THE RETURN OF ROTTNEROS IS AFFLICTED BY HIGH COSTS ON RAW MATERIAL

The Rottneros Group’s loss for the first nine months of 2007 is estimated to amount to approximately SEK -60 million, which is weaker than corresponding period last year when the loss after financial income and expenses amounted to SEK -44 million. The return is affected by con-tinued high costs on raw material and a weakened US dollar.

The result for the third quarter is afflicted by costs of yearly common maintenance shutdowns at the mills in Rottneros and Vallvik and in addition a restructuring reserve which is the result of decided staff reductions at Rottneros Bruk.

The return for the period will be made public in its full October 25th at 08:00am.

The company refrains from giving an annual forecast for 2007.

For more information please contact: Lars Blecko, CEO, telephone +46 8 590 010 00

The press release is distributed October 19th 2007 at 08.00am

Rottneros is one of the world’s leading independent producers of market pulp. The Group consists of the parent company, Rottneros AB, which is listed on the OMX Nordic Exchange in Stockholm, along with its subsidiaries Rottneros Bruk AB, Rockhammars Bruk AB, Utansjö Bruk AB and Vallviks Bruk AB in Sweden as well as Rottneros Miranda, S.A. in Spain, with activities involving production and sales of market pulp; the Group also includes the raw materials purchasing companies Rottneros Baltic SIA in Latvia and Rottneros Madeira in Portugal, as well as the sales company Rottneros S.A. in Belgium. The Group has established a new business area, Rottneros Packaging, for production of pulp-based packaging materials for food use. With approximately 750 employees, the Group has a turnover of approximately SEK 2.7 billion.