Six-month environmental performance review shows that Fray Bentos mill performs to standards required

On July 10, 2008, IFC (International Finance Corporation) publicly released the
first environmental monitoring report for Botnia's Fray Bentos pulp mill in
Uruguay since the mill began operating in November 2007. 

The assessment of operating performance was prepared by EcoMetrix Incorporated,
an independent environmental consulting firm. The report finds that the mill is
performing to the air and water quality standards projected in the Cumulative
Impact Study and Environmental Impact Assessment, as required by IFC, and well
within the limits established by the environmental permits issued by the
Uruguayan regulator, DINAMA. 

This first six-month report, and the two annual reports that will follow at the
end of 2008 and 2009, are required under provisions of the Environmental and
Social Action Plan agreed between Botnia and IFC as a condition for IFC's
financing of the mill. 

The Ecometrix report is attached.