Stora Enso announces the successful comp

STORA ENSO OYJ Stock Exhange Release 18 June 2004 at 17.20

Stora Enso announces the successful completion of its Exchange 
Offer for its 6.375% Notes due June 2007

This Announcement is made as a matter of record only and should 
be read in conjunction with the Exchange Offer Memorandum dated 
4 June 2004 (the "Exchange Offer Memorandum") which has been 
prepared by Stora Enso Oyj ("Stora Enso" or the "Company") in 
relation to the Exchange Offer. 

On 4 June 2004, Stora Enso announced the launch of an Exchange 
Offer for its 6.375% Euro Medium Term Notes maturing 29 June 
2007 (the "Existing Notes").  The Exchange Offer closed on 17 
June 2004.  Under the terms of the Exchange Offer, all holders 
(subject to offer restrictions as set out in the Exchange Offer 
Memorandum) of the Existing Notes were invited to offer to 
exchange any or all of their holdings into new euro denominated 
Fixed Rate Notes maturing June 2014 (the "New Notes").

Minimum Exchange Condition

Following receipt by the Exchange Agent of valid Electronic 
Acceptance Notices totalling EUR 475 375 000 in aggregate 
principal amount of Existing Notes, Stora Enso is pleased to 
announce that the Minimum Exchange Condition has been met.  All 
Electronic Acceptance Notices validly submitted before 15.00 
hours CET on the Expiration Date (i.e. 17 June 2004) will be 
accepted in full. Due to the targeted new issue size of EUR 
500 000 000 having been met, no additional notes will be issued.

A full press release from the Company will follow.


Exchange Price.  The 2007 Benchmark Rate (the mid-market yield 
of the BUND 6% due 4 July 2007 - ISIN: DE0001135036) was 3.154% 
at 15.00 hours CET on Friday 18 June 2004.  Based on the 
Exchange Spread of 26 bps over the 2007 Benchmark Rate, the 
Exchange Price will be 108.351% of EUR 1 000 principal amount of 
Existing Notes.

New Issue Price.  The 10 Year Mid-Swap Rate (the mid-market 
arithmetic mean of the bid and offered swap rates for euro swap 
transactions with a maturity of 10 years) was 4.448% at 15.00 
hours CET on Friday 18 June 2004.  Based on the New Issue Spread 
of 74 bps over the 10 Year Mid-Swap Rate, the yield of the New 
Notes will be 5.188%.  This equates to a New Issue Coupon of 
5.125% and a New Issue Price of 99.518% of EUR 1 000 principal 
amount of New Notes.

Exchange Ratio.  By dividing the Exchange Price by the New Issue 
Price we derive an Exchange Ratio of 1:1.0888.  Accordingly, New 
Notes will be issued at a ratio of 1.0888 per Existing Note 
validly submitted into the Exchange Offer.  This generates an 
aggregate principal amount of New Notes of EUR 517 555 000.


The Settlement Date is expected to be Wednesday 23 June 2004, on 
which date the New Notes will be delivered to the holders of 
Existing Notes who have validly accepted the Exchange Offer, in 
accordance with the terms and conditions of the Exchange Offer.

For more information about the Stora Enso Exchange Offer, please 

Dealer Managers
J.P. Morgan Securities Ltd.
  Paul Hawker, Liability Management, tel. +4420 7777 4185
  Robin Stoole, Syndicate Desk, tel. +4420 7779 2468

Merrill Lynch International
  Asar Mashkoor, Liability Management, tel. +4420 7995 3715
  Jeff Tannenbaum, Syndicate Desk, tel. +4420 7995 3966

Exchange Agent
JPMorgan Chase Bank
  Karen Sheridan, tel. +4420 7777 5908 
  Ed Leedham, tel.  +4420 7777 9458

Contact persons at Stora Enso:
Peter Nordquist, Vice President, Funding, tel. +4420 7016 3266
Hannu Kasurinen, Senior Vice President, Group Treasurer, tel. 
+4420 7016 3250


Jyrki Kurkinen   Ulla Paajanen-Sainio