Stora Enso Interim Review January-September 2007

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Earnings negatively impacted by higher wood costs and weak US dollar;           
restructuring measures announced                                                

Summary of Third Quarter Results (compared with Q3/2006)                        
Continuing Operations:                                                          
Sales were EUR 3 234.5 (EUR 3 212.2) million.                                   
Operating profit excluding non-recurring items (NRI), non-operational items and 
valuation gain in Tornator forest asset was EUR 207.1 (EUR 216.7) million.      
Operating profit was EUR 252.0 (EUR 246.2) million excluding NRI and EUR -297.4 
(EUR 83.2) million including NRI, both including EUR -3.1 (EUR 29.5) million net
impact of non-operational items.                                                
Profit before tax was EUR 225.1 (EUR 221.5) million excluding NRI and EUR -324.3
(EUR 58.5) million including NRI.                                               
Net profit was EUR 178.6 (EUR 162.8) million excluding NRI and EUR -264.1 (EUR  
93.1) million including NRI.                                                    
Earnings per share were EUR 0.23 (EUR 0.21) excluding NRI and EUR -0.33 (EUR    
0.12) including NRI. Cash earnings per share were EUR 0.48 (EUR 0.49) excluding 
NRI.                                                                            
ROCE excluding NRI was 9.4% (10.0%).                                            
Stora Enso North America is included in the accounts as a discontinued          
operation.                                                                      

Message from CEO Jouko Karvinen:                                                
“Stora Enso's results for the third quarter of 2007 were negatively impacted by 
the same factors that affected our second quarter performance - higher wood     
costs and the weakening US dollar. Our reported operating profit before         
non-recurring items was higher than a year ago, but we were unable to maintain  
the trend of year-on-year improvement after adjusting for non-operational items,
which is one of our key performance metrics. The financial performance of       
Magazine Paper was poor due to low sales prices and higher manufacturing costs. 
Conditions for Wood Products started to deteriorate rapidly after the first     
half, but its third quarter performance was still clearly ahead of the year     
before. Fine Paper continued to perform well, and the Newsprint and Industrial  
Packaging results remained good. Consumer Board in particular suffered from     
escalating wood costs and wood shortage in Finland and Russia.                  
                                                                                
“We are responding to the reality of the situation we are in, both in terms of  
the production side of our business as well as addressing key raw material      
costs, so that we can swiftly return to our long-term earnings improvement path.
Simultaneously with this Interim Review, we are therefore announcing a plan of  
action to improve our marginal costs and reduce wood consumption - particularly 
in Finland but also in Sweden - by closing production capacity. At the same     
time, we will cut administrative costs across the Group. These actions, and my  
comments on them, are detailed in a separate press release we are issuing today.

“We also need to be clear that this is the response to the current situation,   
before implementation of higher Russian wood export duties from 1 January 2009. 
If the issue of these duties cannot be resolved or wood cost increases do not   
reverse, we will need to take further action, including additional permanent    
mill closures.                                                                  

”During the remainder of 2007, we will continue to suffer from high wood and    
recovered paper costs. In addition to the planned permanent capacity closures,  
we will therefore curtail production in the fourth quarter in both Newsprint and
Wood Products. Sunila Pulp Mill will cut production through a maintenance       
stoppage and Kemijärvi Pulp Mill will slowdown the production during the fourth 
quarter. In addition, our Finnish sawmills will reduce spruce volumes this      
quarter, and there will be a curtailment in newsprint production. All these     
actions will be taken during the fourth quarter of 2007. Although these actions 
will negatively impact the fourth quarter results, they will accelerate marginal
cost improvements in the coming quarters and years.”                            

Near-term market outlook                                                        
In Europe economic activity is expected to remain stable, although uncertainty  
is growing. The market outlook continues to be challenging and the sharp        
depreciation of the US dollar is further increasing competition in the          
marketplace. Moderate demand for the Group's products is anticipated, with a    
slight seasonal improvement in some of the business areas.                      

Demand for newsprint is forecast to be flat and prices unchanged, according to  
annual agreements. Magazine paper is benefiting from seasonally improved demand,
which is expected to stay firm. However, market conditions in Europe will remain
difficult and affected by US dollar weakness. Prices have stabilised, and some  
increases for non-contractual business in coated magazine paper are predicted,  
but no change in uncoated magazine paper prices is foreseen. Forecasts for fine 
paper demand and price increases are moderating. Flat demand for consumer board 
is anticipated, with price rises partly offset by US dollar weakness. Demand for
industrial packaging should remain good, supporting some further price          
increases.                                                                      

Following the very strong first half of 2007, markets for wood products are now 
oversupplied, rapidly depressing the outlook for deliveries and prices. The     
outlook for the next two quarters is also impaired by a temporary slowdown in   
demand in Japan. Raw material costs in Finland, Russia and the Baltic States are
at record highs.                                                                

In Latin America coated magazine paper demand and prices are expected to improve
slightly. In China demand for coated fine paper remains moderate, although some 
prices are rising.                                                              

Stora Enso maintains its cost inflation forecast of about 3.5% for the full year
2007.                                                                           

Markets                                                                         
Compared with Q3/2006                                                           
In Europe market demand was stronger for magazine paper, fine paper and         
industrial packaging, but slightly weaker for newsprint and wood products.      

Prices were higher for newsprint, uncoated fine paper, wood products and most   
consumer board and industrial packaging grades. Prices were virtually unchanged 
for coated fine paper but lower for all magazine paper grades.                  

Producer inventories were lower than a year ago in coated magazine paper and    
coated fine paper, similar in uncoated magazine paper and higher in newsprint,  
uncoated fine paper and wood products.                                          

In Latin America market demand for coated magazine paper was stronger, but      
prices were lower than a year earlier.                                          

In China market demand for coated fine paper continued to grow and prices were  
higher than a year ago.                                                         

Compared with Q2/2007                                                           
In Europe market demand was seasonally stronger for magazine paper and coated   
fine paper, but slightly weaker for newsprint, uncoated fine paper, consumer    
board and wood products. Market demand for industrial packaging was virtually   
unchanged.                                                                      

Uncoated fine paper prices continued to rise, and most consumer board and       
industrial packaging prices also increased. Newsprint and magazine paper prices 
remained largely unchanged, but prices for coated fine paper and wood products  
declined slightly.                                                              

Producer inventories decreased in magazine paper and coated fine paper, but     
increased in newsprint, uncoated fine paper and wood products.                  

In Latin America market demand was stronger, but prices declined.               

In China market demand for coated fine paper continued to grow and prices       
increased slightly.                                                             

Stora Enso Deliveries and Production from Continuing Operations                 
--------------------------------------------------------------------------------
|                   | Q1-Q3 | Q1-Q3 | Q3/06 | Q2/07 | Q3/07  | Change | Change |
|                   | /06   | /07   |       |       |        | s      | s      |
|                   |       |       |       |       |        | Q3/07- | Q3/07- |
|                   |       |       |       |       |        | Q3/06  | Q2/07  |
--------------------------------------------------------------------------------
| Paper and board   | 9 329 | 9 330 | 3 128 | 3 068 |  3 112 |    -16 |     44 |
| deliveries (1 000 |       |       |       |       |        |        |        |
| tonnes)           |       |       |       |       |        |        |        |
--------------------------------------------------------------------------------
| Paper and board   | 9 412 | 9 403 | 3 095 | 3 107 |  3 119 |     24 |     12 |
| Production (1 000 |       |       |       |       |        |        |        |
| tonnes)           |       |       |       |       |        |        |        |
--------------------------------------------------------------------------------
| Wood products     | 4 902 | 5 046 | 1 593 | 1 797 |  1 583 |    -10 |   -214 |
| deliveries (1 000 |       |       |       |       |        |        |        |
| m3)               |       |       |       |       |        |        |        |
--------------------------------------------------------------------------------



Q3/2007 Results (compared with Q3/2006)                                         
Sales from continuing operations at EUR 3 234.5 million were approximately the  
same as a year earlier. Higher average prices for wood products and increased   
deliveries in Merchants and industrial packaging were largely offset by lower   
consumer board deliveries and sales prices.                                     

Operating profit from continuing operations excluding non-recurring items       
increased by EUR 5.8 million to EUR 252.0 million, which is 7.8% of sales.      
Operating profit was higher in Wood Products, Fine Paper and Magazine Paper,    
approximately the same in Industrial Packaging and Merchants, but clearly lower 
in Consumer Board, mainly due to higher wood costs and standstills at Enocell   
Pulp Mill, and also lower in Newsprint, mainly due to higher raw material costs,
especially for wood and recycled paper.                                         

Changes in exchange rates, mainly depreciation of the US dollar, decreased      
operating profit from continuing operations by some EUR 20 million compared with
the third quarter of 2006.                                                      

Deliveries of wood to the Group's mills totalled 11.3 million cubic metres, up  
5% on the third quarter of 2006. Wood costs were considerably higher in the     
third quarter of 2007 than a year earlier.                                      

Key Figures                                                                     
--------------------------------------------------------------------------------
| EUR million | 200 | 200 | Q1- | Q1- | Q3/ | Q2/0 | Q3/0 | Chan | Chan | Chan |
|             |   5 |   6 | Q3/ | Q3/ |  06 |    7 |    7 | ge % | ge % | ge % |
|             |     |     |  06 |  07 |     |      |      |  Q3/ |  Q3/ |  Q1- |
|             |     |     |     |     |     |      |      | 07-Q | 07-Q | Q3/0 |
|             |     |     |     |     |     |      |      | 3/06 | 2/07 | 7-Q1 |
|             |     |     |     |     |     |      |      |      |      | -Q3/ |
|             |     |     |     |     |     |      |      |      |      |  06  |
--------------------------------------------------------------------------------
| Continuing  |     |     |     |     |     |      |      |      |      |      |
| Operations  |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| Sales       | 11  | 12  | 9 6 | 10  | 3 2 | 3 35 | 3 23 |  0.7 | -3.6 |  3.8 |
|             | 342 | 957 | 37. | 000 | 12. |  5.9 |  4.5 |      |      |      |
|             |  .7 |  .2 |   3 |  .9 |   2 |      |      |      |      |      |
--------------------------------------------------------------------------------
| EBITDA excl | 1 2 | 1 6 | 1 2 | 1 3 | 455 | 445. | 382. | -16. | -14. |  6.2 |
| uding NRI   | 79. | 97. | 67. | 45. |  .3 |    2 |    6 |    0 |    1 |      |
|             |   8 |   4 |   8 |   9 |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| Operating p | 439 | 884 | 666 | 831 | 246 | 252. | 252. |  2.4 | -0.2 | 24.8 |
| rofit exclu |  .4 |  .4 |  .6 |  .6 |  .2 |    4 |    0 |      |      |      |
| ding NRI    |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| NRI (operat | -22 | -14 | -17 | -53 | -16 | 24.4 | -549 | -237 |  n/a | -199 |
| ional)      | 9.2 | 2.9 | 9.5 | 7.0 | 3.0 |      |   .4 |   .1 |      |   .2 |
--------------------------------------------------------------------------------
| Operating m | 3.9 | 6.8 | 6.9 | 8.3 | 7.7 |  7.5 |  7.8 |  1.3 |  4.0 | 20.3 |
| argin exclu |     |     |     |     |     |      |      |      |      |      |
| ding NRI, % |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| Operating p | 210 | 741 | 487 | 294 | 83. | 276. | -297 |  n/a |  n/a | -39. |
| rofit       |  .2 |  .5 |  .1 |  .6 |   2 |    8 |   .4 |      |      |    5 |
--------------------------------------------------------------------------------
| Net financi | -10 | -30 | -10 | -12 | -24 | -56. | -26. | -8.9 | 52.0 |  n/m |
| al items1)  | 4.9 |  .3 |  .7 | 1.7 |  .7 |    1 |    9 |      |      |      |
--------------------------------------------------------------------------------
| Profit befo | 334 | 691 | 525 | 709 | 221 | 196. | 225. |  1.6 | 14.7 | 35.0 |
| re tax and  |  .6 |  .1 |  .9 |  .9 |  .5 |    3 |    1 |      |      |      |
| minority in |     |     |     |     |     |      |      |      |      |      |
| terests exc |     |     |     |     |     |      |      |      |      |      |
| luding NRI  |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| Profit befo | 105 | 711 | 476 | 172 | 58. | 220. | -324 |  n/a |  n/a | -63. |
| re tax and  |  .4 |  .2 |  .4 |  .9 |   5 |    7 |   .3 |      |      |    7 |
| minority in |     |     |     |     |     |      |      |      |      |      |
| terests     |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| Net profit  | 266 | 550 | 397 | 551 | 162 | 153. | 178. |  9.7 | 16.6 | 38.6 |
| for the per |  .2 |  .7 |  .5 |  .0 |  .8 |    2 |    6 |      |      |      |
| iod excludi |     |     |     |     |     |      |      |      |      |      |
| ng NRI      |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| Net profit  | 76. | 700 | 398 | 122 | 93. | 179. | -264 |  n/a |  n/a | -69. |
| for the per |   7 |  .4 |  .1 |  .3 |   1 |    2 |   .1 |      |      |    3 |
| iod         |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS from co | 0.3 | 0.6 | 0.5 | 0.6 | 0.2 | 0.19 | 0.23 |  9.5 | 21.1 | 38.0 |
| ntinuing op |   3 |   9 |   0 |   9 |   1 |      |      |      |      |      |
| erations ex |     |     |     |     |     |      |      |      |      |      |
| cluding NRI |     |     |     |     |     |      |      |      |      |      |
| , Basic, EU |     |     |     |     |     |      |      |      |      |      |
| R           |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| EPS from co | 0.0 | 0.8 | 0.5 | 0.1 | 0.1 | 0.22 | -0.3 |  n/a |  n/a | -70. |
| ntinuing op |   9 |   8 |   0 |   5 |   2 |      |    3 |      |      |    0 |
| erations, B |     |     |     |     |     |      |      |      |      |      |
| asic, EUR   |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| CEPS from c | 1.4 | 1.8 | 1.3 | 1.4 | 0.4 | 0.46 | 0.48 | -2.0 |  4.3 | 10.4 |
| ontinuing o |   6 |   4 |   4 |   8 |   9 |      |      |      |      |      |
| perations e |     |     |     |     |     |      |      |      |      |      |
| xcluding NR |     |     |     |     |     |      |      |      |      |      |
| I, EUR      |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| ROCE from c | 4.7 | 8.7 | 9.0 | 10. | 10. |  9.6 |  9.4 | -6.0 | -2.1 | 17.8 |
| ontinuing o |     |     |     |   6 |   0 |      |      |      |      |      |
| perations e |     |     |     |     |     |      |      |      |      |      |
| xcluding NR |     |     |     |     |     |      |      |      |      |      |
| I, %        |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Opera |     |     |     |     |     |      |      |      |      |      |
| tions       |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------
| EPS from to | -0. | 0.7 | 0.4 | -0. | 0.0 | 0.18 | -0.5 |  n/a |  n/a |  n/a |
| tal operati |  14 |   4 |   1 |  10 |   7 |      |    6 |      |      |      |
| ons, Basic, |     |     |     |     |     |      |      |      |      |      |
|  EUR        |     |     |     |     |     |      |      |      |      |      |
--------------------------------------------------------------------------------

1)  Includes capital gains of EUR 130.0 million (sale of Sampo shares) in       
Q1/2006, EUR 33.0 million (sale of Finnlines shares) in Q4/2006 totalling to EUR
163.0 million in 2006.                                                          
NRI = Non-recurring items                                                       
CEPS = (Net profit for the period + depreciation and amortisation)/average      
number of shares                                                                
Non-recurring items are exceptional transactions that are not related to normal 
business operations. 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.    


Reconciliation of Operating Profit, Continuing Operations                       
--------------------------------------------------------------------------------
| EUR million    | Q1-Q | Q1-Q | Chang | Q3/06 | Q2/07 | Q3/07 | Chang | Chang |
|                | 3/06 | 3/07 | e % Q |       |       |       | e % Q | e % Q |
|                |      |      | 1-Q3/ |       |       |       | 3/07- | 3/07- |
|                |      |      | 07-Q1 |       |       |       | Q3/06 | Q2/07 |
|                |      |      | -Q3/0 |       |       |       |       |       |
|                |      |      |     6 |       |       |       |       |       |
--------------------------------------------------------------------------------
| Profit from op | 586. | 688. |       | 203.6 | 211.1 | 189.6 |       |       |
| erations, excl |    0 |    1 |       |       |       |       |       |       |
| . NRI          |      |      |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Associated com | 62.0 | 109. |       |  13.1 |  20.0 |  65.5 |       |       |
| panies*        |      |    6 |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Profit from Op | 648. | 797. |  23.1 | 216.7 | 231.1 | 255.1 |  17.7 |  10.4 |
| erations Total |    0 |    7 |       |       |       |       |       |       |
| , excl. NRI    |      |      |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Non-operative  | 18.6 | 33.9 |       |  29.5 |  21.3 | - 3.1 |       |       |
| Items**        |      |      |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Operating Prof | 666. | 831. |  24.8 | 246.2 | 252.4 | 252.0 |   2.4 |  -0.2 |
| it, excl NRI   |    6 |    6 |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| NRI            | -179 | -537 |       | -163. |  24.4 | -549. |       |       |
|                |   .5 |   .0 |       |     0 |       |     4 |       |       |
--------------------------------------------------------------------------------
| Operating Prof | 487. | 294. | -39.5 |  83.2 | 276.8 | -297. |   n/m |   n/m |
| it, as reporte |    1 |    6 |       |       |       |     4 |       |       |
| d              |      |      |       |       |       |       |       |       |
--------------------------------------------------------------------------------

*) Q1-Q3/07 and Q3/07 include EUR 48.0 million from the non-cash fair valuation 
of biological assets (forest) of Tornator Oy. Corresponding Profit from         
Operations Total, excl. NRI  figures for Q1/07 and Q2/07 excluding fair value   
change are EUR 749.8 million and EUR 207.1 million respectively                 
**) Non-Operative Items include fair valuation of Total Return Swaps, synthetic 
options and CO2 emission rights                                                 

The share of associated company results, which are included in continuing       
operations, amounted to EUR 65.5 (EUR 13.1) million. Most of the increase, EUR  
48.0 million, comes from the IAS 41 fair valuation of Tornator Oy forest asset  
holdings due to higher wood prices. The results of associated companies are     
being reported as part of operating profit from the third quarter of 2007       
onwards and divided between the relevant segments, as these companies are       
directly connected to the value chain. Previous quarters have been adjusted     
accordingly.                                                                    

Operating profit includes a negative net effect of EUR 3.1 million (positive EUR
29.5 million) from the accounting of share-based compensation, Total Return     
Swaps (TRS) and CO2 emission rights. These non-operational items are reported in
the segment Other.                                                              
                                                                                
Non-recurring items from continuing operations had a net impact of EUR -549.4   
million (EUR -163.0 million) on operating profit. Fixed asset and goodwill      
impairment charges totalled EUR -559.4 million. The impairment charges arise    
from a number of factors including the reorganisation into seven separate       
business areas, the rising trend in wood costs, the poor outlook for magazine   
paper, rising interest rates and adverse currency movements. The capital gain of
EUR 10.0 million on the sale of the site real estate of Reisholz Mill, which is 
to be closed down by the end of 2007, is recorded as a non-recurring item.      

Net financial items from continuing operations were EUR -26.9 (EUR -24.7)       
million. Net interest expenses decreased to EUR 38.9 (EUR 40.0) million and net 
foreign exchange losses on borrowings, currency derivatives and bank accounts   
were EUR 0.4 (positive EUR 4.0) million. Other financial items totalled EUR 12.4
(EUR 11.3) million, mainly arising from the fair valuation of financial items.  

Profit before tax and minority interests from continuing operations excluding   
non-recurring items increased by EUR 3.6 million to EUR 225.1 million and profit
before tax amounted to EUR -324.3 (EUR 58.5) million including non-recurring    
items.                                                                          

Net taxes from continuing operations including non-recurring items totalled EUR 
60.2 (EUR 34.6) million, leaving a net loss for the quarter of EUR 264.1        
(positive EUR 93.1) million.                                                    

Earnings per share from continuing operations excluding non-recurring items     
increased by EUR 0.02 to EUR 0.23. Earnings per share from continuing operations
including non-recurring items were EUR -0.33 (EUR 0.12). Cash earnings per share
from continuing operations were EUR 0.48 (EUR 0.49) excluding non-recurring     
items.                                                                          
                                                                                
The return on capital employed from continuing operations was 9.4% (10.0%)      
excluding non-recurring items. Capital employed was EUR 10 696.2 million on 30  
September 2007, a net decrease of EUR 1 037.1 million, mainly due to            
restructuring of the Group.                                                     

January-September 2007 Results (compared with the same period in 2006)          
Sales from continuing operations at EUR 10 000.9 million were 3.8% higher than  
in the first nine months of 2006, mainly due to higher prices for wood products 
and increased deliveries in all segments except Fine Paper, where deliveries    
were lower mainly due to the permanent shutdown of Berghuizer PM 7 in April 2007
and the divestment of Celbi Pulp Mill in July 2006, and Consumer Board, where   
deliveries were lower mainly due to several standstills at Enocell Pulp Mill    
during the period. Newsprint and Magazine Paper deliveries were higher, largely 
due to the acquisition of Arapoti Mill in September 2006. Industrial Packaging  
sales were higher, mainly due to higher sales prices and stronger market demand.

Operating profit from continuing operations excluding non-recurring items       
increased by EUR 165.0 million to EUR 831.6, million and was clearly higher in  
Wood Products due to higher sales prices, which more than offset wood cost      
increases. Operating profit was lower in Consumer Board, mainly due to higher   
wood costs and maintenance costs, and production curtailments at Enocell Pulp   
Mill. Operating profit was lower in Newsprint despite higher newsprint prices,  
because wood and recycled paper costs rose. Operating profit was lower in       
Magazine Paper due to the same reasons and lower sales prices. Operating profit 
was higher in Fine Paper because higher office paper prices more than offset    
higher maintenance costs and the divested Celbi Pulp Mill's EUR 29.1 million    
operating profit in 2006. Operating profit was higher in Industrial Packaging   
mainly due to higher prices.                                                    

Changes in exchange rates, mainly depreciation of the US dollar, decreased      
operating profit from continuing operations by some EUR -40 million compared    
with the first nine months of 2006.                                             

The share of associated company results, which are included in continuing       
operations, amounted to EUR 109.6 (EUR 62.0) million; the main contributions    
were from Bergvik Skog and Tornator, with EUR 48.0 million coming from the IAS  
41 fair valuation of Finnish forest asset holdings.                             

Net financial items from continuing operations items were EUR -121.7 (EUR -10.7)
million. The difference is mainly due to a non-recurring capital gain of EUR    
130.0 million from the sale of shares in Sampo Oyj in the first quarter of 2006 
and from the fair valuations of financial instruments.                          

Profit before tax and minority interests from continuing operations excluding   
non-recurring items increased by EUR 184.0 million to EUR 709.9 million.        

Net taxes totalled EUR 50.6 (EUR 78.3) million.                                 

Earnings per share from continuing operations excluding non-recurring items     
increased by EUR 0.19 to EUR 0.69. Earnings per share from continuing operations
including non-recurring items were EUR 0.15 (EUR 0.50).                         

Discontinued Operations                                                         
Stora Enso North America has been classified as a discontinued operation        
according to IFRS, so its net result is reported in a single line after the net 
profit of continuing operations. The discontinued result includes the expected  
loss on disposal but excludes cumulative exchange rate differences and equity   
hedges.                                                                         

The final result on disposal is subject to exchange rate and fair value changes 
and the financial results of the operations of Stora Enso North America before  
the actual divestment date, so the final outcome of the transaction is subject  
to change. Assets and liabilities of discontinued operations are presented in   
one line under current assets and in one line under current liabilities.        

The operating profit from discontinued operations for the first nine months of  
2007 was EUR -15.8 (EUR -10.1) million excluding EUR 32.4 (EUR -14.2) million of
NRI. The expected loss on disposal is EUR 20.3 million, net of positive         
cumulative exchange differences and equity hedges. This expected loss on        
disposal is based on the exchange rates as at 30 September 2007.                

Q3/2007 Results (compared with Q2/2007)                                         
Sales from continuing operations at EUR 3 234.5 million were 3.6% lower than the
previous quarter's EUR 3 355.9 million. Deliveries increased in Magazine Paper, 
decreased in Wood Products, Consumer Board and Industrial Packaging, and were   
almost unchanged in the other segments.                                         

Operating profit from continuing operations excluding non-recurring items were  
unchanged at EUR 252.0 million (EUR 252.4) million, which is 7.8% of sales.     
Operating profit decreased in Wood Products, mainly due to increased wood costs 
and lower deliveries partly related to seasonal slowdown in demand, but         
increased slightly in Magazine Paper and Fine Paper.                            

Changes in exchange rates, mainly depreciation of the US dollar, decreased      
operating profit from continuing operations by some EUR 12 million compared with
the previous quarter.                                                           

Profit before tax from continuing operations amounted to EUR 225.1 (EUR 196.3)  
million excluding non-recurring items and EUR -324.3 (EUR 220.7) million        
including non-recurring items.                                                  

Earnings per share from continuing operations were EUR 0.23 (EUR 0.19) excluding
non-recurring items and EUR -0.33 (EUR 0.22) including non-recurring items. Cash
earnings per share from continuing operations were EUR 0.48 (EUR 0.46) excluding
non-recurring items.                                                            

The return on capital employed from continuing operations was 9.4% (9.6%)       
excluding non-recurring items. Capital employed was EUR 10 696.2 million on 30  
September 2007, a net decrease of EUR 1 894.6 million mainly due to             
restructuring of the Group and fixed asset and goodwill impairments.            

Capital Structure                                                               
--------------------------------------------------------------------------------
| EUR million             | 31 Dec  | 30 Sep  | 30 Jun 0 | 30 Sep 0 | 30 Sep 0 |
|                         |      06 |      06 |        7 | 7 incl.  | 7 excl.  |
|                         |         |         |          |     SENA |     SENA |
--------------------------------------------------------------------------------
| Fixed assets            | 11 234. | 10 956. | 11 029.5 | 10 200.6 |  8 478.6 |
|                         |       7 |       2 |          |          |          |
--------------------------------------------------------------------------------
| Discontinued operations |         |         |          |          |    265.4 |
--------------------------------------------------------------------------------
| Associated companies    |   805.2 |   782.1 |    907.3 |    963.6 |    963.6 |
--------------------------------------------------------------------------------
| Operative working capit | 2 183.6 | 2 314.4 |  2 497.4 |  2 527.3 |  2 338.3 |
| al                      |         |         |          |          |          |
--------------------------------------------------------------------------------
| Non-current interest-fr | -1 204. | -1 352. |   -954.3 |   -929.4 |   -615.7 |
| ee items, net           |       0 |       3 |          |          |          |
--------------------------------------------------------------------------------
| Operating Capital Total | 13 019. | 12 700. | 13 479.9 | 11 762.1 | 11 430.2 |
|                         |       5 |       4 |          |          |          |
--------------------------------------------------------------------------------
| Net tax liabilities     |  -873.4 |  -967.1 |   -889.1 |   -793.3 |   -734.0 |
--------------------------------------------------------------------------------
| Capital Employed        | 12 146. | 11 733. | 12 590.8 | 11 968.8 | 10 696.2 |
|                         |       1 |       3 |          |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to  | 7 799.6 | 7 162.3 |  8 052.9 |  7 592.6 |  7 023.3 |
| Company shareholders    |         |         |          |          |          |
--------------------------------------------------------------------------------
| Equity in discontinued  |         |         |          |          |    569.3 |
| operations              |         |         |          |          |          |
--------------------------------------------------------------------------------
| Minority interests      |   103.5 |    91.8 |    117.0 |     43.6 |     43.6 |
--------------------------------------------------------------------------------
| Net interest-bearing li | 4 243.0 | 4 479.2 |  4 420.9 |  4 332.6 |  3 363.9 |
| abilities               |         |         |          |          |          |
--------------------------------------------------------------------------------
| Discontinued operation  |         |         |          |          |   -303.9 |
--------------------------------------------------------------------------------
| Financing Total         | 12 146. | 11 733. | 12 590.8 | 11 968.8 | 10 696.2 |
|                         |       1 |       3 |          |          |          |
--------------------------------------------------------------------------------

SENA = Stora Enso North America                                                 

Financing (compared with Q2/07)                                                 
Cash flow from continuing operations was EUR 319.7 (EUR 368.6) million and cash 
flow after investing activities EUR 122.0 (EUR 191.3) million compared with the 
second quarter of 2007. Cash flow from continuing operations decreased as       
profitability declined.                                                         

At the end of the period, interest-bearing net liabilities from continuing      
operations were EUR 3 060.0 million, a decrease of EUR 1 360.9 million due to   
restructuring of the Group. Unutilised credit facilities and cash and           
cash-equivalent reserves totalled EUR 1.6 billion.                              

Group Shareholders' equity amounted to EUR 7 592.6 million or EUR 9.63 (EUR     
10.21) per share, compared with the market capitalisation on the Helsinki Stock 
Exchange on 30 September 2007 of EUR 10.8 billion.                              

The debt/equity ratio at 30 September 2007 was 0.57 (0.55); excluding Stora Enso
North America, it was 0.44. The currency effect on equity was negative EUR 12.2 
million net of the hedging of equity translation risks.                         

Cash Flow                                                                       
--------------------------------------------------------------------------------
| EUR million | 200 | Q1-Q | Q1-Q | Q3/0 | Q2/0 | Q3/0 | Chang | Chang | Chang |
|             |   6 | 3/06 | 3/07 |    6 |    7 |    7 | e % Q | e % Q | e % Q |
|             |     |      |      |      |      |      | 3/07  | 3/07  | 1-Q3/ |
|             |     |      |      |      |      |      | - Q3/ | - Q2/ | 07 -  |
|             |     |      |      |      |      |      |    06 |    07 | Q1-Q3 |
|             |     |      |      |      |      |      |       |       |   /06 |
--------------------------------------------------------------------------------
| Continuing  |     |      |      |      |      |      |       |       |       |
| Operations  |     |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Operating p | 741 | 487. | 294. | 83.2 | 276. | -297 |       |       |       |
| rofit       |  .5 |    1 |    6 |      |    8 |   .4 |       |       |       |
--------------------------------------------------------------------------------
| Adjustments | 780 | 564. | 1 06 | 123. | 171. | 672. |       |       |       |
| *           |  .8 |    0 |  1.8 |    6 |    4 |    2 |       |       |       |
--------------------------------------------------------------------------------
| Change in w | 191 | 120. | -446 | 343. | -79. | -55. |       |       |       |
| orking capi |  .4 |    9 |   .4 |    1 |    6 |    1 |       |       |       |
| tal         |     |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Cash Flow f | 1 7 | 1 17 | 910. | 549. | 368. | 319. | -41.9 | -13.3 | -22.4 |
| rom Operati | 13. |  2.0 |    0 |    9 |    6 |    7 |       |       |       |
| ons         |   7 |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Capital exp | -53 | -369 | -479 | -121 | -177 | -197 |       |       |       |
| enditure    | 5.0 |   .4 |   .7 |   .0 |   .3 |   .7 |       |       |       |
--------------------------------------------------------------------------------
| Cash Flow a | 1 1 | 802. | 430. | 428. | 191. | 122. | -71.6 | -36.2 | -46.4 |
| fter Invest | 78. |    6 |    3 |    9 |    3 |    0 |       |       |       |
| ing Activit |   7 |      |      |      |      |      |       |       |       |
| ies         |     |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Discontinue |     |      |      |      |      |      |       |       |       |
| d Operation |     |      |      |      |      |      |       |       |       |
| s           |     |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Cash flow f | 152 | 91.1 | 36.7 | 44.0 |  8.5 | 23.5 |       |       |       |
| rom a disco |  .6 |      |      |      |      |      |       |       |       |
| ntinued ope |     |      |      |      |      |      |       |       |       |
| ration afte |     |      |      |      |      |      |       |       |       |
| r investing |     |      |      |      |      |      |       |       |       |
| activities  |     |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Total Cash  | 1 3 | 893. | 467. | 472. | 199. | 145. | -69.2 | -27.2 | -47.7 |
| Flow        | 31. |    7 |    0 |    9 |    8 |    5 |       |       |       |
|  after Inve |   3 |      |      |      |      |      |       |       |       |
| sting Activ |     |      |      |      |      |      |       |       |       |
| ities       |     |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------

* Adjustments include depreciations, other non-cash income and expenses and     
capital gains and losses which are included in proceeds from the sale of fixed  
assets and shares.                                                              

Capital Expenditure for January­-September 2007                                 
Capital expenditure for the first nine months of 2007 totalled EUR 507.3        
million, which is 66.8% of scheduled depreciation. The Group's total capital    
expenditure for 2007 is expected to be in range of EUR 800-850 million.         

The main projects during the first nine months were PM6 at Huatai in China (EUR 
54.9 million), land acquisitions in South America (EUR 26.3 million), the third 
corrugated board plant in Russia (EUR 24.6 million), plantations at Guangxi in  
China (EUR 23.5 million), and woodhandling (EUR 22.7 million) and PM 3 (EUR 20.6
million) at Varkaus Mill in Finland.                                            

Short-term Risks and Uncertainties                                              
Short-term risks and uncertainties are further increases in wood and recycled   
fibre costs and weakening of the US dollar.                                     

Near-term Market Outlook                                                        
In Europe economic activity is expected to remain stable, although uncertainty  
is growing. The market outlook continues to be challenging and the sharp        
depreciation of the US dollar is further increasing competition in the          
marketplace. Moderate demand for the Group's products is anticipated, with a    
slight seasonal improvement in some of the business areas.                      

Demand for newsprint is forecast to be flat and prices unchanged, according to  
annual agreements. Magazine paper is benefiting from seasonally improved demand,
which is expected to stay firm. However, market conditions in Europe will remain
difficult and affected by US dollar weakness. Prices have stabilised, and some  
increases for non-contractual business in coated magazine paper are predicted,  
but no change in uncoated magazine paper prices is foreseen. Forecasts for fine 
paper demand and price increases are moderating. Flat demand for consumer board 
is anticipated, with price rises partly offset by US dollar weakness. Demand for
industrial packaging should remain good, supporting some further price          
increases.                                                                      

Following the very strong first half of 2007, markets for wood products are now 
oversupplied, rapidly depressing the outlook for deliveries and prices. The     
outlook for the next two quarters is also impaired by a temporary slowdown in   
demand in Japan. Raw material costs in Finland, Russia and the Baltic States are
at record highs.                                                                

In Latin America coated magazine paper demand and prices are expected to improve
slightly. In China demand for coated fine paper remains moderate, although some 
prices are rising.                                                              

Stora Enso maintains its cost inflation forecast of about 3.5% for the full year
2007.                                                                           

Third Quarter Events                                                            

July                                                                            
Stora Enso announced a quality-driven investment of EUR 15 million to upgrade   
board manufacturing at its Imatra mills in Finland. The annual production       
capacity of board machine 5 will be increased from 240 000 to 250 000 tonnes of 
liquid packaging board (LPB) in a project started in July 2007 and to be        
completed in September 2008.                                                    

Stora Enso decided to start a pre-feasibility study for a pulp and paper mill   
complex in Nizhny Novgorod, Russia, which will be undertaken in close           
co-operation with the Russian government. The objective is to manufacture paper 
for Russian consumers from Russian wood - in Russia.                            

August                                                                          
Stora Enso announced that it had acquired 28% of the shares in Stora Enso Poland
(formerly Intercell S.A.) from the State of Poland at a price of EUR 64 million.
Following this acquisition, Stora Enso holds 95% of the shares in the company.  
The remaining shares, owned by the Polish State, will be distributed to current 
and retired employees of Stora Enso Poland. Stora Enso intends to purchase these
remaining shares as soon as feasible. Ongoing analyses include a study into     
securing the containerboard supply for Stora Enso's corrugated packaging plants 
by possibly building a new containerboard machine.                              

September                                                                       
Stora Enso and Arauco concluded their exclusive negotiations and reached        
agreement for Stora Enso to sell 100% of the Arapoti sawmill in Brazil, 80% of  
the shares of the forest holding company and 20% of the shares of the coated    
paper mill company to Arauco. The transactions are expected to be completed by  
the end of October 2007.                                                        

Stora Enso announced that it will divest its Reisholz Mill site real estate to  
Slough Estates Commercial Properties, a fully owned subsidiary of SEGRO plc, a  
Real Estate Investment Trust (REIT) based in the United Kingdom.  As announced  
on 4 October 2006, Stora Enso will close down Reisholz Mill by the end of 2007. 
The mill's two paper machines will cease production by year end and will then be
scrapped.                                                                       

Inspections by Competition Authorities                                          
On 19 July 2007, following a jury trial in the US Federal District Court in     
Hartford, Connecticut, Stora Enso was found not guilty of charges relating to   
the sale of coated magazine paper in the USA in 2002 and 2003.                  
Coincident with this case, Stora Enso has been named in a number of class action
lawsuits filed in the USA.                                                      

As a result of an investigation, the Finnish Competition Authority has proposed 
to the Finnish Market Court that a fine of EUR 30 million be imposed on Stora   
Enso for violating competition laws in the purchasing of wood in Finland in the 
period from 1997 to 2004. Stora Enso considers the proposal groundless.         

No provision has been made in Stora Enso's accounts for the above-mentioned     
investigation and lawsuits.                                                     

Changes in Group Composition                                                    
On 21 September 2007 Stora Enso signed a definitive agreement to sell its North 
American subsidiary Stora Enso North America, Inc to NewPage Holding            
Corporation. The combined company, to be called NewPage, will be among the North
American leaders in its field. The transaction is expected to be finalised      
during the first quarter of 2008, subject to customary regulatory approvals.    
Stora Enso will hold 19.9% of the new company shares. They are considered as a  
financial investment.                                                           

Changes in Group Management and Organisational Structure                        
Kai Korhonen relinquished the position of Senior Executive Vice President,      
Packaging Boards and member of the Executive Management Group (EMG) on 31 August
2007. He will continue to undertake special assignments for CEO Jouko Karvinen  
until the end of 2007.                                                          

Jussi Huttunen, Senior Executive Vice President, Market Services left Stora Enso
in July 2007.                                                                   

Following his special assignments period, former CEO Jukka Härmälä retired from 
Stora Enso at the end of August 2007.                                           

On 5 September 2007 Stora Enso announced the reorganisation of its operations   
with immediate effect from four divisions into the following seven current      
business areas: Fine Paper, Merchants, Consumer Board, Industrial Packaging,    
Magazine Paper, Newsprint and Wood Products, plus North America, which was      
divested later that month as noted above. Following this reorganisation, Stora  
Enso has a single management group called the Group Executive Team (GET). In    
addition to CEO Jouko Karvinen, the other GET members are:                      
Hannu Ryöppönen, Deputy CEO and CFO                                             
Hannu Alalauri, EVP Magazine Paper                                              
Aulis Ansaharju, EVP Fine Paper, Country Manager Finland                        
Mats Nordlander, EVP Consumer Board, Merchants and Market Services              
Veli-Jussi Potka, EVP Industrial Packaging                                      
Elisabet Salander Björklund, EVP Wood Products, Wood Supply and Pulp Supply     
Juha Vanhainen, EVP Newsprint                                                   
Christer Ågren, EVP Corporate Services, Country Manager Sweden                  
Bernd Rettig, EVP Technology and R&D, Operations Improvement, Logistics, Energy 
and Investments, Country Manager Germany                                        

Share Capital                                                                   
During the quarter 3 400 A shares were converted into R shares. The conversion  
was recorded in the Finnish Trade Register on 14 September 2007.                

During the quarter the Company allocated 3 854 repurchased R shares under the   
terms of the Stora Enso North America Option Plan.                              

On 30 September 2007 Stora Enso had 177 814 410 A shares and 611 724 089 R      
shares in issue, of which the Company held no A shares and 934 668 R shares with
a nominal value of EUR 1.6 million. The holding represents 0.12% of the         
Company's share capital and 0.04% of the voting rights.                         

This report is unaudited.                                                       

Helsinki, 25 October 2007                                                       
Stora Enso Oyj                                                                  
Board of Directors                                                              
Segments Q3/2007 compared with Q3/2006                                          


Newsprint                                                                       
--------------------------------------------------------------------------------
| EUR mil | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Change |
| lion    |      |    6 |    7 |    7 |   /06 |   /07 | e % Q | e % Q | % Q1-Q |
|         |      |      |      |      |       |       | 3/07- | 3/07- | 3/07-Q |
|         |      |      |      |      |       |       | Q3/06 | Q2/07 | 1-Q3/0 |
|         |      |      |      |      |       |       |       |       |      6 |
--------------------------------------------------------------------------------
| Sales   | 1 70 | 427. | 429. | 430. | 1 255 | 1 298 |   0.7 |   0.0 |    3.4 |
|         |  4.0 |    2 |    9 |    0 |    .3 |    .6 |       |       |        |
--------------------------------------------------------------------------------
| Operati | 232. | 61.0 | 50.2 | 52.2 | 174.5 | 163.5 | -14.4 |   4.0 |   -6.3 |
| ng prof |    1 |      |      |      |       |       |       |       |        |
| it*     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| % of sa | 13.6 | 14.3 | 11.7 | 12.1 |  13.9 |  12.6 | -15.4 |   3.4 |   -9.4 |
| les     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| ROOC, % | 16.7 | 17.2 | 14.7 | 15.6 |  16.6 |  16.0 |  -9.3 |   6.1 |   -3.6 |
| **      |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Deliver | 3 09 |  765 |  749 |  753 | 2 279 | 2 258 |  -1.6 |   0.5 |   -0.9 |
| ies, 1  |    1 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Product | 3 09 |  791 |  746 |  795 | 2 309 | 2 326 |   0.5 |   6.6 |    0.7 |
| ion, 1  |    6 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------

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

Newsprint sales were EUR 430.0 million, roughly on a similar level compared with
the third quarter of 2006. Operating profit was EUR 52.2 million, 14% lower than
a year earlier due to price rises for raw materials such as wood and recovered  
paper, and unfavourable trends in exchange rates.                               

Newsprint production will be curtailed during the fourth quarter of 2007 to     
reduce inventory level.                                                         

Markets                                                                         
Compared with Q3/2006                                                           
In Europe demand for newsprint was slightly weaker than a year earlier as       
advertising and paid newspaper circulations decreased, although circulations of 
free newspapers increased. Prices, but also producer inventories, were higher   
than a year ago.                                                                

Compared with Q2/2007                                                           
In Europe demand weakened as circulations and print advertising declined, but   
prices remained stable. Imports into Europe, mainly from Canada, have led to a  
further increase in producer inventories in Europe.                             

Magazine Paper                                                                  
--------------------------------------------------------------------------------
| EUR mil | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Change |
| lion    |      |    6 |    7 |    7 |   /06 |   /07 | e % Q | e % Q |  % Q1- |
|         |      |      |      |      |       |       | 3/07- | 3/07- | Q3/07- |
|         |      |      |      |      |       |       | Q3/06 | Q2/07 | Q1-Q3/ |
|         |      |      |      |      |       |       |       |       |     06 |
--------------------------------------------------------------------------------
| Sales   | 2 22 | 570. | 552. | 587. | 1 631 | 1 706 |   2.9 |   6.2 |    4.6 |
|         |  0.3 |    7 |    9 |    3 |    .0 |    .8 |       |       |        |
--------------------------------------------------------------------------------
| Operati | 70.7 | 12.0 |  9.6 | 17.0 |  48.3 |  39.6 |  41.7 |  77.1 |  -18.0 |
| ng prof |      |      |      |      |       |       |       |       |        |
| it*     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| % of sa |  3.2 |  2.1 |  1.7 |  2.9 |   3.0 |   2.3 |  38.1 |  70.6 |  -23.3 |
| les     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| ROOC, % |  3.5 |  2.4 |  1.9 |  3.6 |   3.2 |   2.7 |  50.0 |  89.5 |  -15.6 |
| **      |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Deliver | 2 76 |  708 |  717 |  774 | 2 004 | 2 208 |   9.3 |   7.9 |   10.2 |
| ies, 1  |    5 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Product | 2 77 |  673 |  739 |  745 | 2 035 | 2 221 |  10.7 |   0.8 |    9.1 |
| ion, 1  |    2 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------

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

Magazine paper sales were EUR 587.3 million, up 3% on the third quarter of 2006 
mainly because Arapoti Mill was consolidated from the beginning of September    
2006. Operating profit was up on the previous year at EUR 17.0 million, as      
higher coated magazine paper deliveries and restructuring benefits outweighed   
lower prices, unfavourable exchange rate trends and price rises for pulp, wood  
and recovered paper, the main raw materials.                                    

As announced in October 2006, the uncoated magazine paper mill at Reisholz in   
Germany will permanently cease production in December 2007.                     

In the fourth quarter of 2007 there will be production curtailments at the pulp 
mills at Kemijärvi and Sunila to reduce marginal wood costs through volume      
reduction.                                                                      

Markets                                                                         
Compared with Q3/2006                                                           
In Europe demand for magazine paper was clearly stronger than a year ago, but   
prices were lower in all grades. Producer inventories were unchanged in uncoated
grades, but lower in coated grades.                                             

In Latin America demand for coated magazine paper was much stronger, but prices 
were lower than a year earlier.                                                 

Compared with Q2/2007                                                           
In Europe demand for magazine paper seasonally strengthened, especially for     
uncoated grades, and producer inventories decreased.  Prices remained virtually 
unchanged for all grades, but price rises for non-contractual business have been
announced for the fourth quarter.                                               

In Latin America demand improved considerably but prices declined.              

Fine Paper                                                                      
--------------------------------------------------------------------------------
| EUR mil | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Change |
| lion    |      |    6 |    7 |    7 |   /06 |   /07 | e % Q | e % Q | % Q1-Q |
|         |      |      |      |      |       |       | 3/07- | 3/07- | 3/07-Q |
|         |      |      |      |      |       |       | Q3/06 | Q2/07 | 1-Q3/0 |
|         |      |      |      |      |       |       |       |       |      6 |
--------------------------------------------------------------------------------
| Sales   | 2 26 | 538. | 522. | 529. | 1 719 | 1 629 |  -1.6 |   1.3 |   -5.2 |
|         |  1.8 |    1 |    8 |    7 |    .7 |    .5 |       |       |        |
--------------------------------------------------------------------------------
| Operati | 152. | 29.8 | 34.6 | 38.6 | 124.5 | 133.4 |  29.5 |  11.6 |    7.1 |
| ng prof |    7 |      |      |      |       |       |       |       |        |
| it*     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| % of sa |  6.8 |  5.5 |  6.6 |  7.3 |   7.2 |   8.2 |  32.7 |  10.6 |   13.9 |
| les     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| ROOC, % |  7.1 |  5.5 |  6.5 |  7.3 |   7.8 |   8.7 |  32.7 |  12.3 |   11.5 |
| **      |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Deliver | 3 02 |  736 |  689 |  696 | 2 292 | 2 145 |  -5.4 |   1.0 |   -6.4 |
| ies, 1  |    2 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Product | 3 03 |  730 |  720 |  705 | 2 295 | 2 163 |  -3.4 |  -2.1 |   -5.8 |
| ion, 1  |    2 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------


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

Fine paper sales were EUR 529.7 million, down 2% on the third quarter of 2006   
due to the permanent shutdown of Berghuizer PM 7 in April 2007. Operating profit
was EUR 38.6 million, up 30% on the third quarter of 2006 due to higher prices, 
despite increased wood costs and the EUR 2.5 million impact of the divestment of
Celbi Pulp Mill.                                                                

Markets                                                                         
Compared with Q3/2006                                                           
In Europe coated fine paper demand was slightly stronger than a year ago due to 
economic growth, but coated fine paper prices were unchanged. Industry          
inventories were lower but Stora Enso inventories were higher than a year ago.  
Uncoated fine paper demand was also slightly stronger due to economic growth,   
and uncoated fine paper prices and industry inventories were higher than a year 
ago.                                                                            

In China demand for coated fine paper was stronger and prices higher than a year
ago.                                                                            

Compared with Q2/2007                                                           
In Europe coated fine paper demand strengthened marginally for seasonal reasons,
but prices decreased slightly. Industry and Stora Enso inventories decreased.   
Uncoated fine paper demand seasonally weakened slightly, but prices continued to
rise. Industry uncoated fine paper inventories increased.                       

In China coated fine paper demand continued to strengthen and prices rose       
slightly.                                                                       

Merchants                                                                       
--------------------------------------------------------------------------------
| EUR mil | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Change |
| lion    |      |    6 |    7 |    7 |   /06 |   /07 | e % Q | e % Q | % Q1-Q |
|         |      |      |      |      |       |       | 3/07- | 3/07- | 3/07-Q |
|         |      |      |      |      |       |       | Q3/06 | Q2/07 | 1-Q3/0 |
|         |      |      |      |      |       |       |       |       |      6 |
--------------------------------------------------------------------------------
| Sales   | 1 90 | 450. | 479. | 474. | 1 399 | 1 486 |   5.4 |  -1.0 |    6.3 |
|         |  7.2 |    1 |    4 |    4 |    .0 |    .7 |       |       |        |
--------------------------------------------------------------------------------
| Operati | 32.7 |  7.7 |  8.2 |  7.9 |  20.2 |  32.7 |   2.6 |  -3.7 |   61.9 |
| ng prof |      |      |      |      |       |       |       |       |        |
| it*     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| % of sa |  1.7 |  1.7 |  1.7 |  1.7 |   1.4 |   2.2 |   0.0 |   0.0 |   57.1 |
| les     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| ROOC, % |  5.5 |  5.8 |  6.2 |  6.1 |   4.5 |   8.2 |   5.2 |  -1.6 |   82.2 |
| **      |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------

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

Sales were EUR 474.4 million, up 5% on the third quarter of 2006 mainly due to  
higher sales volumes. Sales prices were largely unchanged. Operating profit was 
EUR 7.9 million, up 3% on a year earlier due to increased sales volumes with    
stable margins and costs.                                                       

Consumer Board                                                                  
--------------------------------------------------------------------------------
| EUR mil | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Change |
| lion    |      |    6 |    7 |    7 |   /06 |   /07 | e % Q | e % Q | % Q1-Q |
|         |      |      |      |      |       |       | 3/07- | 3/07- | 3/07-Q |
|         |      |      |      |      |       |       | Q3/06 | Q2/07 | 1-Q3/0 |
|         |      |      |      |      |       |       |       |       |      6 |
--------------------------------------------------------------------------------
| Sales   | 2 33 | 603. | 570. | 562. | 1 771 | 1 721 |  -6.8 |  -1.4 |   -2.8 |
|         |  1.9 |    4 |    1 |    1 |    .7 |    .8 |       |       |        |
--------------------------------------------------------------------------------
| Operati | 240. | 64.3 | 29.0 | 27.0 | 201.5 | 128.4 | -58.0 |  -6.9 |  -36.3 |
| ng prof |    9 |      |      |      |       |       |       |       |        |
| it*     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| % of sa | 10.3 | 10.7 |  5.1 |  4.8 |  11.4 |   7.5 | -55.1 |  -5.9 |  -34.2 |
| les     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| ROOC, % | 11.9 | 12.7 |  5.9 |  5.9 |  13.3 |   9.2 | -53.5 |   0.0 |  -30.8 |
| **      |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Deliver | 2 53 |  649 |  640 |  632 | 1 928 | 1 910 |  -2.6 |  -1.3 |   -0.9 |
| ies, 1  |    7 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Product | 2 56 |  631 |  628 |  621 | 1 953 | 1 895 |  -1.6 |  -1.1 |   -3.0 |
| ion, 1  |    6 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------

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

Consumer board sales were EUR 562.1 million, down 7% on the third quarter of    
2006 as volumes decreased slightly due to planned maintenance stoppages at      
Skoghall and Imatra that were clearly longer than a year ago. Operating profit  
was EUR 27.0 million, down 58% on a year earlier due to higher costs, especially
the sharp rise in wood costs, and the planned maintenance stoppages and         
production standstills at Enocell Pulp Mill. Unfavourable exchange rate trends  
offset some of the improvement in sales prices.                                 

Markets                                                                         
Compared with Q3/2006                                                           
Deliveries were somewhat lower and prices slightly higher than a year earlier.  

Compared with Q2/2007                                                           
Deliveries decreased slightly but prices increased slightly.                    

Industrial Packaging                                                            
--------------------------------------------------------------------------------
| EUR mil | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Change |
| lion    |      |    6 |    7 |    7 |   /06 |   /07 | e % Q | e % Q |  % Q1- |
|         |      |      |      |      |       |       | 3/07- | 3/07- | Q3/07- |
|         |      |      |      |      |       |       | Q3/06 | Q2/07 | Q1-Q3/ |
|         |      |      |      |      |       |       |       |       |     06 |
--------------------------------------------------------------------------------
| Sales   | 970. | 245. | 274. | 267. | 712.2 | 808.1 |   9.2 |  -2.3 |   13.5 |
|         |    7 |    3 |    2 |    8 |       |       |       |       |        |
--------------------------------------------------------------------------------
| Operati | 85.0 | 26.1 | 29.7 | 24.9 |  62.7 |  83.9 |  -4.6 | -16.2 |   33.8 |
| ng prof |      |      |      |      |       |       |       |       |        |
| it*     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| % of sa |  8.8 | 10.6 | 10.8 |  9.3 |   8.8 |  10.4 | -12.3 | -13.9 |   18.2 |
| les     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| ROOC, % | 13.6 | 16.8 | 18.3 | 15.1 |  13.4 |  17.3 | -10.1 | -17.5 |   29.1 |
| **      |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Deliver | 1 00 |  255 |  273 |  257 |   758 |   809 |   0.8 |  -5.9 |    6.7 |
| ies, 1  |    6 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Product | 1 01 |  259 |  274 |  253 |   753 |   798 |  -2.3 |  -7.7 |    6.0 |
| ion, 1  |    4 |      |      |      |       |       |       |       |        |
| 000 t   |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------


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

Industrial packaging sales were EUR 267.8 million, up 9% on the third quarter of
2006 due to higher sales prices for containerboards and corrugated packaging,   
and increased volumes in corrugated packaging and cores, although maintenance   
and investment stoppages reduced deliveries of paper and board. Operating profit
was EUR 24.9 million, down 5% on the previous year due to the maintenance and   
investment stoppages and higher recycled fibre costs, despite the substantial   
rise in containerboard prices as demand strengthened.                           

Markets                                                                         
Compared with Q3/2006                                                           
Corrugated packaging and core prices were higher, containerboard prices         
substantially higher, and coreboard prices slightly higher than a year earlier. 
Demand was stronger than a year ago.                                            

Compared with Q2/2007                                                           
Containerboard prices rose, and corrugated packaging and coreboard prices also  
rose slightly. Demand remained good, with corrugated packaging and core         
deliveries unchanged, but paper and board deliveries were decreased by the      
maintenance and investment stoppages.                                           

Wood Products                                                                   
--------------------------------------------------------------------------------
| EUR     | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Change |
| million |      |    6 |    7 |    7 |   /06 |   /07 | e % Q | e % Q |  % Q1- |
|         |      |      |      |      |       |       | 3/07- | 3/07- | Q3/07- |
|         |      |      |      |      |       |       | Q3/06 | Q2/07 | Q1-Q3/ |
|         |      |      |      |      |       |       |       |       |     06 |
--------------------------------------------------------------------------------
| Sales   | 1 67 | 417. | 525. | 461. | 1 232 | 1 459 |  10.4 | -12.2 |   18.4 |
|         |  3.0 |    8 |    7 |    4 |    .7 |    .4 |       |       |        |
--------------------------------------------------------------------------------
| Operati | 63.4 | 22.0 | 59.3 | 37.1 |  41.1 | 151.2 |  68.6 | -37.4 |    n/m |
| ng prof |      |      |      |      |       |       |       |       |        |
| it*     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| % of sa |  3.8 |  5.3 | 11.3 |  8.0 |   3.3 |  10.4 |  50.9 | -29.2 |    n/m |
| les     |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| ROOC, % |  8.0 | 10.9 | 28.6 | 18.9 |   6.9 |  26.5 |  73.4 | -33.9 |    n/m |
| **      |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------
| Deliver | 6 55 | 1 58 | 1 76 | 1 54 | 4 898 | 4 927 |  -2.8 | -12.4 |    0.6 |
| ies, 1  |    1 |    9 |    3 |    5 |       |       |       |       |        |
| 000 m3  |      |      |      |      |       |       |       |       |        |
--------------------------------------------------------------------------------

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

Wood product sales were EUR 461.4 million, up 10% on the third quarter of 2006  
mainly due to higher sales prices. Operating profit was EUR 37.1 million, up 69%
on a year earlier as higher sales prices more than compensated for significant  
increases in raw material prices.                                               

Stora Enso Wood Products will be curtailing whitewood production in Finland     
during the fourth quarter of 2007 due to the excess inventories and very high   
wood costs.                                                                     

Markets                                                                         
Compared with Q3/2006                                                           
A year ago demand was good in all main markets in Europe, Japan, the Middle-East
and North Africa, stock levels were very low and there were shortages of raw    
material. Prices were higher in the third quarter of 2007 than a year earlier.  
Demand has stayed firm in most markets, but oversupply increased inventories.   

Compared with Q2/2007                                                           
Markets were very strong in the first half of 2007, boosting profitability      
throughout the industry. However, a temporary demand slowdown in Japan, combined
with the continued heavy oversupply in Central Europe due to winter storm Kyrill
and a seasonal slowdown in markets, rapidly led to excess stocks in all the main
market areas. Raw material costs in Finland, Russia and the Baltic States have  
reached record highs. The oversupply and excess inventories in combination with 
record high raw material costs are putting industry profit margins under rapidly
increasing pressure.                                                            




Financials                                                                      


Key Ratios                                                                      
--------------------------------------------------------------------------------
|            | 20 | 20 | Q1- | Q1-Q | Q3/0 | Q2/ | Q3/ | Chang | Chang | Chang |
|            | 05 | 06 | Q3/ | 3/07 |    6 |  07 |  07 | e % Q | e % Q | e % Q |
|            |    |    |  06 |      |      |     |     | 3/07- | 3/07- | 1-Q3/ |
|            |    |    |     |      |      |     |     | Q3/06 | Q2/07 | 07-Q1 |
|            |    |    |     |      |      |     |     |       |       | -Q3/0 |
|            |    |    |     |      |      |     |     |       |       |   6   |
--------------------------------------------------------------------------------
| Continuing |    |    |     |      |      |     |     |       |       |       |
|  Operation |    |    |     |      |      |     |     |       |       |       |
| s          |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Earnings p | 0. | 0. | 0.5 | 0.15 | 0.12 | 0.2 | -0. |   n/a |   n/a | -70.0 |
| er share ( | 09 | 88 |   0 |      |      |   2 |  33 |       |       |       |
| basic), EU |    |    |     |      |      |     |     |       |       |       |
| R          |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Earnings p | 0. | 0. | 0.5 | 0.69 | 0.21 | 0.1 | 0.2 |   9.5 |  21.1 |  38.0 |
| er share e | 33 | 69 |   0 |      |      |   9 |   3 |       |       |       |
| xcluding N |    |    |     |      |      |     |     |       |       |       |
| RI, EUR    |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Cash earni | 1. | 2. | 1.5 | 1.65 | 0.58 | 0.4 | 0.6 |   5.2 |  24.5 |   8.6 |
| ngs per sh | 34 | 24 |   2 |      |      |   9 |   1 |       |       |       |
| are (CEPS) |    |    |     |      |      |     |     |       |       |       |
| , EUR      |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| CEPS exclu | 1. | 1. | 1.3 | 1.48 | 0.49 | 0.4 | 0.4 |  -2.0 |   4.3 |  10.4 |
| ding NRI,  | 46 | 84 |   4 |      |      |   6 |   8 |       |       |       |
| EUR        |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Return on  | 2. | 7. | 6.6 |  3.8 |  3.4 | 10. | -11 |   n/a |   n/a | -42.4 |
| capital em |  3 |  3 |     |      |      |   5 |  .1 |       |       |       |
| ployed (RO |    |    |     |      |      |     |     |       |       |       |
| CE), %     |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| ROCE exclu | 4. | 8. | 9.0 | 10.6 | 10.0 | 9.6 | 9.4 |  -6.0 |  -2.1 |  17.8 |
| ding NRI,  |  7 |  7 |     |      |      |     |     |       |       |       |
| %          |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Return on  | -1 | 7. | 5.9 | -1.4 |  3.2 | 7.2 | -22 |   n/a |   n/a |   n/a |
| equity     | .4 |  7 |     |      |      |     |  .3 |       |       |       |
| (ROE), %*  |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Debt/equit | 0. | 0. | 0.6 | 0.57 | 0.63 | 0.5 | 0.5 |  -9.5 |   3.6 |  -9.5 |
| y ratio*   | 70 | 54 |   3 |      |      |   5 |   7 |       |       |       |
--------------------------------------------------------------------------------
| Equity per | 9. | 9. | 9.0 | 9.63 | 9.08 | 10. | 9.6 |   6.1 |  -5.7 |   6.1 |
|  share, EU | 16 | 89 |   8 |      |      |  21 |   3 |       |       |       |
| R*         |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Equity rat | 41 | 45 | 42. | 45.5 | 42.3 | 46. | 45. |   7.6 |  -2.6 |   7.6 |
| io, %*     | .0 | .3 |   3 |      |      |   7 |   5 |       |       |       |
--------------------------------------------------------------------------------
| Operating  | 1. | 5. | 5.1 |  2.9 |  2.6 | 8.2 | -9. |   n/a |   n/a | -43.1 |
| profit, %  |  9 |  7 |     |      |      |     |   2 |       |       |       |
| of sales   |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Operating  | 3. | 6. | 6.9 |  8.3 |  7.7 | 7.5 | 7.8 |   1.3 |   4.0 |  20.3 |
| profit exc |  9 |  8 |     |      |      |     |     |       |       |       |
| luding NRI |    |    |     |      |      |     |     |       |       |       |
| , % of sal |    |    |     |      |      |     |     |       |       |       |
| es         |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Capital ex | 1  | 58 | 403 | 507. | 128. | 187 | 211 |  64.2 |  12.9 |  25.7 |
| penditure, | 14 | 3. |  .7 |    3 |    7 |  .1 |  .3 |       |       |       |
|  EUR milli | 5. |  4 |     |      |      |     |     |       |       |       |
| on*        |  3 |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Capital em | 10 | 10 | 9 6 | 10 6 | 9 66 | 10  | 10  |  10.7 |   0.0 |  10.7 |
| ployed, EU |  0 |  2 |  64 |   96 |    4 | 692 | 696 |       |       |       |
| R million  | 49 | 21 |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Interest-b | 5  | 4  | 4 4 | 4 33 | 4 47 | 4 4 | 4 3 |  -3.3 |  -2.0 |  -3.3 |
| earing net | 08 | 24 |  79 |    3 |    9 |  21 |  33 |       |       |       |
|  liabiliti |  4 |  3 |     |      |      |     |     |       |       |       |
| es, EUR mi |    |    |     |      |      |     |     |       |       |       |
| llion*     |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Average nu | 41 | 41 | 42  | 39 8 | 42 5 | 39  | 39  |  -6.3 |   0.6 |  -6.3 |
| mber of em |  3 |  0 | 540 |   48 |   40 | 605 | 848 |       |       |       |
| ployees    | 90 | 36 |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| Average nu |    |    |     |      |      |     |     |       |       |       |
| mber of sh |    |    |     |      |      |     |     |       |       |       |
| ares (mill |    |    |     |      |      |     |     |       |       |       |
| ion)       |    |    |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
|   periodic | 79 | 78 | 788 | 788. | 788. | 788 | 788 |       |       |       |
|            | 8. | 8. |  .6 |    6 |    6 |  .6 |  .6 |       |       |       |
|            |  7 |  6 |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| cumulative | 79 | 78 | 788 | 788. | 788. | 788 | 788 |       |       |       |
|            | 8. | 8. |  .6 |    6 |    6 |  .6 |  .6 |       |       |       |
|            |  7 |  6 |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------
| cumulative | 79 | 78 | 789 | 788. | 789. | 788 | 788 |       |       |       |
| , diluted  | 9. | 8. |  .1 |    9 |    1 |  .9 |  .9 |       |       |       |
|            |  2 |  9 |     |      |      |     |     |       |       |       |
--------------------------------------------------------------------------------

NRI = Non-recurring items                                                       
* Total operations                                                              
Key Exchange Rates for the Euro                                                 
--------------------------------------------------------------------------------
| One Euro is | Closing Rate  |               | Average Rate  |                |
--------------------------------------------------------------------------------
|             |   31 Dec 06   |   30 Sep 07   |   31 Dec 06   |   30 Sep 07    |
--------------------------------------------------------------------------------
| SEK         |    9.0404     |    9.2147     |    9.2517     |     9.2365     |
--------------------------------------------------------------------------------
| USD         |    1.3170     |    1.4179     |    1.2563     |     1.3449     |
--------------------------------------------------------------------------------
| GBP         |    0.6715     |    0.6968     |    0.6819     |     0.6766     |
--------------------------------------------------------------------------------
| CAD         |    1.5281     |    1.4122     |    1.4247     |     1.4849     |
--------------------------------------------------------------------------------


Transaction Risk and Hedges in Main Currencies as at 30 September 2007          
--------------------------------------------------------------------------------
| EUR million                        |      USD |     GBP |     SEK |      JPY |
--------------------------------------------------------------------------------
| Estimated annual net operating cas |    1 000 |     600 |  -1 000 |      210 |
| h flow exposure                    |          |         |         |          |
--------------------------------------------------------------------------------
| Transaction hedges as at 30 Sep.   |      289 |     177 |    -572 |       76 |
--------------------------------------------------------------------------------
| Hedging percentage as at 30 Sep. f |      29% |     29% |     57% |      36% |
| or the next 12 months              |          |         |         |          |
--------------------------------------------------------------------------------

Condensed Consolidated Income Statement                                         
--------------------------------------------------------------------------------
| EUR million | 2006 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chan | Chan | Chan |
|             |      |    6 |    7 |    7 |   /06 |   /07 | ge % | ge % | ge % |
|             |      |      |      |      |       |       |  Q3/ |  Q3/ |  Q1- |
|             |      |      |      |      |       |       | 07-Q | 07-Q | Q3/0 |
|             |      |      |      |      |       |       | 3/06 | 2/07 | 7-Q1 |
|             |      |      |      |      |       |       |      |      | -Q3/ |
|             |      |      |      |      |       |       |      |      |  06  |
--------------------------------------------------------------------------------
| Continuing  |      |      |      |      |       |       |      |      |      |
| Operations  |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Sales       | 12 9 | 3 21 | 3 35 | 3 23 | 9 637 | 10 00 |  0.7 | -3.6 |  3.8 |
|             | 57.2 |  2.2 |  5.9 |  4.5 |    .3 |   0.9 |      |      |      |
--------------------------------------------------------------------------------
| Other opera | 372. | 233. | 40.2 | 27.2 | 331.8 |  85.7 | -88. | -32. | -74. |
| ting income |    3 |    6 |      |      |       |       |    4 |    3 |    2 |
--------------------------------------------------------------------------------
| Materials a | -7 1 | -1 8 | -1 8 | -2 1 | -5 31 | -5 92 | -18. | -13. | -11. |
| nd services | 49.7 | 20.6 | 91.0 | 48.2 |   0.7 |   8.4 |    0 |    6 |    6 |
--------------------------------------------------------------------------------
| Freight and | -1 6 | -402 | -399 | -124 | -1 21 | -920. | 69.0 | 68.8 | 24.5 |
|  sales comm | 34.0 |   .4 |   .4 |   .7 |   8.9 |     4 |      |      |      |
| issions     |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Personnel e | -1 8 | -434 | -480 | -451 | -1 43 | -1 39 | -3.9 |  6.0 |  3.0 |
| xpenses     | 90.5 |   .5 |   .3 |   .6 |   3.1 |   0.8 |      |      |      |
--------------------------------------------------------------------------------
| Other opera | -933 | -357 | -155 | -154 | -779. | -476. | 56.8 |  0.8 | 38.8 |
| ting expens |   .8 |   .6 |   .8 |   .6 |     7 |     9 |      |      |      |
| es          |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Share of re | 88.0 | 13.1 | 20.0 | 65.5 |  62.0 | 109.6 |  n/m |  n/m | 76.8 |
| sults of as |      |      |      |      |       |       |      |      |      |
| sociated    |      |      |      |      |       |       |      |      |      |
| companies   |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Depreciatio | -1 0 | -360 | -212 | -745 | -801. | -1 18 | -106 | -250 | -47. |
| n and impai | 68.0 |   .6 |   .8 |   .5 |     6 |   5.1 |   .7 |   .3 |    8 |
| rment       |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Operating P | 741. | 83.2 | 276. | -297 | 487.1 | 294.6 |  n/m |  n/m | -39. |
| rofit / (Lo |    5 |      |    8 |   .4 |       |       |      |      |    5 |
| ss)         |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Net financi | -30. | -24. | -56. | -26. | -10.7 | -121. | -8.9 | 52.0 |  n/m |
| al items    |    3 |    7 |    1 |    9 |       |     7 |      |      |      |
--------------------------------------------------------------------------------
| Profit / (L | 711. | 58.5 | 220. | -324 | 476.4 | 172.9 |  n/a |  n/a | -63. |
| oss) before |    2 |      |    7 |   .3 |       |       |      |      |    7 |
|  Tax        |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Income tax  | -10. | 34.6 | -41. | 60.2 | -78.3 | -50.6 | 74.0 |  n/a | 35.4 |
|             |    8 |      |    5 |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Net Profit  | 700. | 93.1 | 179. | -264 | 398.1 | 122.3 |  n/a |  n/a | -69. |
| / (Loss) fo |    4 |      |    2 |   .1 |       |       |      |      |    3 |
| r the Perio |      |      |      |      |       |       |      |      |      |
| d from Cont |      |      |      |      |       |       |      |      |      |
| inuing Oper |      |      |      |      |       |       |      |      |      |
| ations      |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinue |      |      |      |      |       |       |      |      |      |
| d Operation |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Loss after  | -111 | -36. | -35. | -177 | -73.7 | -197. |  n/m |  n/m |  n/m |
| tax for the |   .2 |    0 |    3 |   .0 |       |     0 |      |      |      |
|  period fro |      |      |      |      |       |       |      |      |      |
| m a discont |      |      |      |      |       |       |      |      |      |
| inued opera |      |      |      |      |       |       |      |      |      |
| tion        |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Profit  | 589. | 57.1 | 143. | -441 | 324.4 | -74.7 |  n/a |  n/a |  n/a |
| / (Loss) fo |    2 |      |    9 |   .1 |       |       |      |      |      |
| r the       |      |      |      |      |       |       |      |      |      |
| Period      |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributabl |      |      |      |      |       |       |      |      |      |
| e to:       |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Equity hold | 585. | 58.9 | 141. | -439 | 322.0 | -79.4 |  n/a |  n/a |  n/a |
| ers of the  |    0 |      |    3 |   .9 |       |       |      |      |      |
| Parent Comp |      |      |      |      |       |       |      |      |      |
| any         |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Minority in |  4.2 | -1.8 |  2.6 | -1.2 |   2.4 |   4.7 |  n/m |  n/m |  n/m |
| terests     |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
|             | 589. | 57.1 | 143. | -441 | 324.4 | -74.7 |  n/a |  n/a |  n/a |
|             |    2 |      |    9 |   .1 |       |       |      |      |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings pe |      |      |      |      |       |       |      |      |      |
| r Share     |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Basic       | 0.74 | 0.07 | 0.18 | -0.5 |  0.41 | -0.10 |  n/a |  n/a |  n/a |
| earnings pe |      |      |      |    6 |       |       |      |      |      |
| r share, EU |      |      |      |      |       |       |      |      |      |
| R           |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Diluted ear | 0.74 | 0.07 | 0.18 | -0.5 |  0.41 | -0.10 |  n/a |  n/a |  n/a |
| nings per s |      |      |      |    6 |       |       |      |      |      |
| hare, EUR   |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Earnings per Share |      |      |      |       |       |      |      |      |
|  from Continuing O |      |      |      |       |       |      |      |      |
| perations          |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Basic earni | 0.88 | 0.12 | 0.22 | -0.3 |  0.50 |  0.15 |  n/a |  n/a | -70. |
| ngs per sha |      |      |      |    3 |       |       |      |      |    0 |
| re, EUR     |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------
| Diluted ear | 0.88 | 0.12 | 0.22 | -0.3 |  0.50 |  0.15 |  n/a |  n/a | -70. |
| nings per s |      |      |      |    3 |       |       |      |      |    0 |
| hare, EUR   |      |      |      |      |       |       |      |      |      |
--------------------------------------------------------------------------------




Consolidated Statement of Recognised Income & Expense                           
--------------------------------------------------------------------------------
| EUR million                  |  2006 | Q3/06 | Q2/07 | Q3/07 | Q1-Q3 | Q1-Q3 |
|                              |       |       |       |       |   /06 |   /07 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Operations             |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Defined benefit plan actuari | 135.1 |     - |   2.6 |  -2.1 |     - |   0.5 |
| al gains / (losses)          |       |       |       |       |       |       |
--------------------------------------------------------------------------------
|   Tax on actuarial movements | -46.6 |     - |  -0.7 |   0.6 |     - |  -0.1 |
--------------------------------------------------------------------------------
| Aggregate fair value movemen | 251.6 |   6.2 | 169.7 |  -7.3 | -103. | 213.5 |
| ts in Available-for-Sale ass |       |       |       |       |     1 |       |
| ets                          |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Currency and commodity hedge | -45.3 |   3.8 |  53.8 |  17.6 |  90.1 |  33.9 |
| s                            |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Associate hedges             |  11.1 |   0.1 |   3.4 |   1.7 |   7.2 |   5.0 |
--------------------------------------------------------------------------------
| Tax on Other Comprehensive I |  50.2 |  -4.3 | -17.2 |  -4.0 |     - | -11.0 |
| ncome Movements (OCI)        |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Currency translation movemen | -86.4 |  -6.6 |  66.4 | -29.5 | -77.2 | -32.1 |
| ts on equity net investments |       |       |       |       |       |       |
|  (CTA)                       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Equity net investment hedges | 118.0 |   0.1 |  -9.1 |  11.9 |  75.9 |  34.9 |
--------------------------------------------------------------------------------
|   Tax on equity hedges       | -30.7 |     0 |   2.3 |  -3.1 | -19.7 |  -9.1 |
--------------------------------------------------------------------------------
| Net Income &                 | 357.0 |  -0.7 | 271.2 | -14.2 | -26.8 | 235.5 |
| Expense Recognised directly  |       |       |       |       |       |       |
| in Equity                    |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net profit / (loss) for the  | 589.2 |  57.1 | 143.9 | -441. | 324.4 | -74.7 |
| period                       |       |       |       |     1 |       |       |
--------------------------------------------------------------------------------
| Total Recognised Income & Ex | 946.2 |  56.4 | 415.1 | -455. | 297.6 | 160.8 |
| pense for the Period         |       |       |       |     3 |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:             |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Equity holders of the Parent | 942.0 |  58.2 | 412.5 | -454. | 295.2 | 156.1 |
| Company                      |       |       |       |     1 |       |       |
--------------------------------------------------------------------------------
| Minority interests           |   4.2 |  -1.8 |   2.6 |  -1.2 |   2.4 |   4.7 |
--------------------------------------------------------------------------------
| Total Recognised Income & Ex | 946.2 |  56.4 | 415.1 | -455. | 297.6 | 160.8 |
| pense for the Period         |       |       |       |     3 |       |       |
--------------------------------------------------------------------------------

Condensed Consolidated Cash Flow Statement                                      
--------------------------------------------------------------------------------
| EUR million                                  |      Q1-Q3/06 |      Q1-Q3/07 |
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities          |               |               |
--------------------------------------------------------------------------------
| Operating profit from continuing operations  |         462.8 |         294.6 |
--------------------------------------------------------------------------------
| Operating profit from a discontinued operati |             - |        -145.5 |
| on                                           |               |               |
--------------------------------------------------------------------------------
| Adjustments                                  |         706.6 |       1 359.2 |
--------------------------------------------------------------------------------
| Change in net working capital                |         135.1 |        -534.0 |
--------------------------------------------------------------------------------
| Change in short-term interest-bearing receiv |         -10.8 |           3.2 |
| ables                                        |               |               |
--------------------------------------------------------------------------------
| Cash Flow Generated by Operations            |       1 293.7 |         977.5 |
--------------------------------------------------------------------------------
| Net financial items                          |        -188.2 |        -110.3 |
--------------------------------------------------------------------------------
| Income taxes paid                            |        -131.6 |        -114.6 |
--------------------------------------------------------------------------------
| Net Cash Provided by Operating Activities    |         973.9 |         752.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities          |               |               |
--------------------------------------------------------------------------------
| Acquisitions of subsidiaries                 |        -335.4 |         -71.2 |
--------------------------------------------------------------------------------
| Acquisitions of associated companies         |         -19.4 |         -81.3 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets and share |         650.6 |          79.1 |
| s                                            |               |               |
--------------------------------------------------------------------------------
| Capital expenditure                          |        -403.7 |        -507.3 |
--------------------------------------------------------------------------------
| Proceeds from (payment of) the non-current r |         -17.5 |          18.1 |
| eceivables, net                              |               |               |
--------------------------------------------------------------------------------
| Net Cash Used in Investing Activities        |        -125.4 |        -562.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing Activities          |               |               |
--------------------------------------------------------------------------------
| Change in long-term liabilities              |           4.9 |        -300.6 |
--------------------------------------------------------------------------------
| Change in short-term borrowings              |        -462.1 |         393.2 |
--------------------------------------------------------------------------------
| Dividends paid                               |        -354.9 |        -354.9 |
--------------------------------------------------------------------------------
| Minority equity injections less dividends    |          -1.1 |           7.1 |
--------------------------------------------------------------------------------
| Options exercised                            |          -1.7 |          -1.2 |
--------------------------------------------------------------------------------
| Repurchase / Sale of own shares              |           0.2 |           0.2 |
--------------------------------------------------------------------------------
| Net Cash Used in Financing Activities        |        -814.7 |        -256.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Increase (Decrease) in Cash and Cash Equ |          33.8 |         -66.2 |
| ivalents                                     |               |               |
--------------------------------------------------------------------------------
| Cash and bank in acquired companies          |           1.6 |             - |
--------------------------------------------------------------------------------
| Cash and bank in sold companies              |         -19.4 |             - |
--------------------------------------------------------------------------------
| Translation  adjustment                      |          -9.0 |          -9.2 |
--------------------------------------------------------------------------------
| Net cash and cash equivalents at the beginni |         149.5 |         309.6 |
| ng of period                                 |               |               |
--------------------------------------------------------------------------------
| Net Cash and Cash Equivalents at Period End  |         156.5 |         234.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and Cash Equivalents at Period End      |         301.4 |         344.7 |
--------------------------------------------------------------------------------
| Bank Overdraft at Period End                 |        -144.9 |        -110.5 |
--------------------------------------------------------------------------------
| Net Cash and Cash Equivalents at Period End  |         156.5 |         234.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisitions of Subsidiary Companies         |               |               |
--------------------------------------------------------------------------------
|   Cash and cash equivalents                  |           1.6 |             - |
--------------------------------------------------------------------------------
|   Working capital                            |          92.9 |             - |
--------------------------------------------------------------------------------
|   Operating fixed assets                     |         241.9 |             - |
--------------------------------------------------------------------------------
|   Interest-bearing assets                    |          -3.1 |             - |
--------------------------------------------------------------------------------
|   Tax liabilities                            |           2.5 |             - |
--------------------------------------------------------------------------------
|   Interest-bearing liabilities               |          -1.2 |             - |
--------------------------------------------------------------------------------
|   Non-cash share exchange                    |           0.0 |             - |
--------------------------------------------------------------------------------
|   Minority interests                         |           0.8 |          71.2 |
--------------------------------------------------------------------------------
| Fair Value of Net Assets                     |         335.4 |          71.2 |
--------------------------------------------------------------------------------
|   Goodwill                                   |             - |             - |
--------------------------------------------------------------------------------
| Total Purchase Consideration                 |         335.4 |          71.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Disposal of Subsidiary Companies             |               |               |
--------------------------------------------------------------------------------
|   Cash and cash equivalents                  |          19.4 |             - |
--------------------------------------------------------------------------------
|   Working capital                            |          59.9 |           1.0 |
--------------------------------------------------------------------------------
|   Operating fixed assets                     |         256.4 |           1.1 |
--------------------------------------------------------------------------------
|   Interest-bearing assets                    |           1.0 |             - |
--------------------------------------------------------------------------------
|   Tax liabilities                            |         -25.7 |             - |
--------------------------------------------------------------------------------
|   Interest-bearing liabilities               |         -11.8 |          -0.1 |
--------------------------------------------------------------------------------
|   Minority interests                         |             - |          -0.5 |
--------------------------------------------------------------------------------
| Net Assets in Divested Companies             |         299.2 |           1.5 |
--------------------------------------------------------------------------------
| Income Statement capital gain (goodwill      |         166.1 |           0.5 |
| realised)                                    |               |               |
--------------------------------------------------------------------------------
| Total Disposal Consideration                 |         465.3 |           2.0 |
--------------------------------------------------------------------------------


Property, Plant and Equipment, Intangible Assets and Goodwill                   
--------------------------------------------------------------------------------
| EUR million                         |       2006 |    Q1-Q3/06 |    Q1-Q3/07 |
--------------------------------------------------------------------------------
|   Carrying value at 1 January       |   11 213.2 |    11 213.2 |    10 440.4 |
--------------------------------------------------------------------------------
| Acquisition of subsidiary companies |      283.1 |       241.9 |           - |
--------------------------------------------------------------------------------
|   Additions                         |      559.1 |       381.5 |       475.2 |
--------------------------------------------------------------------------------
|   Additions in biological assets    |       24.3 |        22.2 |        32.1 |
--------------------------------------------------------------------------------
|   Change in emission rights         |       54.4 |        61.7 |       -90.6 |
--------------------------------------------------------------------------------
|   Disposals                         |     -237.3 |      -256.5 |       -46.5 |
--------------------------------------------------------------------------------
|   Discontinued operation            |            |             |    -1 722.2 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and impa |   -1 068.0 |      -801.6 |    -1 185.1 |
| irment Cont. Oper.                  |            |             |             |
--------------------------------------------------------------------------------
| Depreciation, amortisation and impa |     -189.7 |      -142.6 |      -295.6 |
| irment Disc. Oper.                  |            |             |             |
--------------------------------------------------------------------------------
|   Translation difference and other  |     -198.7 |      -166.9 |      -129.3 |
--------------------------------------------------------------------------------
| Balance Sheet Total                 |   10 440.4 |    10 552.9 |     7 478.4 |
--------------------------------------------------------------------------------

Borrowings                                                                      
--------------------------------------------------------------------------------
| EUR million                         |     31 Dec | 30 Sep 2006 | 30 Sep 2007 |
|                                     |       2006 |             |             |
--------------------------------------------------------------------------------
| Non-current borrowings              |    4 081.0 |     4 200.8 |     2 646.7 |
--------------------------------------------------------------------------------
| Current borrowings                  |    1 146.9 |     1 085.0 |     1 246.3 |
--------------------------------------------------------------------------------
|                                     |    5 227.9 |     5 285.8 |     3 893.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     |       2006 |    Q1-Q3/06 |    Q1-Q3/07 |
--------------------------------------------------------------------------------
| Carrying value at 1 January         |    6 055.6 |     6 055.6 |     5 227.9 |
--------------------------------------------------------------------------------
| Debt acquired with new subsidiaries |        4.4 |         1.2 |           - |
--------------------------------------------------------------------------------
| Debt disposed with sold             |      -12.0 |       -11.8 |           - |
| subsidiaries                        |            |             |             |
--------------------------------------------------------------------------------
| Proceeds from / payments of         |     -683.7 |      -460.8 |      -101.0 |
| borrowings (net)                    |            |             |             |
--------------------------------------------------------------------------------
| Discontinued operation              |            |             |    -1 149.0 |
--------------------------------------------------------------------------------
| Translation difference and other    |     -136.4 |      -298.4 |       -84.9 |
--------------------------------------------------------------------------------
| Total Borrowings                    |    5 227.9 |     5 285.8 |     3 893.0 |
--------------------------------------------------------------------------------

Discontinued Operations                                                         
--------------------------------------------------------------------------------
| EUR million                                                  |      Q1-Q3/07 |
--------------------------------------------------------------------------------
| Sales                                                        |        1457.5 |
--------------------------------------------------------------------------------
| Operating costs                                              |      -1 440.9 |
--------------------------------------------------------------------------------
| Operating profit before remeasurement to fair value          |          16.6 |
--------------------------------------------------------------------------------
| (Loss) recognized on the remeasurement to fair value*        |        -162.1 |
--------------------------------------------------------------------------------
| Operating (loss)                                             |        -145.5 |
--------------------------------------------------------------------------------
| Net financial items                                          |         -47.6 |
--------------------------------------------------------------------------------
| (Loss) before tax                                            |        -193.1 |
--------------------------------------------------------------------------------
| Tax related to operations**                                  |          -3.9 |
--------------------------------------------------------------------------------
| (Loss) after tax from a discontinued operation               |        -197.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash provided by operating activities                    |          22.1 |
--------------------------------------------------------------------------------
| Net cash used in investing activities                        |         -28.6 |
--------------------------------------------------------------------------------
| Net cash provided by financing activities                    |          33.3 |
--------------------------------------------------------------------------------
| Net increase (decrease) in cash and cash equivalents         |          26.8 |
--------------------------------------------------------------------------------

*   Excludes CTA & Equity Hedge gain of EUR 141.8 million                       
** Excludes non-cash tax on CTA & Equity Hedge of (EUR 185.9) million           
Condensed Consolidated Balance Sheet                                            
--------------------------------------------------------------------------------
| EUR million                      |     | 31 Dec 06 |  30 Sep 06 |  30 Sep 07 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets                           |     |           |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fixed Assets and Other           |     |           |            |            |
| Non-current Investments          |     |           |            |            |
--------------------------------------------------------------------------------
|   Fixed assets                   |  O  |  10 230.8 |   10 299.4 |    7 332.8 |
--------------------------------------------------------------------------------
|   Biological assets              |  O  |     111.5 |      148.1 |      138.1 |
--------------------------------------------------------------------------------
|   Emission rights                |  O  |      98.1 |      105.4 |        7.5 |
--------------------------------------------------------------------------------
| Investment in associated         |  O  |     805.2 |      782.1 |      963.6 |
| companies                        |     |           |            |            |
--------------------------------------------------------------------------------
| Available-for-sale: Listed       |  I  |      41.2 |       81.4 |       48.0 |
| securities                       |     |           |            |            |
--------------------------------------------------------------------------------
| Available-for-sale: Unlisted     |  O  |     794.3 |      403.3 |    1 000.2 |
| shares                           |     |           |            |            |
--------------------------------------------------------------------------------
|   Non-current loan receivables   |  I  |     149.2 |      143.0 |      129.2 |
--------------------------------------------------------------------------------
|   Deferred tax assets            |  T  |      53.5 |       60.7 |       82.7 |
--------------------------------------------------------------------------------
|   Other non-current assets       |  O  |      61.1 |       28.0 |       19.6 |
--------------------------------------------------------------------------------
|                                  |     |  12 344.9 |   12 051.4 |    9 721.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current Assets                   |     |           |            |            |
--------------------------------------------------------------------------------
|   Inventories                    |  O  |   2 019.5 |    2 053.7 |    2 073.0 |
--------------------------------------------------------------------------------
|   Tax receivables                |  T  |     124.8 |      156.5 |      175.6 |
--------------------------------------------------------------------------------
|   Operative receivables          |  O  |   2 156.6 |    2 289.7 |    2 138.7 |
--------------------------------------------------------------------------------
|   Interest-bearing receivables   |  I  |     185.5 |      280.8 |      171.8 |
--------------------------------------------------------------------------------
|   Cash and cash equivalents      |  I  |     609.0 |      301.4 |      180.1 |
--------------------------------------------------------------------------------
|                                  |     |   5 095.4 |    5 082.1 |    4 739.2 |
--------------------------------------------------------------------------------
| Assets of disposal group         |     |         - |          - |    2 332.9 |
| classified as held for sale      |     |           |            |            |
--------------------------------------------------------------------------------
|                                  |     |   5 095.4 |    5 082.1 |    7 072.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Assets                     |     |  17 440.3 |   17 133.5 |   16 793.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and Liabilities           |     |           |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to Company   |     |   7 799.6 |    7 162.3 |    7 592.6 |
| shareholders                     |     |           |            |            |
--------------------------------------------------------------------------------
| Minority interests               |     |     103.5 |       91.8 |       43.6 |
--------------------------------------------------------------------------------
| Total Equity                     |     |   7 903.1 |    7 254.1 |    7 636.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current Liabilities          |     |           |            |            |
--------------------------------------------------------------------------------
| Post-employment benefit          |  O  |     763.1 |      898.8 |      347.8 |
| provisions                       |     |           |            |            |
--------------------------------------------------------------------------------
| Other provisions                 |  O  |     308.3 |      246.7 |       96.3 |
--------------------------------------------------------------------------------
| Deferred tax liabilities         |  T  |     793.0 |      848.3 |      735.7 |
--------------------------------------------------------------------------------
| Non-current debt                 |  I  |   4 081.0 |    4 200.8 |    2 646.7 |
--------------------------------------------------------------------------------
| Other non-current operative      |  O  |     193.7 |      234.8 |      191.2 |
| liabilities                      |     |           |            |            |
--------------------------------------------------------------------------------
|                                  |     |   6 139.1 |    6 429.4 |    4 017.7 |
--------------------------------------------------------------------------------
| Current Liabilities              |     |           |            |            |
--------------------------------------------------------------------------------
| Current portion of long-term     |  I  |     630.2 |      625.7 |      408.3 |
| debt                             |     |           |            |            |
--------------------------------------------------------------------------------
| Interest-bearing liabilities     |  I  |     516.7 |      459.3 |      838.0 |
--------------------------------------------------------------------------------
| Operative liabilities            |  O  |   1 992.5 |    2 029.0 |    1 873.4 |
--------------------------------------------------------------------------------
| Tax liabilities                  |  T  |     258.7 |      336.0 |      256.6 |
--------------------------------------------------------------------------------
|                                  |     |   3 398.1 |    3 450.0 |    3 376.3 |
--------------------------------------------------------------------------------
| Liabilities directly associated with t |         - |          - |    1 763.6 |
| he assets classified as held for sale  |           |            |            |
--------------------------------------------------------------------------------
|                                  |     |   3 398.1 |    3 450.0 |    5 139.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Liabilities                |     |   9 537.2 |    9 879.4 |    9 157.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Equity and Liabilities     |     |  17 440.3 |   17 133.5 |   16 793.8 |
--------------------------------------------------------------------------------

Items designated with “O” comprise Operating Capital                            
Items designated with “I” comprise Interest-bearing Net Liabilities             
Items designated with “T” comprise Net Tax Liabilities                          
Items designated with “A” comprise Associate Companies                          

Changes in Group Shareholders' Equity                                           
--------------------------------------------------------------------------------
| EUR million         | Share | Capit | Treas |  OCI  |   CTA | Retai |  Total |
|                     |  Capi | al Re | ury S |       |       | ned E |        |
|                     |   tal | serve | hares |       |       | arnin |        |
|                     |       |     s |       |       |       |    gs |        |
--------------------------------------------------------------------------------
| Balance at 31 Decem | 1 423 | 1 009 | -180. |  67.6 | -218. | 5 525 | 7 625. |
| ber 2004            |    .3 |    .2 |     8 |       |     9 |    .0 |      4 |
--------------------------------------------------------------------------------
| Repurchase of Stora |     - |     - | -344. |     - |     - |     - | -344.7 |
| Enso Oyj shares     |       |       |     7 |       |       |       |        |
--------------------------------------------------------------------------------
| Cancellation of Sto | -41.2 | -224. | 265.6 |     - |     - |     - |    0.0 |
| ra Enso Oyj shares  |       |     4 |       |       |       |       |        |
--------------------------------------------------------------------------------
| Dividend (EUR 0.45  |     - |     - |     - |     - |     - | -365. | -365.3 |
| per share)          |       |       |       |       |       |     3 |        |
--------------------------------------------------------------------------------
| Buy-out of minority |     - |     - |     - |     - |     - | -43.2 |  -43.2 |
|  interests          |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Net loss for the pe |     - |     - |     - |     - |   0.2 | -111. | -110.9 |
| riod                |       |       |       |       |       |     1 |        |
--------------------------------------------------------------------------------
| Net income recogniz |     - |     - |     - | 400.4 |  91.6 | -33.2 |  458.8 |
| ed                  |       |       |       |       |       |       |        |
| directly to equity  |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Balance at 31 Decem | 1 382 | 784.8 | -259. | 468.0 | -127. |     4 |      7 |
| ber 2005            |    .1 |       |     9 |       |     1 | 972.2 |  220.1 |
--------------------------------------------------------------------------------
| Cancellation of Sto | -39.9 | -15.9 | 249.1 |     - |     - | -193. |    0.0 |
| ra Enso Oyj shares  |       |       |       |       |       |     3 |        |
--------------------------------------------------------------------------------
| Dividend (EUR 0.45  |     - |     - |     - |     - |     - | -354. | -354.9 |
| per share)          |       |       |       |       |       |     9 |        |
--------------------------------------------------------------------------------
| Options exercised   |     - |  -1.7 |   0.2 |     - |     - |     - |   -1.5 |
--------------------------------------------------------------------------------
| Net profit for the  |     - |     - |     - |     - |   3.4 | 322.0 |  325.4 |
| period              |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Net expense recogni |     - |     - |     - |  -5.8 | -21.0 |     - |  -26.8 |
| zed directly to equ |       |       |       |       |       |       |        |
| ity                 |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Balance at 30 Septe | 1 342 | 767.2 | -10.6 | 462.2 | -144. | 4 746 | 7 162. |
| mber 2006           |    .2 |       |       |       |     7 |    .0 |      3 |
--------------------------------------------------------------------------------
| Options exercised   |     - |  -0.3 |   0.1 |     - |     - |     - |   -0.2 |
--------------------------------------------------------------------------------
| Buy-out of minority |     - |     - |     - |     - |     - |  -0.1 |   -0.1 |
|  interests          |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Net profit for the  |     - |     - |     - |     - |  -9.2 | 263.0 |  253.8 |
| period              |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Net income recogniz |     - |     - |     - | 273.4 |  21.9 |  88.5 |  383.8 |
| ed directly to      |       |       |       |       |       |       |        |
| equity              |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Balance at 31 Decem | 1 342 | 766.9 | -10.5 | 735.6 | -132. | 5 097 | 7 799. |
| ber 2006            |    .2 |       |       |       |     0 |    .4 |      6 |
--------------------------------------------------------------------------------
| Dividend (EUR 0.45  |       |       |       |       |       | -354. | -354.9 |
| per share)          |       |       |       |       |       |     9 |        |
--------------------------------------------------------------------------------
| Options exercised   |       |  -1.2 |   0.2 |       |   8.5 |  -8.5 |   -1.0 |
--------------------------------------------------------------------------------
| Buy-out of minority |       |       |       |       |       |   0.9 |    0.9 |
|  interests          |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Net loss for the pe |       |       |       |       | -16.6 | -79.4 |  -96.0 |
| riod                |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Net income recogniz |       |       |       | 241.4 |   2.2 |   0.4 |  244.0 |
| ed directly to equi |       |       |       |       |       |       |        |
| ty                  |       |       |       |       |       |       |        |
--------------------------------------------------------------------------------
| Balance at 30 Septe | 1 342 | 765.7 | -10.3 | 977.0 | -137. | 4 655 | 7 592. |
| mber 2007           |    .2 |       |       |       |     9 |    .9 |      6 |
--------------------------------------------------------------------------------



CTA = Cumulative Translation Adjustment                                         
OCI = Other Comprehensive Income                                                

Commitments and Contingencies                                                   
--------------------------------------------------------------------------------
| EUR million                     |    31 Dec 06 |    30 Sep 06 |    30 Sep 07 |
--------------------------------------------------------------------------------
| On Own Behalf                   |              |              |              |
--------------------------------------------------------------------------------
|   Pledges given                 |          1.0 |          1.1 |          0.8 |
--------------------------------------------------------------------------------
|   Mortgages                     |        146.8 |        186.9 |        129.6 |
--------------------------------------------------------------------------------
| On Behalf of Associated         |              |              |              |
| Companies                       |              |              |              |
--------------------------------------------------------------------------------
|   Mortgages                     |          0.8 |          0.9 |          0.0 |
--------------------------------------------------------------------------------
|   Guarantees                    |        343.0 |        348.7 |        261.5 |
--------------------------------------------------------------------------------
| On Behalf of Others             |              |              |              |
--------------------------------------------------------------------------------
|   Guarantees                    |          9.5 |         11.4 |          9.9 |
--------------------------------------------------------------------------------
| Other Commitments, Own          |              |              |              |
--------------------------------------------------------------------------------
| Leasing commitments, in next 12 |         38.4 |         34.1 |         31.1 |
|  months                         |              |              |              |
--------------------------------------------------------------------------------
| Leasing commitments, after next |        130.3 |        131.8 |        117.7 |
|  12 months                      |              |              |              |
--------------------------------------------------------------------------------
|   Pension liabilities           |          0.2 |          0.4 |          0.2 |
--------------------------------------------------------------------------------
|   Other commitments             |         17.1 |         87.2 |         17.0 |
--------------------------------------------------------------------------------
| Total                           |        687.1 |        802.5 |        567.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|   Pledges given                 |          1.0 |          1.1 |          0.8 |
--------------------------------------------------------------------------------
|   Mortgages                     |        147.6 |        187.8 |        129.6 |
--------------------------------------------------------------------------------
|   Guarantees                    |        352.5 |        360.1 |        271.4 |
--------------------------------------------------------------------------------
|   Leasing commitments           |        168.7 |        165.9 |        148.8 |
--------------------------------------------------------------------------------
|   Pension liabilities           |          0.2 |          0.4 |          0.2 |
--------------------------------------------------------------------------------
|   Other commitments             |         17.1 |         87.2 |         17.0 |
--------------------------------------------------------------------------------
| Total                           |        687.1 |        802.5 |        567.8 |
--------------------------------------------------------------------------------

Purchase Agreement Commitments                                                  
--------------------------------------------------------------------------------
| EUR million             | Scheduled Contract  |         |         |          |
|                         |      Payments       |         |         |          |
--------------------------------------------------------------------------------
| Type of Supply          |  Contract |    2007 | 2008-9  | 2010-11 |   2012+  |
|                         |    Total  |         |         |         |          |
--------------------------------------------------------------------------------
|   | Fibre               |      2322 |     132 |     458 |     413 |     1319 |
--------------------------------------------------------------------------------
|   | Energy              |       843 |      94 |     492 |     241 |       16 |
--------------------------------------------------------------------------------
|   | Logistics           |       628 |      56 |     173 |     105 |      294 |
--------------------------------------------------------------------------------
|   | Other Production    |       175 |     43  |     16  |      7  |     109  |
|   | costs               |           |         |         |         |          |
--------------------------------------------------------------------------------
|   |                     |    3 968  |    325  |  1 139  |    766  |   1 738  |
--------------------------------------------------------------------------------
| Capital Expenditure     |       265 |     177 |      88 |       0 |        0 |
--------------------------------------------------------------------------------
| Total Contractual       |    4 233  |    502  |  1 227  |    766  |   1 738  |
| Commitments             |           |         |         |         |          |
--------------------------------------------------------------------------------


Net Fair Values of Derivative Financial Instruments                             
--------------------------------------------------------------------------------
| EUR million |   31 Dec 06 |    30 Sep 06 |  30 Sep 07  |          |          |
--------------------------------------------------------------------------------
|             |         Net |          Net |    Positive | Negative |      Net |
|             |        Fair |         Fair |        Fair |     Fair |     Fair |
|             |      Values |       Values |      Values |   Values |   Values |
--------------------------------------------------------------------------------
| Interest    |        48.1 |         69.7 |        75.8 |    -46.5 |     29.3 |
| rate swaps  |             |              |             |          |          |
--------------------------------------------------------------------------------
| Interest    |        -1.8 |         -2.1 |         0.1 |     -1.9 |     -1.8 |
| rate        |             |              |             |          |          |
| options     |             |              |             |          |          |
--------------------------------------------------------------------------------
| Cross-curre |        -1.2 |         -3.0 |         0.0 |      0.0 |      0.0 |
| ncy swaps   |             |              |             |          |          |
--------------------------------------------------------------------------------
| Forward     |        28.2 |         -4.9 |        10.2 |    -25.4 |    -15.2 |
| contracts   |             |              |             |          |          |
--------------------------------------------------------------------------------
| FX options  |         5.9 |          1.8 |        16.9 |     -1.1 |     15.8 |
--------------------------------------------------------------------------------
| Commodity   |        63.2 |        208.6 |        95.1 |     -1.9 |     93.2 |
| contracts   |             |              |             |          |          |
--------------------------------------------------------------------------------
| Equity      |         7.0 |         14.1 |        34.4 |     -9.3 |     25.1 |
| swaps       |             |              |             |          |          |
--------------------------------------------------------------------------------
| Equity      |             |              |         0.2 |      0.0 |      0.2 |
| options     |             |              |             |          |          |
--------------------------------------------------------------------------------
| Total       |       149.4 |        284.2 |       232.7 |    -86.1 |    146.6 |
--------------------------------------------------------------------------------

Nominal Values of Derivative Financial Instruments                              
--------------------------------------------------------------------------------
| EUR million       |        31 Dec 06 |         30 Sep 06 |         30 Sep 07 |
--------------------------------------------------------------------------------
| Interest Rate     |                  |                   |                   |
| Derivatives       |                  |                   |                   |
--------------------------------------------------------------------------------
| Interest rate     |                  |                   |                   |
| swaps             |                  |                   |                   |
--------------------------------------------------------------------------------
| Maturity under 1  |            177.4 |             100.0 |               0.0 |
| year              |                  |                   |                   |
--------------------------------------------------------------------------------
| Maturity 2-5      |          2 152.1 |           2 260.4 |           2 285.2 |
| years             |                  |                   |                   |
--------------------------------------------------------------------------------
| Maturity 6-10     |          2 490.5 |           2 291.8 |           2 612.6 |
| years             |                  |                   |                   |
--------------------------------------------------------------------------------
|                   |          4 820.0 |           4 652.2 |           4 897.8 |
--------------------------------------------------------------------------------
| Interest rate     |            318.0 |             308.9 |             595.2 |
| options           |                  |                   |                   |
--------------------------------------------------------------------------------
| Total             |          5 138.0 |           4 961.1 |           5 493.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign Exchange  |                  |                   |                   |
| Derivatives       |                  |                   |                   |
--------------------------------------------------------------------------------
| Cross-currency    |              6.9 |              43.6 |               0.0 |
| swap agreements   |                  |                   |                   |
--------------------------------------------------------------------------------
| Forward contracts |          1 778.4 |           1 706.5 |           1 903.1 |
--------------------------------------------------------------------------------
|   FX Options      |            662.8 |             985.3 |           2 082.6 |
--------------------------------------------------------------------------------
| Total             |          2 448.1 |           2 735.4 |           3 985.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity         |                  |                   |                   |
| Derivatives       |                  |                   |                   |
--------------------------------------------------------------------------------
| Commodity         |            635.8 |             592.3 |             502.5 |
| contracts         |                  |                   |                   |
--------------------------------------------------------------------------------
| Total             |            635.8 |             592.3 |             502.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity swaps      |                  |                   |                   |
--------------------------------------------------------------------------------
|   Equity swaps    |            328.6 |             370.8 |             220.4 |
--------------------------------------------------------------------------------
|   Equity options  |                  |                   |               4.3 |
--------------------------------------------------------------------------------
| Total             |            328.6 |             370.8 |             224.7 |
--------------------------------------------------------------------------------


Sales by Segment                                                                
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/0 |  2006 | Q1/07 |  Q2/07 |  Q3/07 |
|                |    6 |    6 |    6 |    6 |       |       |        |        |
--------------------------------------------------------------------------------
| Newsprint      | 406. | 421. | 427. | 448. | 1 704 | 438.7 |  429.9 |  430.0 |
|                |    6 |    5 |    2 |    7 |    .0 |       |        |        |
--------------------------------------------------------------------------------
| Magazine Paper | 533. | 526. | 570. | 589. | 2 220 | 566.6 |  552.9 |  587.3 |
|                |    6 |    7 |    7 |    3 |    .3 |       |        |        |
--------------------------------------------------------------------------------
| Fine Paper     | 609. | 572. | 538. | 542. | 2 261 | 577.0 |  522.8 |  529.7 |
|                |    3 |    3 |    1 |    1 |    .8 |       |        |        |
--------------------------------------------------------------------------------
| Merchants      | 496. | 452. | 450. | 508. | 1 907 | 532.9 |  479.4 |  474.4 |
|                |    3 |    6 |    1 |    2 |    .2 |       |        |        |
--------------------------------------------------------------------------------
| Consumer Board | 584. | 583. | 603. | 560. | 2 331 | 589.6 |  570.1 |  562.1 |
|                |    5 |    8 |    4 |    2 |    .9 |       |        |        |
--------------------------------------------------------------------------------
| Industrial Pac | 225. | 241. | 245. | 258. | 970.7 | 266.1 |  274.2 |  267.8 |
| kaging         |    8 |    1 |    3 |    5 |       |       |        |        |
--------------------------------------------------------------------------------
| Wood Products  | 389. | 425. | 417. | 440. | 1 673 | 472.3 |  525.7 |  461.4 |
|                |    1 |    8 |    8 |    3 |    .0 |       |        |        |
--------------------------------------------------------------------------------
| Other and elim | -53. |  9.4 | -40. | -27. | -111. | -32.7 |    0.9 |  -78.2 |
| ination        |    3 |      |    4 |    4 |     7 |       |        |        |
--------------------------------------------------------------------------------
| Continuing Ope | 3 19 | 3 23 | 3 21 | 3 31 | 12 95 | 3 410 | 3 355. | 3 234. |
| rations        |  1.9 |  3.2 |  2.2 |  9.9 |   7.2 |    .5 |      9 |      5 |
--------------------------------------------------------------------------------
| Discontinued O | 475. | 442. | 486. | 462. | 1 866 | 487.9 |  484.3 |  485.3 |
| peration       |    4 |    8 |    2 |    4 |    .8 |       |        |        |
--------------------------------------------------------------------------------
| Elimination    | -59. | -59. | -60. | -50. | -230. | -43.0 |  -35.0 |  -34.9 |
|                |    6 |    7 |    3 |    5 |     1 |       |        |        |
--------------------------------------------------------------------------------
| Total          | 3 60 | 3 61 | 3 63 | 3 73 | 14 59 | 3 855 | 3 805. | 3 684. |
|                |  7.7 |  6.3 |  8.1 |  1.8 |   3.9 |    .4 |      2 |      9 |
--------------------------------------------------------------------------------

Operating Profit by Segment excluding NRI                                       
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/0 |  2006 | Q1/07 |  Q2/07 |  Q3/07 |
|                |    6 |    6 |    6 |    6 |       |       |        |        |
--------------------------------------------------------------------------------
| Continuing Ope |      |      |      |      |       |       |        |        |
| rations        |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Newsprint      | 55.9 | 57.6 | 61.0 | 57.6 | 232.1 |  61.1 |   50.2 |   52.2 |
--------------------------------------------------------------------------------
| Magazine Paper | 24.0 | 12.3 | 12.0 | 22.4 |  70.7 |  13.0 |    9.6 |   17.0 |
--------------------------------------------------------------------------------
| Fine Paper     | 44.4 | 50.3 | 29.8 | 28.2 | 152.7 |  60.2 |   34.6 |   38.6 |
--------------------------------------------------------------------------------
| Merchants      |  9.6 |  2.9 |  7.7 | 12.5 |  32.7 |  16.6 |    8.2 |    7.9 |
--------------------------------------------------------------------------------
| Consumer Board | 81.3 | 55.9 | 64.3 | 39.4 | 240.9 |  72.4 |   29.0 |   27.0 |
--------------------------------------------------------------------------------
| Industrial Pac | 18.5 | 18.1 | 26.1 | 22.3 |  85.0 |  29.3 |   29.7 |   24.9 |
| kaging         |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Wood Products  |  4.1 | 15.0 | 22.0 | 22.3 |  63.4 |  54.8 |   59.3 |   37.1 |
--------------------------------------------------------------------------------
| Other          | 37.5 | -67. | 23.3 | 13.1 |   6.9 |  19.8 |   31.8 |   47.3 |
|                |      |    0 |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Operating Prof | 275. | 145. | 246. | 217. | 884.4 | 327.2 |  252.4 |  252.0 |
| it excl. NRI   |    3 |    1 |    2 |    8 |       |       |        |        |
--------------------------------------------------------------------------------
| NRI            | -23. |  6.7 | -163 | 36.6 | -142. | -12.0 |   24.4 | -549.4 |
|                |    2 |      |   .0 |      |     9 |       |        |        |
--------------------------------------------------------------------------------
| Operating Prof | 252. | 151. | 83.2 | 254. | 741.5 | 315.2 |  276.8 | -297.4 |
| it (IFRS)      |    1 |    8 |      |    4 |       |       |        |        |
--------------------------------------------------------------------------------
| Net financial  | 81.3 | -67. | -24. | -19. | -30.3 | -38.7 |  -56.1 |  -26.9 |
| items          |      |    3 |    7 |    6 |       |       |        |        |
--------------------------------------------------------------------------------
| Profit before  | 333. | 84.5 | 58.5 | 234. | 711.2 | 276.5 |  220.7 | -324.3 |
| Tax and Minori |    4 |      |      |    8 |       |       |        |        |
| ty Interests   |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Income tax exp | -91. | -21. | 34.6 | 67.5 | -10.8 | -69.3 |  -41.5 |   60.2 |
| ense           |    3 |    6 |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Net Profit fro | 242. | 62.9 | 93.1 | 302. | 700.4 | 207.2 |  179.2 | -264.1 |
| m Continuing O |    1 |      |      |    3 |       |       |        |        |
| perations      |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Discontinued O |      |      |      |      |       |       |        |        |
| peration       |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Loss after tax | -15. | -22. | -36. | -37. | -111. |  15.3 |  -35.3 | -177.0 |
|  for the perio |    7 |    0 |    0 |    5 |     2 |       |        |        |
| d from a disco |      |      |      |      |       |       |        |        |
| ntinued operat |      |      |      |      |       |       |        |        |
| ion            |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Net Profit     | 226. | 40.9 | 57.1 | 264. | 589.2 | 222.5 |  143.9 | -441.1 |
|                |    4 |      |      |    8 |       |       |        |        |
--------------------------------------------------------------------------------


NRI by Segment                                                                  
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/0 |  2006 | Q1/07 |  Q2/07 |  Q3/07 |
|                |    6 |    6 |    6 |    6 |       |       |        |        |
--------------------------------------------------------------------------------
| Newsprint      |    - |  1.3 |    - |    - |   1.3 |     - |      - |      - |
--------------------------------------------------------------------------------
| Magazine Paper | -2.9 |  1.2 | -164 |  2.1 | -163. |     - |      - | -218.0 |
|                |      |      |   .0 |      |     6 |       |        |        |
--------------------------------------------------------------------------------
| Fine Paper     | -16. |  2.4 | 72.0 |  1.0 |  58.5 |     - |      - |  -32.6 |
|                |    9 |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Merchants      |    - |    - |    - |  0.4 |   0.4 |     - |   24.4 |      - |
--------------------------------------------------------------------------------
| Consumer Board |    - | -7.2 |    - |  2.3 |  -4.9 |     - |      - | -186.8 |
--------------------------------------------------------------------------------
| Industrial     |    - |  1.7 |    - |    - |   1.7 |     - |      - |   -5.9 |
| Packaging      |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Wood Products  |  1.7 |  1.2 | -24. |  0.4 | -20.7 | -12.0 |      - | -106.1 |
|                |      |      |    0 |      |       |       |        |        |
--------------------------------------------------------------------------------
| Other          | -5.1 |  6.1 | -47. | 30.4 | -15.6 |     - |      - |      - |
|                |      |      |    0 |      |       |       |        |        |
--------------------------------------------------------------------------------
| Continuing     | -23. |  6.7 | -163 | 36.6 | -142. | -12.0 |   24.4 | -549.4 |
| Operations     |    2 |      |   .0 |      |     9 |       |        |        |
--------------------------------------------------------------------------------
| Discontinued   |    - |    - | -14. | 23.4 |   9.2 |  44.0 |  -11.6 |      - |
| Operation      |      |      |    2 |      |       |       |        |        |
--------------------------------------------------------------------------------
| Total          | -23. |  6.7 | -177 | 60.0 | -133. |  32.0 |   12.8 | -549.4 |
|                |    2 |      |   .2 |      |     7 |       |        |        |
--------------------------------------------------------------------------------

Operating Profit by Segment                                                     
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/0 |  2006 | Q1/07 |  Q2/07 |  Q3/07 |
|                |    6 |    6 |    6 |    6 |       |       |        |        |
--------------------------------------------------------------------------------
| Continuing Ope |      |      |      |      |       |       |        |        |
| rations        |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Newsprint      | 55.9 | 58.9 | 61.0 | 57.6 | 233.4 |  61.1 |   50.2 |   52.2 |
--------------------------------------------------------------------------------
| Magazine Paper | 21.1 | 13.5 | -152 | 24.5 | -92.9 |  13.0 |    9.6 | -201.0 |
|                |      |      |   .0 |      |       |       |        |        |
--------------------------------------------------------------------------------
| Fine Paper     | 27.5 | 52.7 | 101. | 29.2 | 211.2 |  60.2 |   34.6 |    6.0 |
|                |      |      |    8 |      |       |       |        |        |
--------------------------------------------------------------------------------
| Merchants      |  9.6 |  2.9 |  7.7 | 12.9 |  33.1 |  16.6 |   32.6 |    7.9 |
--------------------------------------------------------------------------------
| Consumer Board | 81.3 | 48.7 | 64.3 | 41.7 | 236.0 |  72.4 |   29.0 | -159.8 |
--------------------------------------------------------------------------------
| Industrial Pac | 18.5 | 19.8 | 26.1 | 22.3 |  86.7 |  29.3 |   29.7 |   19.0 |
| kaging         |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Wood Products  |  5.8 | 16.2 | -2.0 | 22.7 |  42.7 |  42.8 |   59.3 |  -69.0 |
--------------------------------------------------------------------------------
| Other          | 32.4 | -60. | -23. | 43.5 |  -8.7 |  19.8 |   31.8 |   47.3 |
|                |      |    9 |    7 |      |       |       |        |        |
--------------------------------------------------------------------------------
| Operating Prof | 252. | 151. | 83.2 | 254. | 741.5 | 315.2 |  276.8 | -297.4 |
| it             |    1 |    8 |      |    4 |       |       |        |        |
--------------------------------------------------------------------------------
| Net financial  | 81.3 | -67. | -24. | -19. | -30.3 | -38.7 |  -56.1 |  -26.9 |
| items          |      |    3 |    7 |    6 |       |       |        |        |
--------------------------------------------------------------------------------
| Profit before  | 333. | 84.5 | 58.5 | 234. | 711.2 | 276.5 |  220.7 | -324.3 |
| Tax and Minori |    4 |      |      |    8 |       |       |        |        |
| ty Interests   |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Income tax exp | -91. | -21. | 34.6 | 67.5 | -10.8 | -69.3 |  -41.5 |   60.2 |
| ense           |    3 |    6 |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Net Profit fro | 242. | 62.9 | 93.1 | 302. | 700.4 | 207.2 |  179.2 | -264.1 |
| m Continuing O |    1 |      |      |    3 |       |       |        |        |
| perations      |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Discontinued O |      |      |      |      |       |       |        |        |
| peration       |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Loss after tax | -15. | -22. | -36. | -37. | -111. |  15.3 |  -35.3 | -177.0 |
|  for the perio |    7 |    0 |    0 |    5 |     2 |       |        |        |
| d from a disco |      |      |      |      |       |       |        |        |
| ntinued operat |      |      |      |      |       |       |        |        |
| ion            |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Net Profit     | 226. | 40.9 | 57.1 | 264. | 589.2 | 222.5 |  143.9 | -441.1 |
|                |    4 |      |      |    8 |       |       |        |        |
--------------------------------------------------------------------------------


Associated Companies by Segment                                                 
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/0 |  2006 | Q1/07 |  Q2/07 |  Q3/07 |
|                |    6 |    6 |    6 |    6 |       |       |        |        |
--------------------------------------------------------------------------------
| Newsprint      |    - |    - |    - |    - |     - |     - |      - |      - |
--------------------------------------------------------------------------------
| Magazine Paper |  2.3 |  0.8 |  3.2 |  3.8 |  10.1 |   3.6 |    1.2 |   -0.5 |
--------------------------------------------------------------------------------
| Fine Paper     |  7.6 | -1.6 |  5.0 |  1.5 |  12.5 |   5.1 |   -3.9 |    4.2 |
--------------------------------------------------------------------------------
| Merchants      |    - |    - |    - |    - |     - |     - |      - |    0.1 |
--------------------------------------------------------------------------------
| Consumer Board |    - |    - |    - |    - |     - |     - |      - |      - |
--------------------------------------------------------------------------------
| Industrial     |  0.1 |  0.4 | -0.2 |  0.1 |   0.4 |   0.1 |    0.1 |    0.2 |
| Packaging      |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Wood Products  |  0.4 |  0.0 |  0.0 |  0.2 |   0.6 |     - |      - |      - |
--------------------------------------------------------------------------------
| Other          | 20.3 | 18.6 |  5.1 | 20.4 |  64.4 |  15.3 |   22.6 |   61.5 |
--------------------------------------------------------------------------------
| Continuing     | 30.7 | 18.2 | 13.1 | 26.0 |  88.0 |  24.1 |   20.0 |   65.5 |
| Operations     |      |      |      |      |       |       |        |        |
| Total          |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Discontinued   |  0.9 |  2.0 | -2.9 | -0.6 |  -0.6 |   0.1 |   -0.2 |   -0.7 |
| Operation      |      |      |      |      |       |       |        |        |
--------------------------------------------------------------------------------
| Total          | 31.6 | 20.2 | 10.2 | 25.4 |  87.4 |  24.2 |   19.8 |   64.8 |
--------------------------------------------------------------------------------


Stora Enso Shares                                                               

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| Closing Price    |   Helsinki, EUR    |   Stockholm, SEK    | New York, USD  |
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|                  | A share | R share  | A share  | R share  |      ADRs      |
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| July             |  12.64  |  12.65   |  116.75  |  116.50  |     17.13      |
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| August           |  12.98  |  13.08   |  121.50  |  122.25  |     17.94      |
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| September        |  13.58  |  13.66   |  124.50  |  125.00  |     19.34      |
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| Trading Volume   |      Helsinki      |      Stockholm      |    New York    |
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|                  | A share | R share  | A share  | R share  |      ADRs      |
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| July             | 114 287 | 92 755 2 | 680 622  | 12 308 4 |   2 696 300    |
|                  |         |    90    |          |    47    |                |
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| August           | 201 412 | 118 849  | 212 652  | 10 717 5 |   3 749 300    |
|                  |         |   563    |          |    28    |                |
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| September        | 156 283 | 118 522  | 142 724  | 8 357 75 |   4 487 400    |
|                  |         |   739    |          |    2     |                |
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| Total            | 471 982 | 330 127  | 1 035 99 | 31 383 7 |   10 933 000   |
|                  |         |   592    |    8     |    27    |                |
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Basis of Preparation                                                            
This unaudited interim financial report has been prepared in accordance with the
accounting policies set out in International Accounting Standard 34 on Interim  
Financial Reporting and in the Group's Annual Report for 2006.                  

The Group has adopted IFRS 7, Financial Instruments: Disclosures, and the       
complementary Amendment to IAS 1, Presentation of Financial Statements - Capital
Disclosures which is mandatory for the Group's accounting periods beginning on  
or after 1 January 2007. The adoption of this standard and amendment will result
in additional disclosures relating to financial instruments and how an entity   
manages its capital in the Group's Annual Report.                               

The planned sale of Stora Enso North America, Inc has been accounted for as a   
discontinued operation and classified as ‘Held for Sale'. A discontinued        
operation represents a separate major line of business or geographical area for 
which the assets less liabilities and net financial results may be distinguished
physically, operationally and for financial reporting purposes. Assets are      
classified as ‘Held for Sale' when it is highly probable that the carrying      
amount of the assets will be recovered through a sale transaction rather than   
continuing use. These assets have been measured at fair value less costs to     
sell. The closing sales consideration is subject to fair value changes and      
therefore the final outcome of the transaction is subject to change.            

Change in Accounting Policy and Reclassification in 2006                        
Operating profit for 2006 has been reclassified. Total Return Swaps (TRS) which 
are partially hedging cash settled synthetic option programmes for Management,  
previously reported in other financial items, are now reported in operating     
profit under personnel expenses, with an effect on operating profit of EUR 34.1 
million, EUR 23.0 million and EUR 24.6 million in Q3/2006, Q1-Q3/2006 and       
Q1-Q4/2006, respectively. TRS instruments do not qualify for hedge accounting   
and therefore all periodic changes to their fair value are recorded in the      
Income Statement.                                                               

The share of associated company results previously reported with financial items
is now reported in operating profit. The associated companies supply Stora Enso 
with wood, pulp and logistic services, so this change in accounting policy has  
been implemented to reflect the operational nature of these investments. The    
change has increased operating profit by EUR 13.1 million, EUR 62.0 million and 
EUR 88.0 million in Q3/2006, Q1-Q3/2006 and Q1-Q4/2006, respectively.           

The changes in accounting policy have no effect on profit before tax.           
Comparative amounts disclosed for each prior period presented have been         
restated.                                                                       

Calculation of Key Figures                                                      
Return on capital employed, 		                                                  
ROCE (%) 	100  x 	Operating profit____                                          
		Capital employed 1) 2)                                                        

Return on operating capital,	100  x	Operating profit____                        
ROOC (%)		Operating capital 1) 2)                                               

	                                                                               
Return on equity,	100  x	Profit before tax and minority items - taxes           
ROE (%) 		Total Equity 2)                                                       
 		                                                                             

Equity ratio (%) 	100  x	Total Equity                                           
		Total assets                                                                  
		                                                                              

		                                                                              
Interest-bearing net liabilities 		Interest-bearing liabilities -               
interest-bearing assets                                                         

Debt/Equity ratio		Interest-bearing net liabilities                             
		Equity                                                                        

	                                                                               

1) Capital employed = Operating capital - Net tax liabilities                   
2) Average for the financial period                                             


For further information, please contact:                                        
Jouko Karvinen, CEO, tel. +358 2046 21410                                       
Hannu Ryöppönen, Deputy CEO & CFO, tel. +358 2046 21450                         
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197               
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659                 
Ulla Paajanen-Sainio, VP, Investor Relations and Financial Communications,      
tel.                                                                            
+358 40 763 8767                                                                


Stora Enso's full year 2007 results will be published on 13 February 2008.      

PRESS CONFERENCE IN HELSINKI                                                    
Time: 	11.30 local time                                                         
Location: 	Wanha Satama, conference room H+                                     
Address: 	Pikku Satamakatu 3-5                                                  
Hosts: 	Jouko Karvinen, CEO                                                     
Hannu Ryöppönen, Deputy CEO & CFO                                               
Kari Vainio, Executive Vice President, Corporate Communications                 

The conference will be held in English. Questions can be asked from Jouko       
Karvinen and Hannu Ryöppönen after the presentation.                            

Webcast of press conference                                                     
A live webcast (audio with synchronised slide presentation) of the press        
conference may be accessed on www.storaenso.com. The presentation material will 
be available on www.storaenso.com/investors at 11.30 Finnish time (10.30 CET).  

In case you are participating remotely in press conference and you would like to
pose a question, please dial:                                                   
+44 (0)20 7162 0125  	Continental Europe and the UK                             
+46 (0)8 5052 0114  	Sweden                                                     
358 (0)9 2313 9202   	Finland                                                   
+1 334 323 6203  	USA                                                           

ANALYST CONFERENCE CALL                                                         
CEO Jouko Karvinen and Deputy CEO & CFO Hannu Ryöppönen will be hosting a       
combined conference call and webcast today at 16.00 Finnish time (15.00 CET,    
14.00 UK time, 9.00 US Eastern time).                                           

If you wish to participate, please dial (quoting ‘Stora Enso'):                 
+44 (0)20 7806 1950  	Continental Europe and the UK                             
+46 (0)8                                                                        
5352 6408  	Sweden                                                              
+358 (0)9 7251 9035  	Finland                                                   
+1 718 354 1387 	USA                                                            

The live webcast may be accessed at www.storaenso.com/investors                 

Further details of replay numbers can be found at www.storaenso.com/investors   


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.                                                                          


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

STORA ENSO OYJ                                                                  


Jyrki Kurkinen		Ulla Paajanen-Sainio

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