INTERIM REPORT JANUARY - JUNE 2003

* Turnover Jan. - Jun. SEK 1 222 m 1,301)

Apr. - Jun. SEK 582 m (646)

* Income after financial items Jan. - Jun. SEK 38 m (10)

Apr. - Jun. SEK 23 m (6)

* Earnings per share after net Jan. - Jun. SEK 0.21 (0.05) financial items Apr. - Jun. SEK 0.12 (0.03)

* Profit after tax Jan. - Jun. SEK 26 m (4)

Apr. - Jun. SEK 18 m (3)

* Earnings per share after tax Jan. - Jun. SEK 0.14 (0.02)

Apr. - Jun. SEK 0.10 (0.02)

* Cash flow per share Jan. - Jun. SEK -0.13 (-0.16)

Apr. - Jun. SEK 0.02 (-0.08)

* Shareholders’ equity per share SEK 9.18 (31.12.2002: 9.33)

* Equity/assets ratio 72 % (31.12.2002: 72 %)

* 2003 was initially characterized by increasing pulp prices. Subsequent to the first quarter the demand has declined with slowly falling prices.

The market situation is difficult to judge, however the earlier forecast with a better result for the full year 2003 than for 2002 remains, but the uncertainty has increased.

ROTTNEROS IN BRIEF

Rottneros, with its origins in the 1600s, is an independent and flexible supplier of customised, high-quality paper pulp. Through continuous product development, high delivery reliability, technical support and service, Rottneros is able to adapt to satisfy its demanding customers.

Rottneros has a total production capacity of more than 700,000 tonnes of market pulp per year produced at five mills in Sweden and Spain, making the Group one of the ten biggest suppliers of market pulp in the world. Increasingly intensive product development in accordance with customers’ demands should lead to more stable and higher profitability throughout an economic cycle. The Group has a financial hedging policy to even out earnings over the economic cycle.