approximately USD 1.1
billion.

2006 saw the completion of a EUR 60 million investment at the Simpele
mill, which included modernisation of the board machine, replacement
of the reeler and reel and sheet packaging unit, and increase in
sheeting capacity. The investment increased the mill's annual
production capacity to EUR 215,000 tonnes of folding boxboard.


ACQUISITIONS, DIVESTMENTS, AND RESTRUCTURING

On 30 June 2006, M-real sold the Pont Sainte Maxence specialty paper
mill in France to the German company Arques Industries. A loss of EUR
37 million for the sale of the mill was booked in 2006. The annual
capacity of the Pont Sainte Maxence mill was 120,000 tonnes. The mill
employed approximately 200 people.

On 29 September 2006, Kyro Corporation and M-real Corporation agreed
on an arrangement which gives M-real the option to purchase the
Kyröskoski natural gas powerplant from Kyro. The plant is owned by
Kyro Power Oy, a subsidiary of Kyro Corporation. According to the
agreement, M-real will be able to exercise its option to purchase in
the summer of 2007 when the current energy supply agreement between M-
real and Kyro expires.


FINANCING

At the end of the year, the equity ratio was 30.9 per cent (31
December 2005: 36.6) and the gearing ratio 126 per cent (95). Some of
M-real's loan agreements specify a limit of 120 per cent for the
company's gearing ratio and a limit of 30 per cent for the equity
ratio. When calculating the gearing ratio, non-cash write-offs on
fixed assets can be returned to shareholders' equity. The maximum
amount of such returns is EUR 300 million out of which EUR 263
million have been utilised at the end of 2006. When calculating the
equity ratio, deferred tax liability can be added to shareholders'
equity. Calculated as specified in the agreements, M-real's gearing
ratio at the end of 2006 was approximately 111 per cent and the
equity ratio approximately 36 per cent.

Interest-bearing net liabilities amounted to EUR 2,403 million at the
end of the year (2,205). Seven per cent of the Group's long-term
loans were denominated in foreign currencies. Of these loans, 80 per
cent was subject to variable interest rates and the rest to fixed
interest rates. The average interest rate on the loans was 6.0 per
cent and the average maturity of long-term loans was 4.1 years at the
end of the year. The interest rate maturity was 7 months at the end
of the year. During the report period the interest rate maturity has
varied between 7 and 16 months.

Cash flow arising from operations amounted to EUR 367 million (318).
Working capital was down EUR 65 million (up EUR 82 million).

At the end of the period under review, an average of 7 months of net
foreign currency exposure was hedged. The degree of hedging during
the period has varied between 7 and 9 months; approximately 97 per
cent of the shareholders’ equity denominated in currencies other than
euro was hedged at the end of the report period.

Liquidity is good. Liquidity at the end of 2006 was EUR 1,779
million, of which EUR 1,597 million consisted of binding long-term
credit commitments and EUR 182 million represented liquid funds and
investments. In addition, to meet its short-term financing needs, M-
real had at its disposal non-binding domestic and foreign commercial
paper programmes and credit facilities amounting to about EUR 700
million.

In December, M-real issued a EUR 400 million 4-year floating rate
Eurobond. The bond will mature on 15 December 2010 and its confirmed
rate of interest is 3-month Euribor plus 3.625 per cent. The bond was
issued for the purpose of refinancing the company's existing loans.

On 7 July 2006, Moody’s Investors Services downgraded the rating on M-
real's long-term credits from Ba3 to B2. The rating outlook remained
negative.

On 4 August 2006, Standard & Poors Ratings Services downgraded the
rating on M-real’s long-term credits from BB- to B+. The rating
outlook remained negative.


SHARES

The highest price of M-real’s B share on the Helsinki Stock Exchange
in 2006 was EUR 5.62, the lowest EUR 3.26 and the average price EUR
4.41. At the end of the year, the price of the Series B share was EUR
4.79. The average price in 2005 was EUR 4.36. The last quotation of
the share price at the end of 2005 was EUR 4.22.

The trading volume of the Series B share was EUR 2,322 million, or
179 per cent of the shares outstanding. The market value of the
Series A and B shares at the end of the year totalled EUR 1,573
million.

On 31 December 2006, Metsäliitto Cooperative 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 36.2 per cent
of the shares.

The Annual General Meeting on 13 March 2006 authorized the Board of
Directors for one year from the date of the Annual General Meeting to
decide on increasing the share capital through one or more rights
issues and/or one or more issues of convertible bonds such that in
the rights issue or issue of convertible bonds, a total maximum of
58 365 212 M-real Corporation Series B shares with a nominal value of
EUR 1.70 can be subscribed for, and that the company's share capital
can be increased by a total maximum of EUR 99 220 860.40. The
authorization will confer the right to disapply shareholders' pre-
emptive right to subscribe for new shares and/or issues of
convertible bonds and to decide on the subscription prices and other
terms and conditions. Shareholders' pre-emptive subscription rights
can be disapplied providing that there is a significant financial
reason for the company to do so, such as strengthening of the
company's balance sheet, making possible business structuring
arrangements or taking other measures for developing the company's
business operations. The Board of Directors may not disapply the pre-
emptive subscription rights on behalf of a related party.


BOARD OF DIRECTORS AND AUDITORS

The Annual General Meeting elected the following persons to M-real’s
Board of Directors: Mr Heikki Asunmaa, Titular Counsellor of Forest
Economy; Mr Kim Gran, President of Nokian Tyres plc; Mr Kari Jordan,
President & CEO of Metsäliitto Cooperative; Mr Asmo Kalpala, CEO of
Tapiola Group; Mr Erkki Karmila, Executive Vice President of Nordic
Investment Bank; Mr Runar Lillandt, Titular Farming Counsellor; Mr
Antti Tanskanen, CEO of the OP Bank Group, and Mr Arimo Uusitalo,
Titular Farming Counsellor. The term of office of the Board members
extends up to the end of the next Annual General Meeting.

At its organising meeting, the Board of Directors elected Mr Kari
Jordan as Chairman and Mr Arimo Uusitalo as Vice Chairman.

The Annual General Meeting elected as M-real’s auditors Mr Göran
Lindell, Authorized Public Accountant, and the Authorized Public
Accountants PricewaterhouseCoopers Oy, with Mr Jouko Malinen,
Authorized Public Accountant, acting as Principal Auditor and Mr
Björn Renlund, Authorized Public Accountant, and Mr Markku Marjomaa,
Authorized Public Accountant, acting as deputy auditors. The term of
office of the auditors and deputy auditors lasts until the end of the
next Annual General Meeting.


COMPETITION AUTHORITY INVESTIGATIONS

The European Commission closed the investigations into fine paper in
August 2006 and into magazine paper in November 2006. No sanctions
were imposed on M-real as a result of the investigations.

In connection with the European Commission investigations, purchasers
of magazine paper filed several class action complaints in the United
States, citing M-real as one of the defendants alongside other paper
producers. In November 2006, the claimants for the most significant
class action abandoned their action against M-real and a number of
other defendants. M-real is still a defendant in two class actions,
for which it is actively pursuing a resolution.


STRATEGY REVIEW AND RELATED MEASURES

On 13 March 2006, M-real’s Board of Directors initiated a strategic
review of M-real's current business portfolio, with a view to M-real
exploring the opportunities of participating in the consolidation and
restructuring of the European paper industry and the potential
benefits of participation. On 18 October 2006, M-real announced an
extensive restructuring programme as a first step in its strategic
review.

The programme includes capacity closures, a new EUR 100 million cost
savings programme and potential divestments. The programme took
effect immediately with a planned completion by the end of 2007. M-
real also launched a programme to reduce working capital by EUR 100
million. M-real has defined and initiated most of the costs savings
measures and working capital reductions. The sale process for the
folding carton plants has begun and other eventual divestments will
be announced later. More information about mill closures and the sale
of the stake in Metsä-Botnia can be found under the heading Events
After The Balance Sheet Date.

All measures required by the cost saving programme of EUR 200 million
announced in 2004 were brought to completion in 2006. The programme
was completed ahead of schedule.

M-real's Board of Directors appointed Mikko Helander as the new CEO
for M-real as of 18 October 2006. His predecessor, Hannu Anttila, was
appointed Executive Vice President, Strategy, for Metsäliitto Group.


EVENTS AFTER THE BALANCE SHEET DATE

The Sittingbourne paper mill in the UK was closed at the end of
January 2007. The fine paper machines (PM 6 and 7) at the Gohrsmühle
mill in Germany will be closed by the end of February 2007 and the
Wifsta fine paper mill in Sweden by the end of June. EUR 76 million
relating to these closures were recognised as an expense in the
annual accounts in 2006 and a cost provision of approximately EUR
50–60 million will be booked in the first quarter of 2007 to complete
the closures. The cash impact of the closures is estimated at
approximately EUR -80 million, of which just over half will be
realised in 2007 and the rest in 2008-2010. The result and cash
impacts will be defined as the closures are carried out. The planned
closures did not have a significant cash impact in 2006.

M-real Corporation sold 9 per cent of Metsä-Botnia's shares to
Metsäliitto Cooperative for EUR 240 million on 30 January 2007,
booking a capital gain of approximately EUR 135 million.


NEAR TERM OUTLOOK

Economic growth in Europe is generally forecast to slow down somewhat
in 2007 although continuing at a moderate rate. Printed advertising
spending is forecast to grow somewhat faster than overall economic
growth.

Production input costs will continue to grow. The price of wood in
particular has recently increased markedly. This is attributable to
the increased use of wood as an energy source and availability
problems caused by the mild early winter in Northern Europe.

The demand for M-real's main products was very good in the last
quarter of 2006. The demand for paperboard products was at a
reasonable level, while the demand for coated magazine paper fell
short of our expectations. Demand for M-real's main products is
forecast to improve slightly in the first quarter of 2007 due to
seasonal factors. In fine paper products, capacity utilisation rates
are very high at the beginning of the year. We have initiated
measures to increase the prices of fine paper products. As a result
of the targeted increases, we are confident the prices of both
uncoated and coated fine papers will rise slightly in the first
quarter of 2007 compared with the last quarter of 2006. We will also
continue to work actively towards raising the prices of fine paper
products. The price increases for folding boxboard and coated
magazine paper will be challenging in the short term.

We anticipate the market balance to improve for all of M-real's main
paper grades due to capacity closures already implemented or planned
for 2007. The need to increase product prices is pressing for all of
our main paper grades.

Implementation of the restructuring programme, announced in October
2006 as the first step in M-real's strategy review, is progressing as
planned. The strategic review continues. The first-quarter result
before taxes and excluding non-recurring items in 2007 is expected to
improve from the last quarter in 2006.

Espoo, 6 February 2007

THE BOARD OF DIRECTORS


BUSINESS AREAS AND MARKET DEVELOPMENT

Consumer Packaging

                          IV   III    II  I 06     IV  2006  2005  2006/0
                          06    06    06           05                   5
                                                                   change
Sales                    241   236   237   257    231   971   864  +12.4%
EBITDA                    25    38    24    44     37   131   125        
 EBITDA, %              10.4  16.1  10.1  17.1   16.0  13.5  14.5        
Operating result           0    17     2    24     16    43    41        
 Operating result, %     0.0   7.2   0.8   9.3    6.9   4.4   4.7        
Non-recurring items       -4     0     0     0      0    -4     0        
Return on capital        0.3   7.5   1.3  10.9    7.8   5.1   4.8        
employed, %
Return on capital        2.1   7.5   1.3  10.9    7.8   5.5   4.8        
employed excluding
non-recurring items,
%
Deliveries, 1,000        288   285   284   304    268  1,16  1,00  +15.4%
tonnes                                                    1     6
Paperboard               279   273   270   299    272  1,12   985  +13.8%
production, 1,000                                         1
tonnes
EBITDA = Earnings before interest, taxation, depreciation and
amortization

2006 compared with 2005

The Consumer Packaging business area reported an operating result of
EUR 47 million excluding non-recurring items for 2006 (41). The
operating result including non-recurring items amounted to EUR 43
million (41). The result includes an impairment charge of EUR 4
million on Kyro Paper's fixed assets. In 2005 the result was weakened
by the 7-week labour dispute in the Finnish paper industry and the
resulting decrease in production and delivery volumes. In 2006
profitability was weakened by the increase in energy cost and oil-
driven costs as well as the machine investment at the Simpele mill in
the second quarter.

Deliveries by Western European folding boxboard producers increased
by 6 per cent compared with the previous year. M-real’s deliveries
were up 16 per cent. In 2005 delivery volumes were exceptionally low
due to the labour dispute in the Finish paper industry. The average
selling price of folding boxboard decreased slightly on the previous
year.

The volume of linerboard deliveries increased markedly. The average
selling price remained on par with the previous year.

The fourth quarter compared with the previous quarter

The business area's operating result weakened on the previous
quarter, amounting to EUR 4 million excluding non-recurring items
(17).The operating result including non-recurring items was EUR 0
million. The result was weakened by a decrease in product inventories
and higher fixed costs.

Deliveries by Western European folding boxboard producers decreased
by 2 per cent compared with the previous quarter. M-real’s deliveries
of folding boxboard remained on par with the previous quarter. The
selling price of folding boxboard remained stable.

Demand for linerboard was good. The delivery volume was markedly
higher than in the third quarter. The selling price denominated in
euros remained unchanged.

Publishing

                      IV 06   III    II     I   IV  2006   2005 2006/05
                               06    06    06   05               change
Sales                   220   226   216   225  230   887    796  +11.4%
EBITDA                   23    36    23    32   34   114     98        
 EBITDA, %             10.5  15.9  10.6   14.  14.  12.9   12.3        
                                            2    8
Operating result          3    14     2    11   13    30     14        
 Operating result, %    1.4   6.2   0.9   4.9  5.7   3.4    1.8        
Non-recurring items       0     0     0     0    0     0     -2        
Return on capital       1.4   5.3   0.9   4.1  4.8   3.0    1.3        
employed, %
Return on capital       1.4   5.3   0.9   4.1  4.8   3.0    1.6        
employed excluding
non-recurring items,
%
Deliveries, 1,000       313   320   307   318  326  1,25   1,14   +9.8%
tonnes                                                 8      6
Production, 1,000       283   307   270   307  315  1167   1072   +8.9%
tonnes
EBITDA = Earnings before interest, taxation, depreciation and
amortization

2006 compared with 2005

The business area reported an operating result of EUR 30 million for
2006 (-14). In 2005 the operating result was significantly weakened
by the labour dispute in the Finnish paper industry. The 2006 result
was positively impacted by the increase in the average selling price
and cost saving measures, while the rise in the price of energy had a
negative impact on the result.

Deliveries by Western European coated magazine paper producers
remained at the previous year's level in 2006. The Publishing
business area's delivery volume was up 10 per cent. 2005 was affected
by the labour dispute in the Finnish paper industry.

The fourth quarter compared with the previous quarter

The business area's operating result was EUR 3 million in the fourth
quarter (14). The operating result does not include non-recurring
items. The operating result was weakened by a change in inventories,
higher manufacturing costs and lower delivery volumes. The average
selling price also decreased slightly.

Deliveries by Western European coated magazine paper producers
decreased by 2 per cent. The Publishing business area’s delivery
volume was down 2 per cent.

Commercial Printing

                         IV   III    II  I 06    IV  2006   2005 2006/0
                         06    06    06          05                   5
                                                                 change
Sales                   369   361   380   394   376  1504   1488  +1.1%
EBITDA                  -33    14   -26    24     3   -21     58       
 EBITDA, %             -8.9   3.9  -6.8   6.1   0.8  -1.4    3.9       
Operating result       -179   -10   -51    -2   -41  -242    -62       
 Operating result, %      -  -2.8     -  -0.5     -     -   -4.2       
                       48.5        13.4        10.9  16.1
Non-recurring items    -173    -2   -41     0   -29  -216    -29       
Return on capital         -  -3.2     -  -0.5     -     -   -4.9       
employed, %            63.3        16.2        13.7  21.7
Return on capital      -1.9  -2.6  -3.2  -0.5  -3.9  -2.1   -2.6       
employed excluding
non-recurring items,
%
Deliveries, 1,000       464   453   481   497   469  1,89   1,86  +1.6%
tonnes                                                  5      6
Production, 1,000       464   456   494   509   476  1,92   1,88  +2.3%
tonnes                                                  3      0
EBITDA = Earnings before interest, taxation, depreciation and
amortization
Pont Sainte Maxence is included until 30 June 2006.

2006 compared with 2005

The Commercial Printing business area reported an operating result of
EUR -26 million (-33) excluding non-recurring items for 2006. The
operating result including non-recurring items was EUR -242 million (-
62). The most significant non-recurring items were an impairment
charge of EUR 108 million, a write-down on fixed assets and a
provision for the closing of the Sittingbourne mill of EUR 60
million, a sales loss of EUR 37 million for the Pont Sainte Maxence
mill and costs of EUR 9 million related to the efficiency improvement
programmes at the Stockstadt and Hallein mills.

Profitability was positively impacted by a 5 per cent increase in
comparable delivery volumes and lower fixed costs. The selling prices
remained at previous year’s level. The result was weakened by the
increase in the fibre costs and energy costs in particular.

Deliveries by Western European coated fine paper manufacturers
increased by 4 per cent. M-real’s deliveries of coated fine paper
were up 3 per cent on the previous year.

The fourth quarter compared with the previous quarter

The business area's operating result excluding non-recurring items
amounted to EUR -6 million in the fourth quarter (-8). The operating
result including non-recurring items was EUR -179 million (-10). The
fourth-quarter result includes non-recurring expenses of EUR 173
million (an impairment charge of EUR 108 million, a write-down and a
provision of EUR 60 million for the Sittingbourne mill and a cost of
EUR 5 million for the personnel reduction programme at the Hallein
mill). The previous quarter includes EUR 2 million of non-recurring
items arising from the adjustment of the sale price of the Pont
Sainte Maxence mill.

Lower fixed costs had a positive impact on profitability, while
somewhat higher energy and raw material costs had a negative impact.

Deliveries by Western European coated fine paper manufacturers
increased by 3 per cent. M-real’s total deliveries of coated fine
paper were up 2 per cent. The average selling price denominated in
euros was on par with the previous quarter. The price of speciality
paper increased.

Office Papers

                        IV  III   II     I    IV   2006  2005  2006/05
                        06   06   06    06    05                change
Sales                  189  181  174   183   167    727   704    +3.3%
EBITDA                  26   15   -2    20    18     59    57         
 EBITDA, %             13.  8.3    -   10.  10.8    8.1   8.1         
                         8       1.1     9
Operating result        -4   -1  -17     4     3    -18    -5         
 Operating result, %     -    -    -   2.2   1.8   -2.5  -0.7         
                       2.1  0.6  9.8
Non-recurring items    -15    0  -10     0     0    -25    -9         
Return on capital        -    -    -   2.2   1.6   -2.3  -0.5         
employed, %            1.9  0.2  9.0
Return on capital      6.0    -    -   2.2   1.6    1.0   0.6         
employed excluding          0.2  3.7
non-recurring items,
%
Deliveries, 1,000      264  258  251   266   242  1,039  1,03    +0.5%
tonnes                                                      4
Production, 1,000      253  259  252   264   258  1,028  1,03    -0.6%
tonnes                                                      4
EBITDA = Earnings before interest, taxation, depreciation and
amortization

2006 compared with 2005

The Office Papers business area reported an operating result of EUR 7
million excluding non-recurring items for 2006 (4). The operating
result including non-recurring items amounted to EUR -18 million (-
5). The most significant non-recurring items in 2006 were a EUR 15
million write-down on the Wifsta mill's fixed assets and Office
Papers’ EUR 10 million share of the provision for the efficiency
improvement programme at Alizay in the second quarter. The 2005
result included non-recurring expenses of EUR 9 million which were
mainly related to the efficiency improvement programme at the Swedish
mills.

The operating result was positively affected by an increase in the
average selling price and weakened by higher raw material costs.

Total deliveries by Western European uncoated fine paper producers
were up 3 per cent. The delivery volume of the Office Papers business
area was on par with 2005.

The fourth quarter compared with the previous quarter

The business area's operating result excluding non-recurring items
amounted to EUR 11 million in the fourth quarter (-1). The operating
result including non-recurring items totalled EUR -4 million (-1).
The above-mentioned EUR 15 million write-down on the Wifsta mill's
fixed assets was reported as a non-recurring item.

The operating result was positively affected by an increase in the
average selling price and lower fixed costs.

Total deliveries by Western European uncoated fine paper producers
were down 4 per cent. The delivery volume of the Office Papers
business area's products was up 2 per cent.

Map Merchant Group

                         IV   III    II    I    IV  2006  2005  2006/05
                         06    06    06   06    05               change
Sales                   377   342   354  365   357  1438  1390    +3.5%
EBITDA                    5     5     8    9     2    27    26         
 EBITDA, %              1.3   1.5   2.3  2.5   0.6   1.9   1.9         
Operating result        -59     3     7    7     0   -42    18         
 Operating result, %      -   0.9   2.0  1.9   0.0  -2.9   1.3         
                       15.6
Non-recurring items     -69     0     0    0    -4   -69    -4         
Return on capital         -   4.9   8.2  8.7   2.1     -   6.0         
employed, %            82.8                         14.2
Return on capital      14.0   4.9   8.2  8.7   7.1   8.6   7.2         
employed excluding
non-recurring items,
%
Deliveries, 1,000       367   347   354  363   347  1,43  1,35    +5.3%
tonnes                                                 1     9
EBITDA = Earnings before interest, taxation, depreciation and
amortization

2006 compared with 2005

The Map Merchants Group reported an operating result of EUR 27
million (22) excluding non-recurring items for 2006. Operating result
including non-recurring items totalled EUR -42 million (18). The
result includes EUR 69 million of non-recurring items, which consist
of a EUR 63 million impairment loss (EUR 49 million on goodwill and
EUR 14 million on other fixed assets) and a EUR 6 million provision
related to the cost savings programme. All non-recurring items were
booked in the fourth quarter of the year. The 2005 result includes
non-recurring expenses of EUR 4 million booked in the second quarter.

Profitability was positively affected by an increase in delivery
volumes and the improvement in selling prices towards the end of the
year.

The fourth quarter compared with the previous quarter

The business area's operating result excluding non-recurring items
amounted to EUR 10 million (3) in the fourth quarter. The operating
result including non-recurring items was EUR -59 million (3). The
operating result includes the above-mentioned non-recurring expenses.

Profitability was positively affected by increased delivery volumes
and higher selling prices.



M-REAL CORPORATION

Mikko Helander
CEO


M-REAL GROUP (all figures unaudited)

CONDENSED CONSOLIDATED INCOME STATEMENT

EUR million                  2006    2005   Change   IV 06
Continuing operations:                                    
Sales                       5 624   5 241      383   1 438
Other operating income        116     206      -90      18
Operating expenses         -5 441  -5 008     -433  -1 407
Depreciation and             -570    -403     -167    -295
impairment losses
Operating result             -271      36     -307    -246
% of sales                   -4.8     0.7            -17.1
Share of results in             0      -2        2       0
associated companies
Net exchange gains and          0     -33       33      -4
losses
Other financial income       -137    -115      -22     -41
and expenses, net
Result before taxes          -408    -114     -294    -291
% of sales                   -7.3    -2.2            -20.2
Income taxes                    9      34      -25      25
Result for the period        -399     -80     -319    -266
% of sales                   -7.1    -1.5            -18.5
Attributable to:                                          
Shareholders of parent       -396     -81     -315    -265
company
Minority interest              -3       1       -4      -1
Earnings per share for      -1.21   -0.25    -0.96   -0.81
result attributable to
the shareholders of
parent company, euros


CONDENSED CONSOLIDATED BALANCE SHEET

                     31.12.20     % 31.12.20    %
                           06            05
EUR million                                        
ASSETS                                             
Non-current assets                                 
Goodwill                  376   6.1     568     9.0
Other intangible           62   1.0      86     1.4
assets
Tangible assets         3 156  51.1   3 178    50.2
Biological assets          52   0.8      36     0.6
Shares in                 109   1.8     114     1.8
associated and
other companies
Interest bearing           34   0.6      46     0.7
receivables
Deferred tax               31   0.5      33     0.5
receivables
Other non-interest         18   0.3      23     0.3
bearing receivables
                        3 838  62.2   4 084    64.5
Current assets                               
Inventories               676  11.0     749    11.8
Receivables                                  
  Interest bearing        163   2.6     167     2.7
receivables
  Non-interest          1 210  19.6   1 215    19.2
bearing
Cash and cash             182   2.9     112     1.8
equivalents
                        2 231  36.1   2 243    35.5
Assets classified         103   1.7                
as held for sale
Total assets            6 172 100.0   6 327   100.0
                                                   
SHAREHOLDERS’                                      
EQUITY AND
LIABILITIES
Shareholders’                                      
equity
Equity attributable     1 843  29.9   2 271    35.9
to shareholders of
parent company
Minority interest          63   1.0      45     0.7
Total equity            1 906  30.9   2 316    36.6
Non-current                                  
liabilities
 Deferred tax             284   4.6     336     5.3
liabilities
 Post employment          199   3.2     211     3.3
benefit obligations
    Provisions             79   1.3      62     1.0
 Other non-interest        28   0.5      60     0.9
bearing liabilities
 Interest bearing       2 182  35.4   1 877    29.7
liabilities
                        2 772  45.0   2 546    40.2
Current liabilities                          
 Non-interest             865  14.0     813    12.9
bearing liabilities
 Interest bearing         599   9.7     652    10.3
liabilities
                        1 464  23.7   1 465    23.2
Liabilities                30   0.4                
classified as held
for sale
Total liabilities       4 266  69.1   4 011    63.4
Total shareholders’     6 172 100.0   6 327   100.0
equity and
liabilities

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

EUR million               2006    2005   IV 06
Cash flow from                                
Operating Activities
Result for the period     -399     -80    -266
  Adjustments to the       701     480     306
result, total
  Change in working         65     -82     139
capital
Cash flow arising from     367     318     179
Operations
Finance costs, net        -113    -136     -56
Income taxes paid          -32     -46      -8
Net cash flow arising      222     136     115
from Operating
Activities
Investments in            -428    -452    -123
intangible and
tangible assets
Asset sales and other       28     312      14
investing cash flow
Net cash flow arising     -400    -140    -109
from
Investing Activities
Minority’s share in         31      12       3
share issue
Changes in loans and       259    -100      78
in other financial
items
Dividends paid             -39     -39       0
Net cash flow arising      251    -127      81
from Financial
Activities
Changes in Cash and         73    -131      87
Cash Equivalents
Cash and Cash              112     242      96
Equivalents at
beginning of period
Translation                 -2       1       0
adjustments
Changes in Cash and         73    -131      87
Cash Equivalents
Assets held for sale        -1       0      -1
(carton plants)
Cash and Cash              182     112     182
Equivalents at end of
period


STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY

EUR million       Share   Share   Translat    Fair   Retai Minor Total
                  capit  premium     ion   value and  ned   ity
                    al     fund   differen   other   earni inter
                                     ces    reserves  ngs   est
Shareholders´equi   558       667        6         2 1 160    37  2 430
ty
January 1, 2005,
IFRS
Net expenses                                                           
recognised
directly in
equity
Translation                             -7                           -7
differences
Net investment                           7                            7
hedge, net of tax
Currency flow                                     -2                 -2
hedges recorded
in equity, net of
tax
Changes in                                                             
minority interest
during the period
  The sale of                                                 -3       
Forestia Oy
  The sale of                                                 -3       
Metsä-Botnia
shares (8%)
  Metsä-Botnia                                                14       
restructuring
in Uruguay
  Other change                                                -1       
  Total                                                        7      7
Result for the                                         -81     1    -80
period
Total recognised                         0        -2   -81     8    -75
income for the
period
Dividends paid                                         -39          -39
                                                                       
Shareholders´       558       667        6         0 1 040    45  2 316
equity December
31, 2005, IFRS
Net expenses                                                           
recognised
directly in
equity
  Translation                           -3                           -3
differences
  Net investment                                                       
hedge, net of tax
  Currency flow                                    2                  2
hedges
transferred to
income statement,
net of tax
  Recorded in                                     11                 11
equity, net of
tax
  Interest flow                                    3                  3
hedges recorded
in equity, net of
tax
  Commodity                                       -6                 -6
hedges recorded
in equity, net of
tax
Change in                                                              
minority interest
during the period
  Metsä-Botnia                                                22       
restructuring in
Uruguay
  Other changes                                                0      0
  Total                                                       22     22
Result for the                                        -396    -3   -399
period
Total recognised                        -3        10  -396    19   -370
income for the
period
Dividends paid                                         -39    -1    -40
Shareholders´       558       667        3        10   605    63  1 906
equity December
31, 2006, IFRS


KEY RATIOS                 2006     2005   IV 06
Sales, EUR million        5 624    5 241   1 438
Operating result, EUR      -271       36    -246
million
excl. non-recurring          45        4      14
items
Result before taxes, EUR   -408     -114    -291
million
excl. non-recurring         -92     -142     -31
items
Result for the period,     -399      -80    -266
EUR Million
Earnings per share, EUR   -1.21    -0.25   -0.81
  excl. non-recurring     -0.27    -0.35   -0.04
items, EUR
  From continuing         -1.21    -0.25   -0.81
operations, EUR
  From discontinued        0.00     0.00    0.00
operations, EUR
Return on equity, %       -18.9     -3.4   -52.2
  excl. non-recurring      -4.4     -4.8    -2.6
items, %
Return on capital          -5.2      1.2   -20.3
employed, %
  excl. non-recurring       1.4      0.5     1.5
items, %
Equity ratio, %            30.9     36.6    30.9
Gearing ratio, %            126       95     126
Shareholders´ equity per   5.62     6.92    5.62
share, EUR
Interest-bearing net      2 403    2 205   2 403
liabilities, EUR million
Gross capital               428      452     123
expenditure, EUR million
Personnel at the end of  14 125   15 154  14 125
the period


SECURITIES AND GUARANTEES

EUR million                             
                          12/06    12/05
For own loans                77      108
For associated                1        1
companies
For affiliated                5        5
companies
For others                    3       10
Total                        86      124
                                        
OPEN DERIVATIVE           12/06    12/05
CONTRACTS,
EUR million
Interest rate             2 828    7 416
derivatives
Currency derivatives      4 747    5 364
Other derivatives           152       54
Total                     7 727   12 834

The fair value of open derivative contracts calculated at market
value at the end of the review period was EUR  -8.3 million (EUR  -
37.3 million Dec 31, 2005).

Also include other closed contracts to a total amount of EUR 3 664.0
million (EUR 8 164.8 million Dec 31, 2005).


Quarterly information

SALES BY SEGMENTS     2006  2005     IV   III     II  I 06   IV     III
EUR million                          06    06     06         05      05
Consumer Packaging     971   864    241   236    237   257   231    196
Publishing             887   796    220   226    216   225   230    181
Commercial Printing   1504  1488    369   361    380   394   376    381
Office Papers          727   704    189   181    174   183   167    174
Map Merchant Group    1438  1390    377   342    354   365   357    341
Internal sales and      97    -1     42    21           17     8     -4
other operations                                  17
Group total           5624  5241   1438  1367   1378  1441  1369   1269

OPERATING RESULT BY  2006   2005  IV 06   III    II   I 06    IV   III
SEGMENTS EUR                               06    06           05    05
million
Consumer Packaging     43     41      0    17     2     24    16    14
Publishing             30     14      3    14     2     11    13    14
Commercial Printing  -242    -62   -179   -10   -51     -2   -41     0
Office Papers         -18     -5     -4    -1   -17      4     3    -3
Map Merchant Group    -42     18    -59     3     7      7     0     5
Other operations      -42     30     -7    -8   -18     -9   -18   -10
Operating result     -271     36   -246    15   -75     35   -27    20
  % of sales         -4.8    0.7  -17.1   1.1  -5.4    2.4  -2.0   1.6
Share of result in      0     -2      0     1     0     -1     2     0
associated
companies
Net exchange gains      0    -33     -4    -1    -3      8    -7     0
and losses
Other financial      -137   -115    -41   -37   -33    -26   -17   -19
income and
expenses, net
Result on            -408   -114   -291   -22  -111     16   -49     1
continuing
operations before
tax
Income tax              9     34     25   -11     8    -13    11     2
Result on            -399    -80   -266   -33  -103      3   -38     3
continuing
operations
Result on               0      0      0     0     0      0     0     0
discontinued
operations
Result for the       -399    -80   -266   -33  -103      3   -38     3
period
Minority interest       3     -1      1     2     1     -1     2    -1
Profit/loss          -396    -81   -265   -31  -102      2   -36     2
attributable to
shareholders of
parent company
Earnings per share,     -      -  -0.81     -     -   0.01     -  0.01
EUR                  1.21   0.25         0.10  0.31         0.12


NON-RECURRING ITEMS   2006  2005     IV    III   II   I 06    IV    III
                                     06     06   06           05     05
Consumer Packaging       -4     0    -4      0    0      0     0      0
Publishing                0    -2     0      0    0      0     0      0
Commercial Printing    -216   -29  -173     -2  -41      0   -29      0
Office Papers           -25    -9   -15      0  -10      0     0      0
Map Merchant Group      -69    -4   -69      0    0      0    -4      0
Other operations         -2    76     1      0   -3      0    -5      0
Non-recurring items    -316    32  -260     -2  -54      0   -38      0
in operations, total
                          0    -4     0      0           0     0      0
Non-recurring                                     0
financial items
Non-recurring items.   -316    28  -260     -2  -54      0   -38      0
total
                                                                       
Operating result         45     4    14     17  -21     35    11     20
excl. non-recurring
items
  % of sales           -0.8   0.1   1.0    1.2 -1.5    2.4   0.8    1.6
Result before taxes,    -92  -142   -31    -20  -57     16   -11      1
excl. non-recurring
items
  % of sales           -1.6  -2.7  -2.2   -1.5 -4.1    1.1  -0.8    0.1
Earnings per share,   -0.27     -     -      -    -   0.01     -   0.01
excl. non-recurring          0.35  0.04   0.08 0.16         0.01
items
Return on equity,      -4.4  -4.8  -2.6   -5.8 -9.1    0.5  -0.5    0.4
excl. non-recurring
items
Return on capital,      1.4   0.5   1.5    2.0 -1.2    3.4   1.4    2.3
excl. non-recurring
items


RETURN ON CAPITAL  2006   2005  IV 06 III 06 II 06  I 06  IV 05   III
EMPLOYED, %                                                        05
Consumer            5.1    4.8    0.3    7.5   1.3  10.9    7.8   6.7
Packaging
Publishing          3.0    1.3    1.4    5.3   0.9   4.1    4.8   5.6
Commercial        -21.7   -4.9  -63.3   -3.2 -16.2  -0.5  -13.7   0.0
Printing
Office Papers      -2.3   -0.5   -1.9   -0.2  -9.0   2.2    1.6  -1.1
Map Merchant      -14.2    6.0  -82.8    4.9   8.2   8.7    2.1   4.5
Group
GROUP TOTAL        -5.2    1.2  -20.3    1.8  -5.6   3.4   -1.8   2.3

CAPITAL EMPLOYED  12/06   09/06  06/06   03/06  12/05    9/05    6/05
EUR million
Consumer            883     914    907     917    878     857     835
Packaging
Publishing        1 069   1 091  1 094   1 124  1 094   1 077   1 056
Commercial        1 040   1 208  1 243   1 273  1 178   1 204   1 225
Printing
Office Papers       722     742    746     754    762     764     780
Map Merchant        258     313    318     323    324     315     308
Group
Other assets        722     609    578     514    610     506     479
GROUP TOTAL       4 694   4 877  4 886   4 904  4 846   4 723   4 683

Segment’s capital employed includes segments’ assets (=goodwill,
other intangible assets, tangible assets, biological assets,
investments in associated companies, inventories and accounts
receivables, prepayment and accrued income (excluding interest and
tax items)) deducted by segments’ liabilities (= accounts payable,
advances received and accruals and deferred income (excluding
interest and tax items)).


PERSONNEL             2006    2005
Average
Consumer Packaging   2 573   2 667
Publishing           1 437   1 486
Commercial           4 425   4 816
Printing
Office Papers        1 822   1 948
Map Merchant Group   2 841   2 515
Other operations     2 146   2 146
GROUP TOTAL         14 884  15 578


DELIVERIES                                                        
1000 tons            2006  2005 IV 06   III II 06 I 06 IV 05   III
                                         06                     05
Consumer Packaging  1 161 1 006   288   285   284  304   268   226
Publishing          1 258 1 146   313   320   307  318   326   257
Commercial Printing 1 895 1 866   464   453   481  497   469   480
Office Papers       1 039 1 034   264   258   251  266   242   254
Paper businesses    4 192 4 046 1 041 1 031 1 040 1 080 1 037   991
total
Map Merchant Group   1431  1359   367   347   354  363   347   337

PRODUCTION                                                        
1000 tons            2006  2005 IV 06   III II 06 I 06 IV 05   III
                                         06                     05
Consumer Packaging  1 121   985   279   273   270  299   272   292
Publishing          1 167 1 072   283   307   270  307   315   294
Commercial Printing 1 923 1 880   464   456   494  509   476   482
Office Papers       1 028 1 034   253   259   252  264   258   260
Paper mills total   4 119 3 985 1 000 1 023 1 016 1 079 1 048 1 036
Metsä-Botnia’s pulp   983   901   255   243   234  251   252   234
1)
M-real’s pulp       1 754 1 533   449   443   422  440   421   379

1) Equals to M-real’s ownership in Metsä-Botnia (39 per cent
beginning from II 2005, 47 per cent before that).

Pont Sainte Maxence is included in Commercial Printing´s figures in
all tables until II 2006.




M-REAL CORPORATION

Mikko Helander
CEO


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