Negotiations to reduce personnel by 220 finalised in Speciality Papers business area

M-real Corporation Stock Exchange Release on 21 May 2010 at 15

Negotiations to reduce personnel by 220 finalised in Speciality Papers business
area 
 
M-real Corporation, part of Metsäliitto Group, announced on 9 December 2009
plans to improve Speciality Papers business area's profitability. The main
measures were stated to be the planned closures of two speciality paper
machines in Reflex mill and the streamlining of the organizations in both
Gohrsmühle and Reflex mills. 

Negotiations to implement the planned measures started in January 2010.
Negotiations have now been finalised resulting in a reduction of 220 jobs at
the Gohrsmühle and Reflex mills. This represents an about 20 percent reduction
of the total workforce. The implementation of personnel reduction is ongoing
and it will be finalised by the end of 2010. 

Annual production capacity of the Reflex mill will reduce by approximately 80
000 tonnes. The production of carbonless base papers will move to Gohrsmühle
mill and the converting as well as the finishing remains in the Reflex mill.
The Reflex mill will continue the production of premium fine and digital
imaging papers. Product offering and supply capability of M-real Zanders will
remain unchanged. 

In the future, the Reflex mill will be developed based on a paper park concept.
The target is to find industrial partnerships with other producers and thus
create new jobs at the mill site. In Gohrsmühle the share of speciality papers
of the total product portfolio will continue to increase. 

Speciality Papers business area's operating result in the second quarter of
2010 will due to the above mentioned measures include approximately EUR 16
million non-recurring cost provisions. The expected annual profit improvement
of these measures is approximately EUR 18 million fully from 2011 onwards. 

For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10
465 4335