INTERIM REPORT JANUARY – SEPTEMBER 2005

Amounts in SEK million unless per share

* Sales Jan–Sep 1,822 (1,821)

Jul–Sep 641 (583)

* Income after net financial items Jan–Sep -82 (-56)

Jul–Sep -65 (-107)

* Earnings per share after net financial items Jan–Sep -0.46 (-0.31)

Jul–Sep -0.36 (-0.60)

* Profit/loss after tax Jan–Sep -59 (-42)

Jul–Sep -45 (-74)

* Earnings per share after tax Jan–Sep -0.33 (-0.23)

Jul–Sep -0.25 (-0.41)

* Cash flow per share Jan–Sep -2.03 (-0.51)

Jul–Sep -0.78 (-0.25)

* Shareholders’ equity per share 8.47 9.28 (31.12.04)

* Equity/assets ratio 59% 65% (31.12.04)

* The market for pulp during the third quarter was characterized by normal demand with a weakening price for bleached longfibre pulp. The company however had expected an increase in prices during the second half this year but this has not materialized during the third quarter.

* The result during January to September was negatively effected by 55 MSEK due to the closure of the magnefite line at Utansjö and the start-up and fine-tuning of the new CTMP line.

* Earnings for the third quarter 2005 amounted to a loss after financial items of 65 MSEK. The third quarter has carried costs amounting to 35 MSEK for planned maintenance stops at Vallvik, Rottneros and Utansjö.

* As announced on 14 October this year, the company expects a substantially weaker result than was previously estimated for the full-year 2005. The loss is expected to be less than the loss in 2004, which was SEK 108 million (excluding IFRS effects) and which included substantial non-recurring items.

(For complete interim report see attached file)