Stora Enso Interim Review January ? September 2005

STORA ENSO OYJ Stock Exchange Release 27 October at 10.00

Stora Enso Interim Review January – September 2005 
Profitability still low; initiatives to strengthen financial performance
introduced

Third Quarter Results (compared with previous quarter) Stora Enso's 
earnings per share were EUR 0.08 (EUR 0.00) excluding nonrecurring 
items. Operating profit excluding non-recurring items was EUR 106.2
(EUR 17.7) million. Profit before tax amounted to EUR 93.0 (EUR 0.1)
million excluding non-recurring items. There were no non-recurring 
items in the third quarter.

Sales at EUR 3 219.2 million were 1.0% or EUR 31.9 million higher
than the previous quarter's EUR 3 187.3 million. Cash flow from
ongoing operations was EUR 351.2 (EUR 387.9) million and cash flow
after investing activities excluding acquisitions EUR 94.9 (EUR
130.6) million. Cash earnings per share were EUR 0.44 (EUR 0.35)
excluding non-recurring items. Net financial items were EUR -25.0
(EUR -34.6) million.

                                      Q1–Q3/   Q1–Q3/
EUR million          2003      2004       04       05    Q3/04    Q2/05    Q3/05

Sales            12 172.3  12 395.8  9 153.9  9 551.4  3 033.1  3 187.3  3 219.2
EBITDA 1)2)       1 707.7   1 510.9  1 179.7  1 075.8    425.8    298.4    388.6
Operating
profit 2)           522.9     338.9    297.5    236.6    139.1     17.7    106.2
Non-recurring
items               -54.4     369.7    189.8    -12.0     74.1    -12.0        -
Operating
margin 2), %          4.3       2.7      3.2      2.5      4.6      0.6      3.3
Operating
profit              468.5     708.6    487.3    224.6    213.2      5.7    106.2
Profit before tax and minority 
interests 2)        316.3     271.8    248.6    176.7    122.3      0.1     93.0
Profit before tax and minority
interests           207.8     641.5    438.4    164.7    196.4    -11.9     93.0
Net profit for 
the period          136.0     740.8    591.7    114.9    136.1    -10.1     66.4
   
EPS 2), Basic, EUR   0.24      0.26     0.23     0.15     0.11     0.00     0.08
EPS, Basic, EUR      0.16      0.89     0.71     0.14     0.16    -0.01     0.08
CEPS 2)3), EUR       1.63      1.67     1.29     1.20     0.46     0.35     0.44
ROCE 2), %            4.5       3.0      3.5      2.8      5.1      0.6      3.7

1) EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation
2) Excluding net non-recurring items. Exceptional transactions that are not 
   related to normal business operations are accounted for as non-recurring items.
   The most common non-recurring items are capital gains, additional write-downs,
   restructuring provisions and penalties. Non-recurring items are normally 
   specified individually if they exceed one cent per share.
3) CEPS = (Net profit for the period + depreciation and amortisation)/average 
   number of shares


Short-term Outlook

Commenting on the outlook, Stora Enso's CEO Jukka Härmälä said, "In
Europe demand for advertising-driven paper grades is expected to
improve, thereby increasing demand for publication papers. Prices
should remain stable in these grades for the rest of the year, but
are expected to improve early next year. Seasonal strengthening in
demand for fine paper is anticipated leading to moderate price rises
in uncoated fine paper; further increases are expected in the
beginning of next year. Packaging board demand should be stable,
allowing prices for some grades to increase. Markets for wood
products are likely to remain balanced with stable prices."

In North America magazine paper demand is expected to remain firm,
but demand for newsprint is weakening. Price increases have been
announced for publication paper grades. A seasonal rise in demand
for coated fine paper should result in some price increases.

In Asia fine paper demand is predicted to be rather sluggish and
further price erosion is anticipated.

Operating profit excluding non-recurring items is expected to be
higher in the fourth quarter than the third quarter despite higher
maintenance costs. Following the new Finnish labour agreement,
capacity can be utilised during the whole year, allowing maintenance
stoppages to be optimised.

The Group has estimated that the provisions and write-downs in the
fourth quarter of 2005 related to the anticipated closures may be
approximately EUR 300 million of which about EUR 50 million would
have a cash impact. A release of EUR 30 million of net working
capital of is also expected.


For further information, please contact:
Jukka Härmälä, Chief Executive Officer, tel. +358 2046 21404 
Hannu Ryöppönen, CFO, tel. +44 20 7016 3114
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659


Stora Enso Interim Review January – September 2005

Summary of Third Quarter Results (compared with previous quarter)

* Sales were EUR 3 219.2 (EUR 3 187.3) million.
* Operating profit was EUR 106.2 (EUR 17.7) million excluding
  non-recurring items, still negatively impacted by the Finnish 
  labour dispute.
* Profit before tax was EUR 93.0 (EUR 0.1) million excluding
  non-recurring items.
* Earnings per share were EUR 0.08 (EUR 0.00) excluding non-
  recurring items.
* Cash earnings per share were EUR 0.44 (EUR 0.35) excluding
  non-recurring items.

In Europe deliveries were still affected by the Finnish labour
dispute at the beginning of the quarter as production started up 
and the Group replenished its inventories. Exports from Europe 
recovered from the previous quarter. Paper and board prices were 
generally stable. Deliveries of wood products decreased, but prices 
were unchanged.

In North America demand for uncoated magazine paper and coated fine
paper increased while demand for newsprint and coated magazine paper
decreased but remained good. Some price increases were achieved in
publication paper grades.

Paper and board deliveries totalled 3 435 000 tonnes, which is 46 000 
tonnes more than the previous quarter's 3 389 000 tonnes. Production 
increased by 754 000 tonnes from the previous quarter's 3 018 000 tonnes
to 3 772 000 tonnes. Deliveries of wood products totalled 1 639 000 cubic 
metres, which was 216 000 cubic metres less than the previous quarter's 
1 855 000 cubic metres.

Inventories increased as the Group's logistic pipeline refilled
following the Finnish labour dispute, but they are still below
average for the time of year.

                                      Q1–Q3/   Q1–Q3/
EUR million          2003      2004     2004     2005    Q3/04    Q2/05    Q3/05

Sales            12 172.3  12 395.8  9 153.9  9 551.4  3 033.1  3 187.3  3 219.2
EBITDA 1)2)       1 707.7   1 510.9  1 179.7  1 075.8    425.8    298.4    388.6
Operating profit 2) 522.9     338.9    297.5    236.6    139.1     17.7    106.2
Non-recurring items -54.4     369.7    189.8    -12.0     74.1    -12.0        -
Operating 
margin 2), %          4.3       2.7      3.2      2.5      4.6      0.6      3.3
Operating profit    468.5     708.6    487.3    224.6    213.2      5.7    106.2
Profit before tax and minority 
interests 2)        316.3     271.8    248.6    176.7    122.3      0.1     93.0
Profit before tax and minority
interests           207.8     641.5    438.4    164.7    196.4    -11.9     93.0
Net profit for 
the period          136.0     740.8    591.7    114.9    136.1    -10.1     66.4
   
EPS2), Basic, EUR    0.24      0.26     0.23     0.15     0.11     0.00     0.08
EPS, Basic, EUR      0.16      0.89     0.71     0.14     0.16    -0.01     0.08
CEPS2)3), EUR        1.63      1.67     1.29     1.20     0.46     0.35     0.44
ROCE2), %             4.5       3.0      3.5      2.8      5.1      0.6      3.7

1) EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation
2) Excluding net non-recurring items. Exceptional transactions that are not 
   related to normal business operations are accounted for as non-recurring 
   items. The most common non-recurring items are capital gains, additional 
   write-downs, restructuring provisions and penalties. Non-recurring items 
   are normally specified individually if they exceed one cent per share.
3) CEPS = (Net profit for the period + depreciation and amortisation)/average 
   number of shares


Third Quarter Results (compared with previous quarter)

Sales at EUR 3 219.2 million were 1.0% or EUR 31.9 million higher
than the previous quarter's EUR 3 187.3 million. The consolidation
of the German paper merchant Schneidersöhne Group from 2 September
2005 increased sales by EUR 99.5 million. Higher volumes in all
paper grades and in Packaging Boards were partly offset by lower
deliveries in Wood Products.

Operating profit excluding non-recurring items was EUR 106.2 (EUR 17.7) 
million and increased in all segments. The main reason for the increase 
in profitability was the ending of the labour dispute at the Finnish mills
on 4 July, although it still had an impact of approximately EUR 40 million 
in the third quarter.

Investment and maintenance stoppages decreased the third quarter
operating profit by some EUR 20 million. Following the new Finnish
labour agreement, maintenance expenditure is being spread throughout
the year. Maintenance could not be undertaken in the second quarter
because of the Finnish labour dispute. Annual maintenance for 2005
is therefore being undertaken during the second half of the year.

Operating profit includes a negative non-cash effect of EUR 10.2
million due to valuation of share-based compensation. The fair
valuation of net assets related to the acquisition of Schneidersöhne
Group led to a EUR 2.3 million increase in depreciation and a EUR 2.7 
million lower contribution from fair valued inventory.

Profit before tax amounted to EUR 93.0 (EUR 0.1) million excluding
nonrecurring items.

Net financial items were EUR -25.0 (EUR -34.6) million. Net interest
amounted to EUR -43.8 (EUR -40.2) million and net foreign exchange
losses were EUR 3.7 (gains EUR 11.2) million. Other financial items
totalled EUR 22.5 (EUR -5.6) million, mainly related to unrealised
changes in fair values of financial instruments, partly related to
the option programmes. The share of associated company results
amounted to EUR 11.8 (EUR 17.0) million.

Net taxes totalled EUR -26.5 (EUR 3.3) million, leaving a net profit
for the quarter of EUR 66.5 million (EUR 8.6 million loss). The
profit attributable to minority shareholders was EUR 0.1 (EUR 1.5)
million, leaving a profit of EUR 66.4 million attributable to
Company shareholders.

Earnings per share were EUR 0.08 (EUR 0.00) excluding non-recurring
items.

The return on capital employed was 3.7% (0.6%) excluding non-
recurring items. Capital employed was EUR 11 739.8 million on 
30 September 2005, a net increase of EUR 466.8 million.


Capital Structure
EUR million                   31 Dec 2004  30 Sep 2004  30 Jun 2005  30 Sep 2005

Fixed assets                     10 848.2     11 056.8     11 146.3     11 621.1
Working capital                   1 301.3      1 201.4      1 497.3      1 635.2
Operating Capital                12 149.5     12 258.2     12 643.6     13 256.3

Net tax liabilities              -1 493.8     -1 426.8     -1 370.6     -1 516.5
Capital Employed                 10 655.7     10 831.4     11 273.0     11 739.8

Associated companies                568.1        558.5        644.1        687.9
Total                            11 223.8     11 389.9     11 917.1     12 427.7
   
Shareholders’ equity              8 036.3      7 980.1      7 483.3      7 631.3
Minority interests                  136.1         67.0         94.1         97.6
Interest-bearing net
liabilities                       3 051.4      3 342.8      4 339.7      4 698.8
Financing Total                  11 223.8     11 389.9     11 917.1     12 427.7

Financing
Cash flow from ongoing operations was EUR 351.2 (EUR 387.9) million and cash 
flow after investing activities excluding acquisitions EUR 94.9 (EUR 130.6) 
million. Cash earnings per share were EUR 0.44 (EUR 0.35) excluding non-
recurring items.

At the end of the period, interest-bearing net liabilities were EUR 4 698.8 
million, an increase of EUR 359.1 million mainly resulting from the acquisition
of Schneidersöhne. Unutilised credit facilities and cash and cash-equivalent 
reserves totalled EUR 2.1 billion.

Shareholders' equity amounted to EUR 7.6 billion or EUR 9.67 (EUR 9.46) per 
share, compared with the market capitalisation on the Helsinki Stock Exchange 
on  30 September 2005 of EUR 9.3 billion.

The debt/equity ratio at 30 September 2005 was 0.62 (0.58). The currency effect 
on equity was EUR 55.0 million net of the hedging of equity translation risks. 
Share buy-backs decreased equity by EUR 20.7 (EUR 209.0) million in the third 
quarter.


Quarterly Change in Interest-bearing Net Liabilities
                               Cash Flow            OCI* and   Transla-
                                 Ongoing               Other       tion   Balance
                                    Ope-  Acquisi-  Non-Cash     Diffe-     Sheet
EUR million                      rations     tions     Items      rence    Impact

Operating profit                   124.2      -5.0     -13.0               106.2
Depreciation                       282.4                                   282.4
Change in working capital          -55.4     -81.1       7.7      -9.1    -137.9
Cash Flow from Operations          351.2     -86.1      -5.3      -9.1     250.7

Investments                       -256.3    -459.3                        -715.6
Other changes in fixed assets                            4.7     -63.0     -58.3
Operating cash flow                 94.9    -545.4      -0.6     -72.1    -523.2

Net financing items                -25.0                 0.0               -25.0
Share of result of associated
 companies                          11.8                -4.1     -19.5     -11.8
Taxes paid                         -17.2     116.1       9.6       7.6     116.1
Repurchase of own shares           -20.7                                   -20.7
Other change in shareholders’
 equity and minority interests       1.6      -7.4      54.7      56.6     105.5
Change in Interest-bearing
Net Liabilities                     45.4    -436.7      59.6     -27.4    -359.1

*OCI = Other Comprehensive Income


Capital Expenditure

Capital expenditure for the third quarter totalled EUR 256.3 million, giving a 
total for the first nine months of EUR 865.9 million.

The main on-going projects during the first nine months were the new
paper machine 12 at Kvarnsveden Mill (EUR 300.1 million), the
Skoghall Energy 2005 project (EUR 68.0 million) and rebuilding paper
machine 5 at Corbehem Mill (EUR 37.6 million). Capital expenditure
in 2005 is expected to be in line with depreciation.


January – September 2005 Results (compared with the same period in 2004)

Sales at EUR 9 551.4 million were 4.3% higher than in the same
period in 2004 mainly due to higher prices, which were partially
offset by lower deliveries.

Operating profit excluding non-recurring items decreased by EUR 60.9 million 
to EUR 236.6 million, mainly due to the labour dispute in Finland.

Profit before tax excluding non-recurring items decreased by EUR 71.9 million
to EUR 176.7 million, and earnings per share excluding non-recurring items 
by EUR 0.08 to EUR 0.15.

Non-recurring items totalled EUR -12.0 million in the first nine
months of 2005 and EUR 189.8 million in the same period last year.


Inspections by Competition Authorities

There have been no new material developments concerning the
inspections. In May 2004 Stora Enso was the subject of inspections
carried out by the European Commission and the Finnish Competition
Authority at locations in Europe and received subpoenas issued by
the US Department of Justice as part of preliminary anti-trust
investigations into the paper industry in Europe and the USA. The
investigations by the authorities in both Europe and the USA are at
a fact-finding stage only and no formal allegations have been made
against the Group or any of its employees. Coincident with these
investigations, Stora Enso has been named in a number of class
action lawsuits filed in the USA. No provision has been made.


Third Quarter Events 2005

Joint venture in China

In August Stora Enso signed a letter of intent to start a joint
venture with Chinese board producer Foshan Huaxin Packaging Co.
Ltd. The final agreement establishing the joint-venture, in which
Stora Enso will have a clear majority shareholding, is expected to
be signed during the fourth quarter of 2005. Foshan Huaxin Packaging
is building a white lined chipboard (WLC) machine. Through the joint
venture company, Stora Enso plans to change the scope of the
investment by modifying the machine to manufacture primary-fibre-based 
products such as liquid packaging boards, cupstock, cigarette boards 
and other cartonboards.


Divestment of ownership in Advance Agro

Also in August Stora Enso signed an agreement to divest its 18.8%
ownership of Advance Agro Public Company Limited of Thailand to
private investors based in Hong Kong.


Possible divestment of Grycksbo Mill

In August Stora Enso commenced investigations into the feasibility
of divesting its fine paper mill at Grycksbo in Sweden.


Acquisition of Schneidersöhne completed

Stora Enso finalised its previously announced acquisition of the
German paper merchant Schneidersöhne Group. The figures were
consolidated from 2 September 2005.


Land purchases in Latin America

In September Stora Enso announced that it had started to purchase
land in the southern part of Brazil and in Uruguay with the
intention of establishing plantations. The plantations will serve as
a competitive fibre supply for Stora Enso's possible future pulp and
paper production in these countries. Stora Enso plans to establish a
total base of around 100 000 hectares of plantations at each
location.


Share Capital and Ownership

During the quarter a total of 446 955 A shares were converted into 
R shares. The latest conversion during the quarter was recorded in the
Finnish Trade Register on 15 August 2005.

On 30 September 2005 Stora Enso had 178 171 841 A shares and
634 805 258 R shares in issue, of which the Company held 38 600 
A shares and 23 620 711 R shares with a nominal value of EUR 40.2
million. The holding represents 2.9% of the Company's share capital
and 1.0% of the voting rights.

The Annual General Meeting (AGM) of Stora Enso Oyj on 22 March 2005
authorised the Board to repurchase and dispose of not more than
17 900 000 A shares and 62 150 000 R shares in the Company. The
repurchases started on 30 March 2005 and by the end of the quarter
the Company had repurchased a total of 38 600 A shares at an average
price of EUR 10.74 and 22 408 200 R shares at an average price of
EUR 10.58 under the authorisation.

Since the beginning of 2005, the Company has invested EUR 336.3
million in buying back 42 600 A shares and 31 075 780 R shares at an
average price per share of EUR 10.83 for A shares and EUR 10.81 for
R shares.


Changes in Organisational Structure

Stora Enso merged its North American division into its global
product divisions in order to streamline its organisational
structure with effect from 1 September 2005. The North American
business areas became part of the global product divisions. The
North American operations are no longer defined as a division of the
Group and hence financial figures for the North American operations
will not be reported separately twice per year as before.


Senior Management Changes

John Gillen, Senior Vice President, Coated Mechanical Papers at
Stora Enso's North American operations, was appointed Region Manager
North America in addition to his present responsibilities, effective
from 1 January 2006. He was also invited to become a member of the
Stora Enso Management Group.

Lars Bengtsson, currently Senior Executive Vice President of Stora
Enso's North American operations and member of the Stora Enso
Executive Management Group, will retire on 31 December 2005.


Nomination Committee

Stora Enso Oyj's Annual General Meeting on 22 March 2005 approved a
proposal to appoint a Nomination Committee to prepare proposals
concerning (a) the number of members of the Board of Directors, (b)
members of the Board of Directors, (c) the remuneration for Chairman, 
Vice Chairman and members of the Board of Directors and (d) the 
remuneration for the Chairman and members of the committees of the 
Board of Directors. According to the Charter, the Nomination Committee 
shall consist of four members:
­* the Chairman of the Board of Directors
­* the Vice Chairman of the Board of Directors
­* two members appointed by the two largest shareholders (one
  each) according to the share register of 1 October 2005.

The members appointed by Stora Enso Oyj's Board of Directors are
Claes Dahlbäck and Ilkka Niemi. The members appointed by the two
largest shareholders are Markku Tapio (Finnish State) and Marcus
Wallenberg (Knut and Alice Wallenberg Foundation). Markku Tapio was
elected Chairman of the Committee at its first meeting.


Events after the Period

Moody's downgrading of Stora Enso

Moody's has downgraded Stora Enso's senior unsecured debt rating to
Baa2 (negative) from Baa1 (negative) and the short term rating to 
P-2 (negative) from P-2 (stable). Moody's said that the rating action
was caused by the ongoing weak operating environment for the
European paper industry and a lack of visible improvements in Stora
Enso's weak credit metrics.


Programmes to Strengthen Financial Performance

On 27 October Stora Enso announced details of its Profit 2007 and
Asset Performance Review (APR) programmes. The main initiative in
Profit 2007 is an improvement of EUR 300 million in annual pre-tax
profit and in APR an intention to reduce capacity by about 400 000
tonnes in the short term.


Short-term Outlook

In Europe demand for advertising-driven paper grades is expected to
improve, thereby increasing demand for publication papers. Prices
should remain stable in these grades for the rest of the year, but
are expected to improve early next year. Seasonal strengthening in
demand for fine paper is anticipated leading to moderate price rises
in uncoated fine paper; further increases are expected in the
beginning of next year. Packaging board demand should be stable,
allowing prices for some grades to increase. Markets for wood
products are likely to remain balanced with stable prices.

In North America magazine paper demand is expected to remain firm,
but demand for newsprint is weakening. Price increases have been
announced for publication paper grades. A seasonal rise in demand
for coated fine paper should result in some price increases.

In Asia fine paper demand is predicted to be rather sluggish and
further price erosion is anticipated.

Operating profit excluding non-recurring items is expected to be
higher in the fourth quarter than the third quarter despite higher
maintenance costs. Following the new Finnish labour agreement,
capacity can be utilised during the whole year, allowing maintenance
stoppages to be optimised.

The Group has estimated that the provisions and write-downs in the
fourth quarter of 2005 related to the anticipated closures may be
approximately EUR 300 million of which about EUR 50 million would
have a cash impact. A release of EUR 30 million of net working
capital of is also expected.


This report is unaudited.


Helsinki, 27 October 2005
Stora Enso Oyj
Board of Directors



Segments (compared with the previous quarter)


Publication Paper
                                                                         Change
EUR                                                                           %
million     2004   Q1/04   Q2/04   Q3/04   Q4/04   Q1/05   Q2/05   Q3/05  Q3/Q2

Sales     4588.9  1081.8  1131.8  1144.1  1231.2  1111.3  1133.1  1166.0    2.9
Operating 
profit*    103.5    12.1     4.3    46.4    40.7    21.1    31.1    67.9  118.3
% of sales   2.3     1.1     0.4     4.1     3.3     1.9     2.7     5.8
ROOC,%**     2.4     1.1     0.4     4.2     3.7     1.9     2.7     5.9
Deliveries,
1000 t     7 398   1 732   1 819   1 846   2 001   1 701   1 719   1 734    0.9
Production,
1000 t     7 396   1 830   1 782   1 886   1 899   1 775   1 599   1 849   15.6

* Excluding non-recurring items and goodwill amortisation 
** ROOC = 100% x Operating profit/Operating capital

Publication paper sales were EUR 1 166.0 million, up 3% on the
previous quarter due to the increased deliveries, the stronger US
dollar and price rises outside Europe. Operating profit was EUR 67.9
million, up 118% on the previous quarter owing to higher production
due to the resumption of Finnish production after the labour dispute.

In Europe demand for newsprint and coated magazine paper was similar
to a year ago, whereas demand for uncoated magazine paper was
weaker. Since the end of the Finnish labour dispute, deliveries from
Europe to overseas markets have recovered and all mills operated at
practically full capacity. Prices were stable.

In North America demand was strong for uncoated magazine paper and
somewhat weaker for coated magazine paper. Newsprint demand declined
further. Inventories were normal. Some price increases were achieved
in all publication paper grades.

Order books are healthy. In addition to the seasonal autumn strength
due to the catalogue season, there is evidence of some recovery in
advertising-driven paper demand. In North America the market is
expected to remain firm for magazine grades, and price increases
have been announced for magazine and newsprint grades during the
fourth quarter.


Fine Paper
                                                                          Change
                                                                               % 
EUR million       2004  Q1/04  Q2/04  Q3/04  Q4/04  Q1/05  Q2/05  Q3/05    Q3/Q2

Sales           2645.4  656.8  647.1  669.5  672.0  697.2  610.6  625.4      2.4
Operating
profit *          58.4   14.5   -0.4   29.7   14.6   48.4  -14.1   -1.2      N/A
% of sales         2.2    2.2   -0.1    4.4    2.2    6.9   -2.3   -0.2
ROOC, % **         2.1    2.1   -0.1    4.1    2.1    6.9   -2.0   -0.2
Deliveries,
1000 t           3 514    862    869    881    902    943    797    811      1.8
Production,
1000 t           3 648    890    900    938    920    926    704    914     29.8

* Excluding non-recurring items and goodwill amortisation 
** ROOC = 100% x Operating profit/Operating capital

Fine paper sales were EUR 625.4 million, up 2% on the previous
quarter. Sales were depressed by the Finnish labour dispute. There
was an operating loss of EUR 1.2 million, an improvement of EUR 12.9
million compared with the previous quarter.

Stora Enso's deliveries of coated and uncoated paper were at the
same level as in the second quarter this year and less than in the
third quarter last year as deliveries were still affected by the
labour dispute and subsequent replenishment of the Group's
inventory. Prices remained unchanged during the summer at low levels.

In North America the coated fine paper market showed seasonal
improvement on the second quarter. Local merchants are reporting
higher sales activity. However, year-to-date demand is still lower
than a year ago.

In Asia coated fine paper demand has been stable, but prices are
decreasing as capacity in the region increases.

In Europe and North America the outlook for the coated fine paper
market is cautiously positive. Normal seasonal increase in the
demand for uncoated fine paper is expected later in the year. The
price increase announced in standard copy paper is being mostly
achieved in Europe.


Merchants
Merchant sales were EUR 295.2 million, up 36% on the previous
quarter due to the acquisition of Schneidersöhne, which was
consolidated from 2 September. Operating profit was EUR 0.9 million,
down 44% on the previous quarter, due to inventory valuation costs
related to the Schneidersöhne acquisition. The profitability of the
merchant business in 2005 will be affected by the cost of
integrating and restructuring the three acquisitions Schneidersöhne,
Papeteries de France and Scaldia.


Packaging Boards
                                                                          Change
                                                                               %  
EUR million       2004  Q1/04  Q2/04  Q3/04  Q4/04  Q1/05  Q2/05  Q3/05    Q3/Q2

Sales          3 053.4  764.7  777.9  742.6  768.2  794.5  768.2  788.7      2.7
Operating
profit *         271.3   82.3   64.6   84.8   39.6   72.0   11.9   73.5      N/M
% of sales         8.9   10.8    8.3   11.4    5.2    9.1    1.5    9.3
ROOC, % **         9.1   11.5    9.0   11.7    5.3    9.3    1.5    9.6
Deliveries,
1 000 t          3 499    874    886    859    880    929    873    890      1.9
Production,
1 000 t          3 475    864    874    901    837  1 002    715  1 009     41.1

* Excluding non-recurring items and goodwill amortisation 
**ROOC = 100% x Operating profit/Operating capital

Packaging board sales were EUR 788.7 million, up 3% on the previous
quarter as volumes rose towards normal levels following the Finnish
labour dispute. Operating profit was EUR 73.5 million, compared with
EUR 11.9 million in the second quarter.

Demand has been stable with some inventory replenishment following
the labour dispute in Finland. Total inventories were close to
normal levels.

The demand and price outlook remains stable with good order books in
most grades. Some price increases have been announced for
cartonboard in Europe.


Wood Products
                                                                          Change
                                                                               % 
EUR million       2004  Q1/04  Q2/04  Q3/04  Q4/04  Q1/05  Q2/05  Q3/05    Q3/Q2

Sales          1 566.8  373.1  419.2  388.5  386.0  366.9  433.7  398.0     -8.2
Operating
profit *          34.7   11.4   21.3   10.9   -8.9   -4.0    9.9   -1.8      N/A
% of sales         2.2    3.1    5.1    2.8   -2.3   -1.1    2.3   -0.5
ROOC, % **         5.2    7.0   12.5    6.3   -5.2   -2.3    5.5   -1.0
Deliveries,
1 000 m3         6 664  1 597  1 777  1 595  1 695  1 541  1 855  1 639    -11.6

* Excluding non-recurring items and goodwill amortisation 
**ROOC = 100% x Operating profit/Operating capital

Wood product sales were EUR 398.0 million, down 8% on the previous
quarter mainly due to lower production and sales volumes. Operating
loss was EUR 1.8 million, a deterioration of EUR 11.7 million
compared with the previous quarter due to lower volumes.

Global consumption of wood products remained stable, but price rises
were insufficient to compensate for increasing raw material costs.
Decreased supplies from Finland supported a slight improvement in
prices for redwood sawn products. The market for whitewood products
is influenced by strong supply, especially from Sweden. Exports from
Europe to the USA increased.

The outlook for housing and joinery markets in Europe, the USA and
Japan remains positive. In North Africa and especially the Middle
East, the market outlook is good, driven by higher oil prices.
However, oil prices are also increasing freight costs.


Wood Supply Europe
Deliveries to the Group's mills in Finland, Sweden, the Baltic
States, Russia and Continental Europe totalled 9.8 million cubic
metres, up 11% on the previous quarter. There was an operating loss
of EUR 0.3 million (EUR 10.9 million loss).

Stocks of all types of pulpwood are high due to the Finnish labour
dispute and the storm in southern Sweden at the beginning of 2005.
The supply of sawlogs is becoming tighter in some mills in
Continental Europe and the Baltic States.


Financials
Key Ratios       Q1/04   Q2/04   Q3/04   Q4/04    2004   Q1/05   Q2/05   Q3/05

Earnings per share 
(basic), EUR      0.49    0.06    0.16    0.18    0.89    0.07   -0.01    0.08
Earnings per share 
excl. non recurring
items, EUR        0.06    0.06    0.11    0.03    0.26    0.07    0.00    0.08
Cash earnings per 
share (CEPS), EUR 0.54    0.43    0.51    0.53    2.02    0.41    0.35    0.44
CEPS excl. non-recurring
items, EUR        0.41    0.43    0.46    0.38    1.67    0.41    0.35    0.44

Return on capital 
employed (ROCE), % 7.9     2.1     7.9     8.2     6.4     4.1     0.2     3.7
ROCE excl. non-recurring
items, %           3.7     2.1     5.1     1.5     3.0     4.1     0.6     3.7
Return on equity 
(ROE), %          20.5     2.6     6.9     7.4     9.3     3.0    -0.4     3.5
Debt/equity ratio 0.39    0.43    0.42    0.38    0.38    0.51    0.58    0.62
Equity per share, 
EUR               9.46    9.53    9.70    9.80    9.80    9.46    9.46    9.67
Equity ratio, %   47.7    48.2    48.5    49.8    49.8    45.8    45.0    43.2

Operating profit, 
% of sales         7.2     1.8     7.0     6.8     5.7     3.6     0.2     3.3
Operating profit excl.
non-recurring items, 
% of sales         3.4     1.8     4.6     1.3     2.7     3.6     0.6     3.3
Capital expenditure,
EUR million      216.1   281.1   268.1   214.3   979.6   356.6   253.0   256.3
Capital expenditure,
% of sales         7.2     9.1     8.8     6.6     7.9    11.3     7.9     8.0
Capital employed, 
EUR million     10 561  10 812  10 831  10 656  10 656  11 119  11 273  11 740
Interest-bearing 
net liabilities, 
EUR million      3 105   3 356   3 343   3 052   3 052   3 928   4 340   4 699

Average number
of employees    42 446  43 795  44 045  43 779  43 779  44 870  45 670  47 768
Average number of shares
(million)
  periodic       835.3   831.8   826.3   822.0   828.8   816.3   800.0   790.5
  cumulative     835.3   833.6   831.1   828.8   828.8   816.3   808.1   802.1
  cumulative,
   diluted       836.0   834.4   831.9   829.4   829.4   816.9   808.7   802.6


Key Exchange Rates for the Euro
One Euro is                   Closing Rate                   Average Rate
                      31 Dec 2004     30 Sep 2005     31 Dec 2004    30 Sep 2005
SEK                      9.0206          9.3267         9.1253         9.2184
USD                      1.3621          1.2042         1.2440         1.2631
GBP                      0.7051          0.6820         0.6786         0.6850
CAD                      1.6416          1.4063         1.6166         1.5465


Condensed Consolidated Income Statement
EUR million                                     2004    Q1–Q3/2004    Q1–Q3/2005

Sales                                       12 395.8       9 153.9       9 551.4
 Other operating income                        153.8         194.3          54.4
 Materials and services                     -6 534.6      -4 778.6      -5 197.1
 Freight and sales commissions              -1 367.8      -1 010.8      -1 087.4
 Personnel expenses                         -1 934.8      -1 576.0      -1 639.5
 Other operating expenses                     -831.8        -613.3        -606.0
 Depreciation and impairment                -1 172.0        -882.2        -851.2
Operating Profit                               708.6         487.3         224.6
 Share of results of associated companies       38.9          24.6          42.8
 Net financial items                          -106.0         -73.5        -102.7
Profit before Tax                              641.5         438.4         164.7
 Income tax                                    107.4         161.0         -46.8
Net Profit for the Period                      748.9         599.4         117.9
   
Attributable to:
 Company shareholders                          740.8         591.7         114.9
 Minority interests                             -8.1          -7.7          -3.0
                                               748.9         599.4         117.9
Key Ratios
 Basic earnings per share, EUR                  0.89          0.71          0.14
 Diluted earnings per share, EUR                0.89          0.71          0.14


Condensed Consolidated Cash Flow Statement
EUR million                                      2004    Q1–Q3/2004   Q1–Q3/2005

Cash Flow from Operating Activities
 Operating profit                               708.6         487.3        224.6
 Adjustments                                  1 039.1         766.4        871.6
 Change in disability pension scheme           -179.9
 Change in net working capital                 -367.7        -478.1       -208.9
 Change in short-term interest-bearing
  receivables                                   444.3         579.9         18.8
Cash Flow Generated by Operations             1 644.4       1 355.5        906.1
 Net financial items                           -124.8         -91.4        -82.9
 Income taxes paid                             -114.2        -149.5       -175.2
Net Cash Provided by Operating Activities     1 405.4       1 114.6        648.0
   
Cash Flow from Investing Activities
 Acquisitions of group companies               -176.4         -40.8       -291.1
 Acquisitions of associated companies          -250.4        -237.7        -38.0
 Proceeds from sale of fixed assets and shares  253.9         204.3         12.8
 Capital expenditure                           -979.6        -765.3       -876.8
 Proceeds from the long-term receivables, net  -182.5        -174.2        122.5
Net Cash Used in Investing Activities        -1 335.0      -1 013.7     -1 070.6
   
Cash Flow from Financing Activities
 Change in long-term liabilities              1 261.2        -201.3      1 064.0
 Change in short-term borrowings               -697.5         707.7         70.6
 Dividends paid                                -375.7        -375.7       -365.3
 Minority dividends                              -1.9
 Options exercised                                1.6           4.4
 Purchase of own shares                        -198.6        -175.3       -336.3
Net Cash Used in Financing Activities           -10.9         -40.2        433.0
   
Net Increase in Cash and Cash Equivalents        59.5          60.7         10.4
 Cash and bank in acquired companies             45.9             -         13.3
 Cash and bank in sold companies                -29.5         -68.2
 Translation differences on cash holdings        -3.1           1.9          7.4
 Cash and bank at the beginning of period       201.5         201.5        274.3
Cash and Cash Equivalents at Period End         274.3         195.9        305.4


Property, Plant and Equipment, Intangible Assets and Goodwill
EUR million                                      2004    Q1–Q3/2004   Q1–Q3/2005

 Carrying value at 1 January                 12 535.3      12 535.3     10 715.5
 Acquisition of subsidiary companies            190.2          39.8        445.1
 Additions                                      975.1         765.3        865.9
 Additions in biological assets, IAS 41           4.5             -         10.9
 Disposals                                   -1 635.3      -1 588.7        -12.1
 Depreciation, amortisation and impairment   -1 172.0        -882.2       -851.2
 Translation difference and other              -182.3          42.7        312.8
Balance Sheet Total                          10 715.5      10 912.2     11 486.9
   
Acquisitions of Subsidiary Companies
 Cash and cash equivalents                       45.9                       13.3
 Working capital                                 44.0           8.6         94.4
 Operating fixed assets                         183.3          33.0        401.9
 Interest bearing assets                          0.7                       48.2
 Tax liabilities                                -19.2                     -114.5
 Interest bearing liabilities                   -11.4          -7.6       -264.7
 Non-cash share exchange                         -3.9                       -5.0
 Minority interests                             -69.9                       74.3
 Fair value of net assets                       169.5          34.0        247.9
 Goodwill                                         6.9           6.8         43.2
Total Purchase Consideration                    176.4          40.8        291.1


Borrowings
EUR million                                     2004    Q1–Q3/2004    Q1–Q3/2005

 Non-current borrowings                      3 328.1       3 186.5       4 359.2
 Current borrowings                            699.5       1 017.6       1 383.5
                                             4 027.6       4 204.1       5 742.7
   
 Carrying value at 1 January                 5 174.2       5 174.2       4 027.6
 Debt acquired with new subsidiaries            11.4           7.6         264.7
 Debt disposed with sold subsidiaries       -1 518.8      -1 487.2           0.0
 Proceeds from / -payments of borrowings (net) 552.5         495.8       1 167.0
 Translation difference and other             -191.7          13.7         283.4
Total Borrowings                             4 027.6       4 204.1       5 742.7


Condensed Consolidated Balance Sheet

Assets
EUR million                               31 Dec 2004   30 Sep 2004   30 Sep 2005
   
Fixed and Other Long-term Assets
 Fixed assets                          O     10 715.5      10 912.2      11 486.9
 Investment in associated companies             568.1         558.5         687.9
 Listed securities                     I        220.1         214.5         204.5
 Unlisted shares                       O        132.7         144.6         134.2
 Non-current loan receivables          I        233.1         225.6         216.3
 Deferred tax assets                   T         11.4          17.4          16.6
 Other non-current assets              O        210.5         233.5         246.8
                                             12 091.4      12 306.3      12 993.2
   
Current Assets
 Inventories                           O      1 771.3       1 850.6       2 030.4
 Tax receivables                       T        160.9         159.3         104.0
 Operative receivables                 O      1 865.3       1 858.7       2 121.6
 Interest-bearing receivables          I        248.7         225.4         317.7
 Cash and cash equivalents             I        274.3         195.9         305.4
                                              4 320.5       4 289.9       4 879.1
   
Total Assets                                16 411.9      16 596.2      17 872.3


Shareholders' Equity and Liabilities
EUR million                              31 Dec 2004   30 Sep 2004   30 Sep 2005

 Shareholders’ Equity                        8 036.3       7 980.1       7 631.3
 Minority Interests                            136.1          67.0          97.6
Total Equity                                 8 172.4       8 047.1       7 728.9
   
Long-term Liabilities
 Pension provisions                   O        637.8         824.2         687.3
 Other provisions                     O         60.9          73.8          62.1
 Deferred tax liabilities             T      1 314.6       1 240.6       1 242.4
 Long-term debt                       I      3 328.1       3 186.5       4 359.2
 Long-term operative liabilities      O        174.0         173.1         190.6
                                             5 515.4       5 498.2       6 541.6
Current Liabilities
 Current portion of long-term debt    I        102.1         152.1         337.0
 Interest-bearing liabilities         I        597.4         865.6       1 046.5
 Operative liabilities                O      1 673.1       1 670.3       1 823.6
 Tax liabilities                      T        351.5         362.9         394.7
                                             2 724.1       3 050.9       3 601.8
   
Total Liabilities                            8 239.5       8 549.1      10 143.4
   
Total Shareholders’ Equity and Liabilities  16 411.9      16 596.2      17 872.3

Items designated with "O" are included in operating capital. 
Items designated with "I" are included in interest-bearing net liabilities.
Items designated with "T" are included in the tax liability.


Statement of Changes in Company Shareholders' Equity
                                         Trea-                 
                        Share    Share    sury                 Retained   
EUR million           Capital  Premium  Shares    OCI      CTA Earnings    Total

Balance at 31 December 2003 
                      1 469.3  1 237.4  -258.0   114.6  -197.1  5 717.5  8 083.7

Restatement of opening balance
 Finnish Statutory 
  Pension Scheme            -        -       -       -       -   -130.8   -130.8
Balance at 1 January 2004 (restated) 
                      1 469.3  1 237.4  -258.0   114.6  -197.1  5 586.7  7 952.9

 Repurchase of Stora 
  Enso Oyj shares           -        -  -198.6       -       -        -   -198.6
 Cancellation of Stora
  Enso Oyj shares       -47.3   -228.5   275.8       -       -        -      0.0
 Dividend (EUR 0.45
  per share)                -        -       -       -       -   -375.7   -375.7
 Options exercised        1.3      0.3       -       -       -        -      1.6
 Net profit for
  the period                -        -       -       -   -11.7    739.7    728.0
 OCI entries                -        -       -   -47.0       -        -    -47.0
 Translation
  adjustment                -        -       -       -   -10.1        -    -10.1
Balance at 31 December 2004   
                      1 423.3  1 009.2  -180.8    67.6  -218.9  5 950.7  8 051.1

 Restatement of opening balance
  Effect of adopting IFRS 2 -        -       -       -       -    -14.8    -14.8
Balance at 1 January 2005 (restated)   
                      1 423.3  1 009.2  -180.8    67.6  -218.9  5 935.9  8 036.3

 Repurchase of Stora
  Enso Oyj shares           -        -  -336.3       -       -        -   -336.3
 Cancellation of Stora
  Enso Oyj shares       -41.2   -224.5   265.7       -       -        -        -
 Dividend (EUR 0.45
  per share)                -        -       -       -       -   -365.3   -365.3
 Options exercised          -      0.1       -       -       -        -      0.1
 Buy-out of minority 
  interests                 -        -       -       -       -    -30.1    -30.1
 Net profit for the
  period                    -        -       -       -       -    114.9    114.9
 OCI entries                -        -       -   105.5       -        -    105.5
 Translation adjustment     -        -       -       -   106.2        -    106.2
Balance at 30 September 2005 
                      1 382.1    784.8  -251.4   173.1  -112.7  5 655.4  7 631.3

CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income


Commitments and Contingencies
EUR million                          31 Dec 2004     30 Sep 2004     30 Sep 2005

On Own Behalf
 Pledges given                               0.8             0.8             1.1
 Mortgages                                 118.8            97.9           144.8
On Behalf of Associated Companies
 Mortgages                                   0.8             0.8             0.8
 Guarantees                                209.3           172.2           349.1
On Behalf of Others
 Pledges given                               0.0             0.0             0.0
 Mortgages                                   0.0             0.0             0.0
 Guarantees                                  6.8            12.1             7.8
Other Commitments, Own
 Leasing commitments, in next 12 months     32.6            30.4            34.8
 Leasing commitments, after next 12 months 159.2           141.4           167.8
 Pension liabilities                         2.2             2.8             1.5
 Other commitments                          92.5            70.6           100.7
Total                                      623.0           529.0           808.4
   
 Pledges given                               0.8             0.8             1.1
 Mortgages                                 119.6            98.7           145.6
 Guarantees                                216.1           184.3           356.9
 Leasing commitments                       191.8           171.8           202.6
 Pension liabilities                         2.2             2.8             1.5
 Other commitments                          92.5            70.6           100.7
Total                                      623.0           529.0           808.4


Net Fair Values of Derivative Financial Instruments
                                  31 Dec    30 Sep              30 Sep 
EUR million                         2004      2004                2005
                                     Net       Net  Positive  Negative       Net
                                    Fair      Fair      Fair      Fair      Fair
                                  Values    Values    Values    Values    Values

 Interest rate swaps               151.3     144.8     137.7     -20.4     117.3
 Interest rate options               1.0       0.5       0.2      -1.9      -1.7
 Cross-currency swaps              -11.6     -11.4       0.0      -3.8      -3.8
 Forward contracts                  89.5      33.5       4.6     -43.6     -39.0
 FX options                          1.8      -0.2       6.0     -13.2      -7.2
 Commodity contracts                23.6      71.4     141.4      -4.7     136.7
 Equity swaps                      -11.4     -22.9      26.8     -29.4      -2.6
Total                              244.2     215.7     316.7    -117.0     199.7


Nominal Values of Derivative Financial Instruments
EUR million                          31 Dec 2004     30 Sep 2004     30 Sep 2005

Interest Rate Derivatives
 Interest rate swaps
 Maturity under 1 year                      66.5           131.5           626.3
 Maturity 2–5 years                        953.4           702.7           339.0
 Maturity 6–10 years                     1 469.9         1 226.3         1 968.7
                                         2 489.8         2 060.5         2 934.0
 Interest rate options                     198.4           200.1           158.0
Total                                    2 688.2         2 260.6         3 092.0
   
Foreign Exchange Derivatives
 Cross-currency swap agreements            102.7           107.8            74.4
 Forward contracts                       2 479.8         2 819.0         2 056.0
 FX Options                                588.3            64.7         1 178.9
Total                                    3 170.8         2 991.5         3 309.3
   
Commodity Derivatives
 Commodity contracts                       442.7           460.8           397.0
Total                                      442.7           460.8           397.0
   
Equity swaps
 Equity swaps                              359.5           359.5           408.5
Total                                      359.5           359.5           408.5


Sales by Segment
EUR
million      2003   Q1/04   Q2/04   Q3/04   Q4/04     2004   Q1/05   Q2/05   Q3/05

Publication
 Paper     4537.4  1081.8  1131.8  1144.1  1231.2   4588.9  1111.3  1133.1  1166.0
Fine 
 Paper     2678.4   656.8   647.1   669.5   672.0   2645.4   697.2   610.6   625.4
Merchants   627.6   160.3   148.5   145.7   183.4    637.9   182.1   217.4   295.2
Packaging
 Boards    2982.9   764.7   777.9   742.6   768.2   3053.4   794.5   768.2   788.7
Wood
 Products  1400.0   373.1   419.2   388.5   386.0   1566.8   366.9   433.7   398.0
Wood Supply
 Europe    2074.3   634.9   621.4   568.3   657.0   2481.6   674.7   563.2   612.4
Other     -2128.3  -653.7  -643.0  -625.6  -655.9  -2578.2  -681.8  -538.9  -666.5
Total
 Sales    12172.3  3017.9  3102.9  3033.1  3241.9  12395.8  3144.9  3187.3  3219.2


Operating Profit by Segment excluding Non-recurring items 
 and Goodwill Amortisation
EUR million        2003  Q1/04  Q2/04  Q3/04  Q4/04    2004  Q1/05  Q2/05  Q3/05

Publication
 Paper            121.5   12.1    4.3   46.4   40.7   103.5   21.1   31.1   67.9
Fine Paper        151.4   14.5   -0.4   29.7   14.6    58.4   48.4  -14.1   -1.2
Merchants          -6.7    3.3    2.4    1.6    3.9    11.2    2.7    1.6    0.9
Packaging
 Boards           284.1   82.3   64.6   84.8   39.6   271.3   72.0   11.9   73.5
Wood Products      26.5   11.4   21.3   10.9   -8.9    34.7   -4.0    9.9   -1.8
Wood Supply
 Europe           116.5   31.3    3.3    3.1   -5.4    32.3    3.1  -10.9   -0.3
Other             -54.4  -30.1  -17.3  -15.7  -19.1   -82.2  -30.6  -11.8  -32.8
Operating Profit excl. 
 Goodwill Amortisation
                  638.9  124.8   78.2  160.8   65.4   429.2  112.7   17.7  106.2

Goodwill
 amortisation    -116.0  -22.7  -21.9  -21.7  -24.0   -90.3      -      -      -
Non-recurring
 items            -54.4  115.7      -   74.1  179.9   369.7      -  -12.0      -
Operating
 Profit (IFRS)    468.5  217.8   56.3  213.2  221.3   708.6  112.7    5.7  106.2

Net financial
 items           -237.7  -20.3  -26.2  -27.0  -32.5  -106.0  -43.1  -34.6  -25.0
Associated
 companies        -23.0   -2.3   16.7   10.2   14.3    38.9   14.0   17.0   11.8
Profit before Tax and
Minority Interests 
                  207.8  195.2   46.8  196.4  203.1   641.5   83.6  -11.9   93.0

Income tax
 expense          -66.0  214.3    5.6  -58.8  -53.7   107.4  -23.6    3.3  -26.5
Profit after Tax  141.8  409.5   52.4  137.6  149.4   748.9   60.0   -8.6   66.5

Minority interests -5.8   -4.2   -2.1   -1.4   -0.4    -8.1   -1.4   -1.5   -0.1
Net Profit        136.0  405.3   50.3  136.2  149.0   740.8   58.6  -10.1   66.4


Non-recurring Items by Segment
EUR million         2003  Q1/04  Q2/04  Q3/04  Q4/04   2004  Q1/05  Q2/05  Q3/05

Publication Paper  -29.5      -      -   30.8   45.6   76.4      -      -      -
Fine Paper          -7.2      -      -   29.9   37.0   66.9      -      -      -
Merchants              -      -      -      -    0.8    0.8      -      -      -
Packaging Boards    -3.1      -      -   11.6   67.0   78.6      -      -      -
Wood Products          -      -      -      -   16.4   16.4      -  -12.0      -
Wood Supply
 Europe                -  115.7      -      -   10.6  126.3      -      -      -
Other              -14.6      -      -    1.8    2.5    4.3      -      -      -
Total Non-recurring 
 Items             -54.4  115.7      -   74.1  179.9  369.7      -  -12.0      -


Operating Profit by Segment
EUR million        2003  Q1/04  Q2/04  Q3/04  Q4/04    2004  Q1/05  Q2/05  Q3/05

Publication
 Paper             92.0   12.1    4.3   77.2   86.3   179.9   21.1   31.1   67.9
Fine Paper        144.2   14.5   -0.4   59.6   51.6   125.3   48.4  -14.1   -1.2
Merchants          -6.7    3.3    2.4    1.6    4.7    12.0    2.7    1.6    0.9
Packaging
 Boards           281.0   82.3   64.6   96.4  106.6   349.9   72.0   11.9   73.5
Wood Products      26.5   11.4   21.3   10.9    7.5    51.1   -4.0   -2.1   -1.8
Wood Supply
 Europe           116.5  147.0    3.3    3.1    5.2   158.6    3.1  -10.9   -0.3
Other             -69.0  -30.1  -17.3  -13.9  -16.6   -77.9  -30.6  -11.8  -32.8
Operating
Profit excl. Goodwill
 Amortisation     584.5  240.5   78.2  234.9  245.3   798.9  112.7    5.7  106.2

Goodwill
 amortisation    -116.0  -22.7  -21.9  -21.7  -24.0   -90.3      -      -      -
Operating Profit  468.5  217.8   56.3  213.2  221.3   708.6  112.7    5.7  106.2

Net financial
 items           -237.7  -20.3  -26.2  -27.0  -32.5  -106.0  -43.1  -34.6  -25.0
Associated
 companies        -23.0   -2.3   16.7   10.2   14.3    38.9   14.0   17.0   11.8
Profit before Tax and
Minority Interests
                  207.8  195.2   46.8  196.4  203.1   641.5   83.6  -11.9   93.0

Income tax
 expense          -66.0  214.3    5.6  -58.8  -53.7   107.4  -23.6    3.3  -26.5
Profit after Tax  141.8  409.5   52.4  137.6  149.4   748.9   60.0   -8.6   66.5

Minority interests -5.8   -4.2   -2.1   -1.4   -0.4    -8.1   -1.4   -1.5   -0.1
Net Profit        136.0  405.3   50.3  136.2  149.0   740.8   58.6  -10.1   66.4


Stora Enso Shares

Closing Price        Helsinki, EUR           Stockholm, SEK       New York, USD
                 Series A    Series R    Series A    Series R          ADRs
July               10.79       10.93      103.00       103.00         13.32
August             11.13       11.15      104.00       104.50         13.86
September          11.45       11.44      107.00       107.00         13.83


Trading Volume         Helsinki                Stockholm             New York
                 Series A    Series R     Series A   Series R          ADRs
July              76 439     79 190 242   166 566    9 045 680      2 737 500
August           110 577     63 394 038   292 247    8 263 422      2 160 100
September        225 850     65 029 830   443 831    19 796 270     2 157 200
Total            412 866    207 614 110   902 644    37 105 372     7 054 800


www.storaenso.com
www.storaenso.com/investors

Publication dates for financial information
Results for 2005 - 2 February 2006 
Interim Review for January – March 2006 - 26 April 2006 
Interim Review for January – June 2006 - 26 July 2006
Interim Review for January – September 2006 - 26 October 2006
Annual General Meeting - 21 March 2006


It should be noted that certain statements herein which are not
historical facts, including, without limitation those regarding
expectations for market growth and developments; expectations for
growth and profitability; and statements preceded by "believes",
"expects", "anticipates", "foresees", or similar expressions, are
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Since these
statements are based on current plans, estimates and projections,
they involve risks and uncertainties, which may cause actual results
to materially differ from those expressed in such forward-looking
statements. Such factors include, but are not limited to: (1)
operating factors such as continued success of manufacturing
activities and the achievement of efficiencies therein, continued
success of product development, acceptance of new products or
services by the Group's targeted customers, success of the existing
and future collaboration arrangements, changes in business strategy
or development plans or targets, changes in the degree of protection
created by the Group's patents and other intellectual property
rights, the availability of capital on acceptable terms; (2)
industry conditions, such as strength of product demand, intensity
of competition, prevailing and future global market prices for the
Group's products and the pricing pressures thereto, price
fluctuations in raw materials, financial condition of the customers
and the competitors of the Group, the potential introduction of
competing products and technologies by competitors; and (3) general
economic conditions, such as rates of economic growth in the Group's
principal geographic markets or fluctuations in exchange and
interest rates.


STORA ENSO OYJ


p.p.    Jussi Siitonen  Jukka Marttila

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