Stora Enso Interim Review January-September 2008

Favourable exchange rates, reduced overhead costs and pricing improvements      
compensated for deteriorating market conditions since the second quarter 2008   

STORA ENSO OYJ INTERIM REVIEW 23 October 2008 at 06.00 GMT                      

Summary of Third Quarter Results                                                

--------------------------------------------------------------------------------
| Continuing Operations:         |           |    Q3/07 |    Q2/08 |     Q3/08 |
--------------------------------------------------------------------------------
| Sales                          | EUR       |  2 876.7 |  2 871.8 |   2 722.7 |
|                                | million   |          |          |           |
--------------------------------------------------------------------------------
| Operating Profit excl. NRI and | EUR       |    199.2 |     94.4 |     125.5 |
| Fair Valuations                | million   |          |          |           |
--------------------------------------------------------------------------------
| Operating profit (IFRS)        | EUR       |   -305.3 |     71.3 |    -138.7 |
|                                | million   |          |          |           |
--------------------------------------------------------------------------------
| Profit before tax excl. NRI    | EUR       |    220.2 |     31.7 |     117.8 |
|                                | million   |          |          |           |
--------------------------------------------------------------------------------
| Profit before tax              | EUR       |   -329.2 |     30.4 |    -161.7 |
|                                | million   |          |          |           |
--------------------------------------------------------------------------------
| Net profit excl. NRI           | EUR       |    168.2 |     29.9 |     116.5 |
|                                | million   |          |          |           |
--------------------------------------------------------------------------------
| Net profit                     | EUR       |   -274.5 |     28.6 |    -119.1 |
|                                | million   |          |          |           |
--------------------------------------------------------------------------------
| EPS excl. NRI                  | EUR       |     0.21 |     0.04 |      0.14 |
--------------------------------------------------------------------------------
| EPS                            | EUR       |    -0.36 |     0.04 |     -0.16 |
--------------------------------------------------------------------------------
| CEPS excl. NRI                 | EUR       |     0.46 |     0.26 |      0.37 |
--------------------------------------------------------------------------------
| ROCE excl. NRI                 | %         |      9.6 |      2.8 |       5.4 |
--------------------------------------------------------------------------------
| ROCE excl. NRI and fair        | %         |      7.8 |      3.6 |       4.9 |
| valuations                     |           |          |          |           |
--------------------------------------------------------------------------------


Message from CEO Jouko Karvinen:                                                
“The storm we have faced for the past 18 months has changed. Strengthening of   
the US dollar and, even more important for us, weakening of the Swedish krona   
have already clearly helped. We can also see a downward trend in fuel-based     
energy costs, which will start supporting us in early 2009 following the        
tremendous increases of recent quarters. However, we now also face accelerating 
softening in market demand in most grades. This reality makes the actions we    
have taken in the past year and a half, from cost and capacity cuts, focus on   
pricing quality, increasing Finnish wood sourcing and strengthening our balance 
sheet through divestments, critically important. Our third quarter results,     
although still poor, were somewhat better than expected owing in part to our own
early actions. The fact that we have since mid 2007 successfully improved our   
liquidity and reduced our reliance on short-term borrowings with a significantly
extended debt maturity profile also supports us now when we enter the next phase
of the storm.                                                                   

“Our focus on pricing quality has worked well in all magazine paper grades,     
coated fine paper, consumer board and some of the industrial packaging grades.  
We have achieved meaningful  - and necessary - price increases in local         
currencies compared to the prior year period. We will continue to defend our    
margins by adjusting volumes across our product mix towards more profitable     
grades and safeguard our earnings capability even if that means production      
curtailments. In some segments, such as newsprint and magazine paper, we have   
informed our customers that we intend to increase prices in early 2009, despite 
the softening macroeconomic outlook.                                            

“Another key priority is to improve our weak operating cash flow. We reduced our
capital investments in the third quarter by some more than 20% compared to a    
year earlier. We are now reviewing our entire capital investment programme for  
the next one to two years, with the aim of  reducing the overall level while    
ensuring that we progress in strategically critical projects. For these         
projects, we will focus on safeguarding the quality and progress of the         
investments, but we will consider rescheduling them if needed. We also have the 
aim of reducing working capital and will curtail production to realistic        
delivery volumes already in the fourth quarter to ensure that we start 2009 with
inventory levels appropriate for the challenging year to come. These production 
curtailments will have a clearly unfavourable impact on our fourth quarter      
earnings. We are convinced this is the right preparation for the reality we face
in 2009. As before, we believe it is right to plan for the worst, and then      
adjust our plans upwards if and when the opportunity comes.”                    

Near-term Outlook                                                               
In Europe market demand is forecast to be weaker in the fourth quarter than a   
year earlier for newsprint, magazine paper and fine paper. Despite weakening    
demand, markets for most paper products, especially newsprint, are expected to  
remain balanced due to substantial reductions in production capacity.           

Consumer board and industrial packaging markets are forecast to be weaker than a
year earlier. Demand for consumer board is currently negatively impacted by food
safety problems in China, and industrial packaging will be affected by weaker   
demand in consumer goods markets and construction industries. The outlook for   
wood products remains poor, further undermined by low consumer confidence, and  
demand is likely to be weaker in the fourth quarter than a year earlier.        

Prices in Europe are expected to remain stable during the fourth quarter for    
newsprint, magazine paper and uncoated fine paper. Some improvement in coated   
fine paper and consumer board prices is anticipated as already announced price  
increases are gradually implemented. Prices for industrial packaging products   
are forecast to decrease slightly. Persistent oversupply of wood products is    
likely to keep prices under pressure in many markets. Stora Enso intends to     
increase prices for newsprint, magazine paper and coated fine paper in Europe in
early 2009.                                                                     

In China demand and prices are vulnerable to weakness in coated magazine paper  
market, which is also having an affect on the uncoated magazine paper market.   
The outlook for fine paper demand in China remains stable, but prices are       
exposed to some pressure due to elevated mill inventories.                      

In Latin America demand for magazine paper is forecast to stabilise, but prices 
for non-contractual business are predicted to improve further. In other overseas
markets some improvement during the quarter is anticipated in magazine paper    
prices, whereas newsprint prices are expected to remain unchanged after         
significant increases in the third quarter.                                     

Markets                                                                         
Compared with Q3/2007                                                           
In Europe market demand was stronger for uncoated magazine paper and coated fine
paper, similar to a year ago for newsprint, weaker for coated magazine paper,   
uncoated fine paper, consumer board and industrial packaging, and significantly 
weaker for wood products.                                                       

Market prices in local currencies were higher for all magazine paper grades,    
consumer board and some industrial packaging grades, virtually unchanged for    
uncoated fine paper and lower for newsprint in Europe, coated fine paper and    
recycled containerboard. Prices were considerably lower for wood products.      

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

In Latin America market demand for coated magazine paper was somewhat weaker,   
but prices increased considerably.                                              

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

Compared with Q2/2008                                                           
In Europe market demand was stronger for uncoated magazine paper and coated fine
paper. Demand was slightly weaker for newsprint, coated magazine paper, consumer
board and most industrial packaging grades, and considerably weaker for uncoated
fine paper and wood products.                                                   

Market prices in local currencies were higher for magazine paper and slightly   
higher for consumer board and some industrial packaging grades. Prices were     
unchanged for coated fine paper and newsprint in Europe, and lower for uncoated 
fine paper, recycled containerboard and wood products.                          

Producer inventories were lower in newsprint, uncoated magazine paper and coated
fine paper, but higher in coated magazine paper and uncoated fine paper.        

In Latin America market demand for coated magazine paper strengthened and prices
improved.                                                                       

In China demand was stable for uncoated magazine paper and coated fine paper.   
Uncoated magazine paper prices were higher, but coated fine paper prices        
remained under pressure.                                                        

Stora Enso Deliveries and Production from Continuing Operations                 
--------------------------------------------------------------------------------
|            | Q1-Q3 | Q1-Q3 | Q3/07 | Q2/08 | Q3/08 | Chang | Change | Change |
|            |   /07 |   /08 |       |       |       |   e % |      % |      % |
|            |       |       |       |       |       | Q3/08 | Q3/08- | Q1-Q3/ |
|            |       |       |       |       |       | -Q3/0 |  Q2/08 |   08 - |
|            |       |       |       |       |       |     7 |        | Q1-Q3/ |
|            |       |       |       |       |       |       |        |     07 |
--------------------------------------------------------------------------------
| Paper and  | 9 329 | 8 992 | 3 112 | 2 995 | 2 973 |  -4.5 |   -0.7 |   -3.6 |
| board      |       |       |       |       |       |       |        |        |
| deliveries |       |       |       |       |       |       |        |        |
| (1 000     |       |       |       |       |       |       |        |        |
| tonnes)    |       |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Paper and  | 9 403 | 9 054 | 3 119 | 2 969 | 3 016 |  -3.3 |    1.6 |   -3.7 |
| board      |       |       |       |       |       |       |        |        |
| production |       |       |       |       |       |       |        |        |
| (1 000     |       |       |       |       |       |       |        |        |
| tonnes)    |       |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Wood       | 4 927 | 4 471 | 1 545 | 1 563 | 1 441 |  -6.7 |   -7.8 |   -9.3 |
| products   |       |       |       |       |       |       |        |        |
| deliveries |       |       |       |       |       |       |        |        |
| (1 000 m3) |       |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------
| Corrugated |   798 |   808 |   275 |   276 |   269 |  -2.2 |   -2.5 |    1.3 |
| packaging  |       |       |       |       |       |       |        |        |
| deliveries |       |       |       |       |       |       |        |        |
| (1 000 000 |       |       |       |       |       |       |        |        |
| m2)        |       |       |       |       |       |       |        |        |
--------------------------------------------------------------------------------

Mill closures and restructurings reduced comparative deliveries as follows for  
the period Q3/08 compared with Q3/07: Summa Mill closure in January 2008 by some
72 000 tonnes of newsprint and 12 000 tonnes of magazine paper; Reisholz Mill   
closure in the fourth quarter of 2007 by some 49 000 tonnes of magazine paper;  
Anjala Mill restructuring in the first quarter of 2008 by some 30 000 tonnes of 
magazine paper; Berghuizer Mill's two paper machines shut down in April and     
October 2007 by some 27 000 tonnes of fine paper; and Kemijärvi Pulp Mill       
closure at the end of April 2008 by some 42 000 tonnes.                         

Mill closures and restructurings reduced comparative deliveries as follows for  
the period Q1-Q3/08 compared with Q1-Q3/07: Summa Mill closure in January 2008  
by some 205 000 tonnes of newsprint and 33 000 tonnes of magazine paper;        
Reisholz Mill closure in the fourth quarter of 2007 by some 133 000 tonnes of   
magazine paper; Anjala Mill restructuring in the first quarter of 2008 by some  
74 000 tonnes of magazine paper; Berghuizer Mill's two paper machines shut down 
in April and October 2007 by some 122 000 tonnes of fine paper; and Kemijärvi   
Pulp Mill closure at the end of April 2008 by some 48 000 tonnes.               

Q3/2008 Results from Continuing Operations (compared with Q3/2007)              
Sales at EUR 2 722.7 million were EUR 154.0 million less than in the third      
quarter of 2007. Mill closures reduced sales by EUR 119 million. Unfavourable   
exchange rate trends for Newsprint, Magazine Paper, Fine Paper and Consumer     
Board, and significantly lower prices and deliveries in Wood Products were only 
partly compensated by higher deliveries in Newsprint and Fine Paper, and higher 
sales prices for many paper and board products. Industrial Packaging sales      
increased slightly, mainly due to higher sales prices.                          

Key Figures                                                                     
--------------------------------------------------------------------------------
| EUR        | 2007 | Q1-Q | Q1-Q | Q3/07 | Q2/08 | Q3/08 | Chan | Chan | Chan |
| million    |      | 3/07 | 3/08 |       |       |       | ge % | ge % | ge % |
|            |      |      |      |       |       |       | Q3/0 | Q3/0 | Q1-Q |
|            |      |      |      |       |       |       | 8-Q3 | 8-Q2 | 3/08 |
|            |      |      |      |       |       |       |  /07 |  /08 | -Q1- |
|            |      |      |      |       |       |       |      |      | Q3/0 |
|            |      |      |      |       |       |       |      |      |    7 |
--------------------------------------------------------------------------------
| Continuing |      |      |      |       |       |       |      |      |      |
| Operations |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Sales      |   11 |    8 |    8 |     2 |     2 |     2 | -5.4 | -5.2 | -5.0 |
|            | 848. | 867. | 426. | 876.7 | 871.8 | 722.7 |      |      |      |
|            |    5 |    8 |    3 |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| EBITDA     |    1 |    1 | 824. | 369.6 | 236.7 | 311.8 | -15. | 31.7 | -36. |
| excluding  | 568. | 297. |    2 |       |       |       |    6 |      |    5 |
| NRI        |    6 |    0 |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Operating  |    1 | 798. | 338. | 244.1 |  72.6 | 140.7 | -42. | 93.8 | -57. |
| profit     | 126. |    9 |    3 |       |       |       |    4 |      |    7 |
| excluding  |    8 |      |      |       |       |       |      |      |      |
| NRI        |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Operating  | 861. | 717. | 360. | 199.2 |  94.4 | 125.5 | -37. | 32.9 | -49. |
| profit     |    1 |    0 |    0 |       |       |       |    0 |      |    8 |
| excl. NRI  |      |      |      |       |       |       |      |      |      |
| and fair   |      |      |      |       |       |       |      |      |      |
| valuations |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| NRI        | -949 | -561 | -280 | -549. |  -1.3 | -279. | 49.1 |  n/m | 50.0 |
| (operation |   .9 |   .4 |   .7 |     4 |       |     4 |      |      |      |
| al)        |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Operating  |  9.5 |  9.0 |  4.0 |   8.5 |   2.5 |   5.2 | -38. | 108. | -55. |
| margin     |      |      |      |       |       |       |    8 |    0 |    6 |
| excluding  |      |      |      |       |       |       |      |      |      |
| NRI, %     |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Operating  | 176. | 237. | 57.6 | -305. |  71.3 | -138. | 54.6 | -294 | -75. |
| profit     |    9 |    5 |      |     3 |       |     7 |      |   .5 |    7 |
| (IFRS)     |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Net        | -156 | -113 | -105 | -23.9 | -40.9 | -23.0 |  3.8 | 43.8 |  6.4 |
| financial  |   .7 |   .0 |   .8 |       |       |       |      |      |      |
| items      |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Profit     | 970. | 685. | 232. | 220.2 |  31.7 | 117.8 | -46. | 271. | -66. |
| before tax |    1 |    9 |    5 |       |       |       |    5 |    6 |    1 |
| and        |      |      |      |       |       |       |      |      |      |
| minority   |      |      |      |       |       |       |      |      |      |
| interests  |      |      |      |       |       |       |      |      |      |
| excluding  |      |      |      |       |       |       |      |      |      |
| NRI        |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Profit     | 20.2 | 124. | -48. | -329. |  30.4 | -161. | 50.9 |  n/m | -138 |
| before tax |      |    5 |    2 |     2 |       |     7 |      |      |   .7 |
| and        |      |      |      |       |       |       |      |      |      |
| minority   |      |      |      |       |       |       |      |      |      |
| interests  |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Net profit | 745. | 526. | 212. | 168.2 |  29.9 | 116.5 | -30. | 289. | -59. |
| for the    |    9 |    3 |    9 |       |       |       |    7 |    6 |    5 |
| period     |      |      |      |       |       |       |      |      |      |
| excluding  |      |      |      |       |       |       |      |      |      |
| NRI        |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| Net profit | 11.4 | 71.6 | -24. | -274. |  28.6 | -119. | 56.6 |  n/m | -133 |
| for the    |      |      |    0 |     5 |       |     1 |      |      |   .5 |
| period     |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS from   | 0.94 | 0.66 | 0.26 |  0.21 |  0.04 |  0.14 | -33. | 250. | -60. |
| continuing |      |      |      |       |       |       |    3 |    0 |    6 |
| operations |      |      |      |       |       |       |      |      |      |
| excluding  |      |      |      |       |       |       |      |      |      |
| NRI,       |      |      |      |       |       |       |      |      |      |
| Basic, EUR |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| EPS from   | 0.01 | 0.08 | -0.0 | -0.36 |  0.04 | -0.16 | 55.6 |  n/m | -150 |
| continuing |      |      |    4 |       |       |       |      |      |   .0 |
| operations |      |      |      |       |       |       |      |      |      |
| , Basic,   |      |      |      |       |       |       |      |      |      |
| EUR        |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| CEPS from  | 1.94 | 1.44 | 0.93 |  0.46 |  0.26 |  0.37 | -19. | 42.3 | -35. |
| continuing |      |      |      |       |       |       |    6 |      |    4 |
| operations |      |      |      |       |       |       |      |      |      |
| excluding  |      |      |      |       |       |       |      |      |      |
| NRI, EUR   |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| ROCE from  | 11.4 | 16.0 |  6.7 |   9.6 |   2.8 |   5.4 | -43. | 92.9 | -58. |
| continuing |      |      |      |       |       |       |    8 |      |    1 |
| operations |      |      |      |       |       |       |      |      |      |
| excluding  |      |      |      |       |       |       |      |      |      |
| NRI, %     |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| ROCE from  |  8.7 | 14.4 |  7.2 |   7.8 |   3.6 |   4.9 | -37. | 36.1 | -50. |
| continuing |      |      |      |       |       |       |    2 |      |    0 |
| excl. NRI  |      |      |      |       |       |       |      |      |      |
| and fair   |      |      |      |       |       |       |      |      |      |
| valuations |      |      |      |       |       |       |      |      |      |
| , %        |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| ROCE, %    |  1.8 |  4.8 |  1.1 | -12.0 |   2.7 |  -5.4 | 55.0 | -300 | -77. |
|            |      |      |      |       |       |       |      |   .0 |    1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total      |      |      |      |       |       |       |      |      |      |
| Operations |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| EPS from   | -0.2 | -0.1 | -0.0 | -0.56 |  0.03 | -0.15 | 73.2 |  n/m | 70.0 |
| total      |    7 |    0 |    3 |       |       |       |      |      |      |
| operations |      |      |      |       |       |       |      |      |      |
| , Basic,   |      |      |      |       |       |       |      |      |      |
| EUR        |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------
| EPS from   | 0.88 | 0.62 | 0.27 |  0.23 |  0.03 |  0.15 | -34. |  n/m | -56. |
| total      |      |      |      |       |       |       |    8 |      |    5 |
| operations |      |      |      |       |       |       |      |      |      |
| excluding  |      |      |      |       |       |       |      |      |      |
| NRI,       |      |      |      |       |       |       |      |      |      |
| Basic, EUR |      |      |      |       |       |       |      |      |      |
--------------------------------------------------------------------------------

NRI = Non-recurring items. These are exceptional transactions that are not      
related to normal business operations. The most common non-recurring items are  
capital gains, additional write-downs, provisions for planned restructuring and 
penalties. Non-recurring items are normally specified individually if they      
exceed one cent per share.                                                      
Cash Earnings per Share (CEPS) = (Net profit for the period + depreciation and  
amortisation)/average number of shares                                          
Fair valuations and related items include Total Return Swaps (TRS), synthetic   
options and CO2 emission rights, and valuations of biological assets mainly     
related to associated companies' forest assets                                  

Reconciliation of Operating Profit, Continuing Operations                       
--------------------------------------------------------------------------------
| EUR million      | Q1-Q | Q1-Q | Q3/0 | Q2/0 | Q3/08 | Chang | Chang | Chang |
|                  | 3/07 | 3/08 |    7 |    8 |       |   e % |   e % |   e % |
|                  |      |      |      |      |       | Q3/08 | Q3/08 | Q1-Q3 |
|                  |      |      |      |      |       | -Q3/0 | -Q2/0 | /08-Q |
|                  |      |      |      |      |       |     7 |     8 | 1-Q3/ |
|                  |      |      |      |      |       |       |       |    07 |
--------------------------------------------------------------------------------
| Profit from      | 655. | 339. | 181. | 86.1 | 129.4 | -28.8 |  50.3 | -48.1 |
| operations,      |    5 |    9 |    8 |      |       |       |       |       |
| excl. NRI        |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Associated       | 61.5 | 20.1 | 17.4 |  8.3 |  -3.9 | -122. | -147. | -67.3 |
| companies,       |      |      |      |      |       |     4 |     0 |       |
| operational,     |      |      |      |      |       |       |       |       |
| excl. fair       |      |      |      |      |       |       |       |       |
| valuations*      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Operating Profit | 717. | 360. | 199. | 94.4 | 125.5 | -37.0 |  32.9 | -49.8 |
| excl. NRI and    |    0 |    0 |    2 |      |       |       |       |       |
| Fair Valuations* |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Fair valuations* | 81.9 | -21. | 44.9 | -21. |  15.2 | -66.1 | 169.7 | -126. |
|                  |      |    7 |      |    8 |       |       |       |     5 |
--------------------------------------------------------------------------------
| Operating        | 798. | 338. | 244. | 72.6 | 140.7 | -42.4 |  93.8 | -57.7 |
| Profit, excl.    |    9 |    3 |    1 |      |       |       |       |       |
| NRI              |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| NRI              | -561 | -280 | -549 | -1.3 | -279. | -49.1 |   n/m | -50.0 |
|                  |   .4 |   .7 |   .4 |      |     4 |       |       |       |
--------------------------------------------------------------------------------
| Operating Profit | 237. | 57.6 | -305 | 71.3 | -138. | -54.6 | -294. | -75.7 |
| (IFRS)           |    5 |      |   .3 |      |     7 |       |     5 |       |
--------------------------------------------------------------------------------

* Fair valuations and related items include Total Return Swaps (TRS), synthetic 
options and CO2 emission rights, and valuations of biological assets mainly     
related to associated companies' forest assets                                  

Q3/2008 Results from Continuing Operations (compared with Q3/2007)	(continued)  
Operating profit excluding non-recurring items and fair valuations decreased by 
EUR 73.7 million to EUR 125.5 million, which is 4.6% of sales. Wood Products    
accounted for EUR 51.4 million and Newsprint for EUR 18.7 million of the        
decrease, and operating profit also decreased slightly in Industrial Packaging  
and Fine Paper. Operating profit increased in Magazine Paper, Consumer Board and
Other operations. Wood Products made an operating loss of EUR 14.3 million      
(operating profit EUR 37.1 million).                                            

In paper and board mills, excluding closed mills, higher sales prices in local  
currencies improved operating profit by EUR 89 million and higher deliveries by 
EUR 12 million. Unfavourable exchange rate trends decreased operating profit net
of currency hedges by approximately EUR 48 million. Lower deliveries and sales  
prices had a negative impact of EUR 64 million on the Wood Products operating   
profit figure, resulting in an operating loss.                                  

Energy costs increased by EUR 35 million, one third of which was due to         
electricity cost increases and two thirds due to fuel cost increases. Higher    
wood costs reduced the Group's overall operating profit by approximately EUR 9  
million as the decrease in sawlog costs (EUR 15 million) was more than offset by
the increase in pulpwood costs (EUR 24 million). The impairments in the second  
half of 2007 reduced depreciation by EUR 22 million.                            

Fixed costs decreased by EUR 36 million, mainly due to cost improvement actions 
including restructuring.                                                        

Deliveries of wood to the Group's mills totalled 9.0 million cubic metres, down 
14% on the third quarter of 2007 due to mill closures and production            
curtailments at pulp and paper mills and sawmills.                              

The share of associated company operational results, excluding IAS 41 forest    
valuations, amounted to EUR                                                     
-3.9 (EUR 17.4) million, including EUR -11.1 (EUR 4.2) million from Veracel,    
which accounted for most of the change. Two thirds of the deterioration arose   
from fair valuation of the US dollar denominated loan portfolio, which had no   
effect on cash flow, and one third from operating profit. Since the beginning of
2008, associated companies have been reported separately in operating profit; in
the previous year they were included in the respective business area's operating
profit. The comparative operating profits of business areas for 2007 have been  
reclassified accordingly. Operating profit includes a net effect of EUR 15.2    
million (EUR 44.9 million) from the accounting of share-based compensation,     
Total Return Swaps (TRS), CO2 emission rights and IAS 41 forest valuations      
mainly related to associated companies.                                         
                                                                                
On 10 September 2008 the Group announced approximately EUR 280 million of       
provisions and fixed asset write-downs as non-recurring items relating to       
planned closures and personnel reductions, about EUR 160 million are cash costs 
impacting over the restructuring period.                                        

Net financial items were EUR -23.0 (EUR -23.9) million. Net interest expenses   
decreased slightly from EUR -36.4 million to EUR -35.4 million and net foreign  
exchange gains on borrowings, currency derivatives and bank accounts increased  
from EUR 4.2 million to EUR 5.6 million. The net gain from other financial items
amounted to EUR 6.8 million, mainly due to fair valuation gains on interest rate
swaps, compared with a loss of EUR -8.7 million.                                
                                                                                
Group capital employed was EUR 10 058.5 million on 30 September 2008, a net     
decrease of EUR 637.7 million due to the divestment of North American and       
Merchant operations, restructuring of the Group, and fixed asset and goodwill   
impairments recorded in September 2007.                                         

January-September 2008 Results (compared with the same period in 2007)          
Sales at EUR 8 426.3 million were EUR 441.5 million less than during the same   
period of 2007. Mill closures reduced sales by EUR 341 million. Sales were also 
reduced by unfavourable exchange rate trends, and in Wood Products by           
significantly lower prices and deliveries.                                      

Operating profit excluding non-recurring items and fair valuations decreased by 
EUR 357.0 million to EUR 360.0 million, which is 4.3% of sales. Wood Products   
accounted for EUR 199.8 million of the decrease, and operating profit was also  
lower in all other segments except Magazine Paper and Other Operations. Wood    
Products made an operating loss of EUR 48.6 million (operating profit EUR 151.2 
million).                                                                       

Changes in deliveries had no material effect on Group operating profit, as a    
large decrease in Wood Products deliveries and slight decreases in Consumer     
Board and Industrial Packaging deliveries were offset by other business areas.  
Sales prices in local currencies increased Group operating profit by EUR 78     
million as increases in Magazine Paper, Fine Paper, Consumer Board and          
Industrial Packaging more than offset slightly lower Newsprint prices and much  
lower Wood Products prices. Unfavourable exchange rate trends decreased         
operating profit net of currency hedges by approximately EUR 161 million.       

Higher wood costs reduced the Group's overall operating profit by approximately 
EUR 78 million as the slight decrease in sawlog costs (EUR 23 million) was more 
than offset by the increase in pulpwood costs (EUR 101 million). Other fibre    
costs increased by some EUR 44 million, three quarters of the increase being due
to higher recovered paper costs.                                                

Energy costs increased by approximately EUR 85 million.                         

Deliveries of wood to the Group's mills totalled 28.8 million cubic metres, down
10% due to mill closures and production curtailments at pulp and paper mills and
sawmills.                                                                       

Net financial items were EUR -105.8 (EUR -113.0) million. Net interest decreased
by EUR 1.8 million to EUR 109.0 million and net foreign exchange gains decreased
from EUR 2.1 million to EUR 1.1 million. The net gain from other financial items
amounted to EUR 2.1 million, mainly due to fair value gains on interest rate    
swaps, compared with a net loss of EUR -4.3 million in the previous year.       

Discontinued Operations                                                         
On 30 April 2008 Stora Enso finalised the divestment of its merchant business   
Papyrus to Altor Fund II as announced on 6 March 2008. The merchants business is
classified as a discontinued operation according to IFRS, so its net profit for 
the four months ended 30 April is reported in a single line after net profit    
from continuing operations. The profit on discontinued operations includes a    
loss on disposal including cumulative exchange rate differences.                

The operating profit from discontinued operations, excluding the loss on        
disposal, was EUR 15.5 million. The loss on disposal before tax was EUR 3.7     
million, net of cumulative exchange rate differences.                           

Q3/2008 Results (compared with Q2/2008)                                         
Sales at EUR 2 722.7 million were EUR 149.1 million less than the previous      
quarter's EUR 2 871.8 million. Mill closures decreased sales by EUR 15 million. 
Deliveries decreased but prices in local currencies increased, and exchange rate
changes also increased sales.                                                   

Operating profit excluding non-recurring items and fair valuations increased by 
EUR 31.1 million to EUR 125.5 million due to cost reductions related to         
restructuring and higher sales prices, especially for newsprint and magazine    
paper.                                                                          

Group capital employed was EUR 10 058.5 million on 30 September 2008, a net     
decrease of EUR 580.1 million.                                                  

Capital Structure                                                               
--------------------------------------------------------------------------------
| EUR million                  | 31 Dec 07 | 30 Sep 07 | 30 Jun 08 | 30 Sep 08 |
--------------------------------------------------------------------------------
| Fixed assets                 |   8 493.2 |   8 478.6 |   8 572.8 |   8 044.8 |
--------------------------------------------------------------------------------
| Discontinued operations      |           |     265.4 |           |           |
--------------------------------------------------------------------------------
| Associated companies         |   1 154.5 |     963.6 |   1 213.7 |   1 177.1 |
--------------------------------------------------------------------------------
| Operative working capital    |   2 084.3 |   2 338.3 |   1 921.3 |   1 882.5 |
--------------------------------------------------------------------------------
| Non-current interest-free    |    -610.8 |    -615.7 |    -531.5 |   - 549.8 |
| items, net                   |           |           |           |           |
--------------------------------------------------------------------------------
| Operating Capital Total      |  11 121.2 |  11 430.2 |  11 176.3 |  10 554.6 |
--------------------------------------------------------------------------------
| Net tax liabilities          |    -618.6 |    -734.0 |    -537.7 |    -496.1 |
--------------------------------------------------------------------------------
| Capital Employed             |  10 502.6 |  10 696.2 |  10 638.6 |  10 058.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to       |   7 476.1 |   7 023.3 |   7 665.0 |   6 995.0 |
| Company shareholders         |           |           |           |           |
--------------------------------------------------------------------------------
| Equity in discontinued       |         - |     569.3 |         - |         - |
| operations                   |           |           |           |           |
--------------------------------------------------------------------------------
| Minority interests           |      71.9 |      43.6 |      74.8 |      74.0 |
--------------------------------------------------------------------------------
| Net interest-bearing         |   2 954.6 |   3 363.9 |   2 898.8 |   2 989.5 |
| liabilities                  |           |           |           |           |
--------------------------------------------------------------------------------
| Discontinued operation       |         - |    -303.9 |         - |         - |
--------------------------------------------------------------------------------
| Financing Total              |  10 502.6 |  10 696.2 |  10 638.6 |  10 058.5 |
--------------------------------------------------------------------------------

Financing Q3/2008 (compared with Q2/2008)                                       
Cash flow from continuing operations was EUR 193.2 (EUR 345.9) million and cash 
flow after investing activities EUR 40.4 (EUR 151.6) million.                   

At the end of the period, interest-bearing net liabilities of the Group were EUR
2 989.5 million, an increase of EUR 90.7 million mainly due to strengthened US  
dollar which was partly offset by reduced debt. Total unutilised committed      
credit facilities and cash and cash-equivalent net reserves decreased by EUR 0.1
billion to EUR 1.8 billion. In addition, Stora Enso has access to various       
long-term sources of funding up to EUR 0.8 billion.                             

The debt/equity ratio at 30 September 2008 was 0.43 (0.38). The currency effect 
on equity was positive EUR 81 million net of the hedging of equity translation  
risks. The fair valuation of unlisted securities, mainly related to the unlisted
Finnish power supply company Pohjolan Voima, included within available-for-sale 
assets decreased equity by EUR 352.0 million. The revaluation was due to the    
decrease in electricity prices since the second quarter of 2008.                

Financing Q3/2008 (compared with Q3/2007)                                       
Stora Enso has proactively worked to reduce the liquidity risk and reliance on  
short-term borrowings and has extended the maturity profile since mid 2007, when
the first wave of the financial crisis hit the markets. At the end of the third 
quarter of 2008 Stora Enso had current borrowings of EUR 585 million and cash   
and cash equivalent of EUR 398 million, compared with EUR 1 246 million of      
current borrowings and EUR 180 million of cash and cash equivalents at the end  
of the third quarter of 2007.                                                   
Cash Flow                                                                       
--------------------------------------------------------------------------------
| EUR million  | 200 | Q1- | Q1-Q | Q3/0 | Q2/0 | Q3/0 | Chang | Chang | Chang |
|              |   7 | Q3/ | 3/08 |    7 |    8 |    8 |   e % |   e % |   e % |
|              |     |  07 |      |      |      |      | Q3/08 | Q3/08 | Q1-Q3 |
|              |     |     |      |      |      |      | -Q3/0 | -Q2/0 | /08-Q |
|              |     |     |      |      |      |      |     7 |     8 | 1-Q3/ |
|              |     |     |      |      |      |      |       |       |    07 |
--------------------------------------------------------------------------------
| Continuing   |     |     |      |      |      |      |       |       |       |
| Operations   |     |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Operating    | 176 | 237 | 57.6 | -305 | 71.3 | -138 |  54.6 | -294. | -75.7 |
| profit       |  .9 |  .5 |      |   .3 |      |   .7 |       |     5 |       |
--------------------------------------------------------------------------------
| Depreciation |   1 |   1 | 618. | 667. | 192. | 231. | -65.2 |  20.3 | -42.2 |
| and other    | 219 | 069 |    4 |    0 |    7 |    8 |       |       |       |
| non-cash     |  .8 |  .9 |      |      |      |      |       |       |       |
| items        |     |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Change in    | -22 | -41 | -164 | -36. | 81.9 | 100. |   n/m |  22.2 |  60.8 |
| working      | 8.4 | 9.6 |   .3 |    2 |      |    1 |       |       |       |
| capital      |     |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Cash Flow    |   1 | 887 | 511. | 325. | 345. | 193. | -40.6 | -44.1 | -42.4 |
| from         | 168 |  .8 |    7 |    5 |    9 |    2 |       |       |       |
| Operations   |  .3 |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Capital      | -76 | -46 | -481 | -193 | -194 | -152 |  21.2 |  21.4 |  -3.0 |
| expenditure  | 8.3 | 7.4 |   .2 |   .9 |   .3 |   .8 |       |       |       |
--------------------------------------------------------------------------------
| Cash Flow    | 400 | 420 | 30.5 | 131. | 151. | 40.4 | -69.3 | -73.4 | -92.7 |
| after        |  .0 |  .4 |      |    6 |    6 |      |       |       |       |
| Investing    |     |     |      |      |      |      |       |       |       |
| Activities   |     |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Discontinued |     |     |      |      |      |      |       |       |       |
| Operations   |     |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Cash flow    | 136 | 46. | 51.5 | 13.9 | 34.4 |  0.0 | -100. | -100. |  10.5 |
| from         |  .8 |   6 |      |      |      |      |     0 |     0 |       |
| discontinued |     |     |      |      |      |      |       |       |       |
| operations   |     |     |      |      |      |      |       |       |       |
| after        |     |     |      |      |      |      |       |       |       |
| investing    |     |     |      |      |      |      |       |       |       |
| activities   |     |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Total Cash   | 536 | 467 | 82.0 | 145. | 186. | 40.4 | -72.2 | -78.3 | -82.4 |
| Flow after   |  .8 |  .0 |      |    5 |    0 |      |       |       |       |
| Investing    |     |     |      |      |      |      |       |       |       |
| Activities   |     |     |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------

Capital Expenditure for January-September 2008                                  
Capital expenditure for the first nine months of 2008 totalled EUR 481.2 million
including land acquisitions, which is in line with decreased depreciation. The  
Group's total capital expenditure for 2008 is expected to be about EUR 650-700  
million, including land acquisitions.                                           

The main projects during January­-September 2008 were plantation projects in    
South America (EUR 46.2 million) and at Guangxi in China (EUR 27.1 million), the
energy-related investments at Langerbrugge Mill in Belgium (EUR 21.0 million)   
and Maxau Mill in Germany (EUR 17.3 million), and the offset micro-flute        
packaging plant at Komarom in Hungary (EUR 13.1 million).                       

Goodwill Impairment Testing                                                     
As already announced in the second quarter 2008 interim review, goodwill        
impairment testing, which has been undertaken in the third quarter each year,   
will from now on be undertaken in the fourth quarter in order to align the      
testing procedures with the strategy and planning process. Fixed assets are     
currently being reviewed for potential impairment including the uncertainties   
relating mainly to Russian duties, and the Group expects to complete the fixed  
asset and goodwill impairment testing by the year end.                          

Short-term Risks and Uncertainties                                              
The global economic slowdown may reduce demand for the Group's products. Energy 
prices and their impact on production costs will affect corrugated packaging,   
paper and board demand. Wood raw material markets in general constitute a major 
business risk and uncertainty, especially in the Baltic Sea region and Central  
Europe.                                                                         

Energy sensitivity analysis for 2009: the direct effects on 2009 operating      
profit of a 10% change in electricity market price and a 10% change in oil      
market price would be about EUR 6 million and about EUR 18 million respectively.
Increased oil hedges have reduced sensitivity to energy prices for 2009.        

Near-term Outlook                                                               
In Europe market demand is forecast to be weaker in the fourth quarter than a   
year earlier for newsprint, magazine paper and fine paper. Despite weakening    
demand, markets for most paper products, especially newsprint, are expected to  
remain balanced due to substantial reductions in production capacity.           

Consumer board and industrial packaging markets are forecast to be weaker than a
year earlier. Demand for consumer board is currently negatively impacted by food
safety problems in China, and industrial packaging will be affected by weaker   
demand in consumer goods markets and construction industries. The outlook for   
wood products remains poor, further undermined by low consumer confidence, and  
demand is likely to be weaker in the fourth quarter than a year earlier.        

Prices in Europe are expected to remain stable during the fourth quarter for    
newsprint, magazine paper and uncoated fine paper. Some improvement in coated   
fine paper and consumer board prices is anticipated as already announced price  
increases are gradually implemented. Prices for industrial packaging products   
are forecast to decrease slightly. Persistent oversupply of wood products is    
likely to keep prices under pressure in many markets. Stora Enso intends to     
increase prices for newsprint, magazine paper and coated fine paper in Europe in
early 2009.                                                                     

In China demand and prices are vulnerable to weakness in coated magazine paper  
market, which is also having an affect on the uncoated magazine paper market.   
The outlook for fine paper demand in China remains stable, but prices are       
exposed to some pressure due to elevated mill inventories.                      

In Latin America demand for magazine paper is forecast to stabilise, but prices 
for non-contractual business are predicted to improve further. In other overseas
markets some improvement during the quarter is anticipated in magazine paper    
prices, whereas newsprint prices are expected to remain unchanged after         
significant increases in the third quarter.                                     

Third Quarter Events                                                            
Veracel -Events during the Period                                               
On 11 July 2008 Stora Enso announced that a federal judge in Brazil had claimed 
in a judgement that the permits issued by the State of Bahia to Stora Enso's    
associated company Veracel were not valid and no environmental impact assessment
study had been undertaken for the licensing. The judge decreed that 47 000      
hectares of Veracel's current plantations should be cut down and reforested     
within one year with native trees and fined Veracel a possible BRL 20 million   
(EUR 8 million). Veracel (at that time Veracruz Florestal Ltda.) was accused of 
having deforested a minor area (64 hectares) of native forest in 1993. Veracel  
vigorously disputes the findings of the court and is in the process of appealing
against the judgement. Veracel operates in full compliance with all Brazilian   
laws. An extensive environmental impact assessment study was undertaken in      
1994-1995 as part of the legal permit requirements, and Veracel has obtained all
the necessary environmental and operating licences for its industrial and       
forestry activities from the Brazilian environmental authorities. Veracel has   
not recorded any provision for the reforestation or the possible fine.          
Veracel -Events after the Period                                                
On 17 October, in connection with communications about its own financial and    
liquidity situation, Aracruz, Stora Enso's partner in Veracel, made comments    
about the possible timing of Veracel II. Stora Enso is in discussions with      
Aracruz and has clearly stated that the plan for a second line at Veracel is a  
priority for Stora Enso. Veracel currently continues to operate normally under  
its own dedicated management and board. The Veracel II feasibility study will   
continue and is expected to be completed around mid 2009. Only thereafter a     
decision of Veracel II can be made based on the circumstances then prevailing,  
including the latest market and cost data.                                      

Restructuring                                                                   
On 10 September 2008 Stora Enso announced plans for permanent capacity closures 
totalling 600 000 tonnes of paper and board and 170 000 cubic metres of sawn    
goods annual capacity, as well as plans to invest about EUR 135 million over the
next two years to develop the Group's operations at Imatra, Fors and Ingerois   
mills.                                                                          

Focused Administration                                                          
On 10 September 2008 Stora Enso also announced that it plans to reduce its      
administration to suit its more focussed business needs. The Group is already   
assessing its administrative functions at all levels of the organisation to     
determine which activities are needed to support the business. The project is   
proceeding according to plan and the results of the assessment will be ready by 
the end of 2008.                                                                

Inspections by Competition Authorities                                          
In 2007, following US Federal District Court trial, Stora Enso was found not    
guilty of charges by the US Department of Justice 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 which 
still are pending.                                                              

As a result of an investigation, the Finnish Competition Authority has proposed 
to the Finnish Market Court that a fine of EUR 30 million should 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 Management and Organisational Structure                        
On 25 August Stora Enso announced that it had appointed Hannu Kasurinen as the  
new head of Stora Enso's Wood Products Business Area and a member of the Group  
Executive Team (GET). He reports directly to CEO Jouko Karvinen and is based in 
Helsinki.                                                                       

On 1 September Stora Enso announced the following changes in the Group Executive
Team, which took effect on 1 October 2008.                                      
Hannu Ryöppönen, Deputy CEO and CFO, handed over his CFO responsibilities to    
Markus Rauramo, formerly Senior Vice President and Group Treasurer. Hannu       
Ryöppönen remains a GET member with responsibility for Group Strategy, Corporate
Finance (including M&A), Purchasing and IT, until he retires from Stora Enso in 
spring 2009. Markus Rauramo joined the Group Executive Team.                    
Christer Ågren, who was responsible for Human Resources and IT, and Country     
Manager for Sweden, has decided to join a company outside Stora Enso. Elisabet  
Salander Björklund took over the responsibility for Human Resources in addition 
to her current responsibilities for Wood Supply, Pulp Supply and Sustainability.
The IT function reports to Hannu Ryöppönen.                                     
Mats Nordlander, Business Area (BA) head of Consumer Board, became responsible  
for China and the rest of Asia, Veli-Jussi Potka, BA head of Industrial         
Packaging, for Russia and Elisabet Salander Björklund for Latin America.        
Juha Vanhainen, BA head of Newsprint and Book Paper, took over the role of      
Country Manager Finland from Aulis Ansaharju, who remains BA head of Fine Paper.
Elisabet Salander Björklund took over the role of Country Manager Sweden.       

Share Capital                                                                   
During the quarter 2 358 A shares were converted into R shares. The latest      
conversion was recorded in the Finnish Trade Register on 15 September 2008.     

On 30 September 2008 Stora Enso had 177 152 531 A shares and 612 385 968 R      
shares in issue of which the Company held no A shares and 918 512 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.                         

Events after the Period                                                         
Maintenance Service Agreement with ABB Finalised                                
Stora Enso and ABB signed the agreement to establish a joint-venture company to 
provide maintenance services at Stora Enso's Veitsiluoto, Oulu, Varkaus, Imatra,
Enocell and Heinola mills in Finland, following the signing of the letter of    
intent announced on 10 September 2008. Operation of the company will start on 1 
January 2009. ABB will assume responsibility for the management of the company. 
Stora Enso will own 51% and ABB 49% of the shares of joint venture. An estimated
1 450 Stora Enso employees will be transferred to the new company.              

Sunila Pulp Mill Curtailments                                                   
Sunila Pulp Mill is planning to take approximately three weeks of production    
curtailment in fourth quarter in order to respond market demand.                

This report is unaudited.                                                       

Helsinki, 23 October 2008                                                       
Stora Enso Oyj                                                                  
Board of Directors                                                              
Segments Q3/08 compared with Q3/07                                              


Newsprint and Book Paper                                                        
--------------------------------------------------------------------------------
| EUR      | 2007 | Q3/0 | Q2/0 | Q3/0 | Q1-Q3 | Q1-Q3 | Chang | Chang | Chang |
| million  |      |    7 |    8 |    8 |   /07 |   /08 |   e % |   e % |   e % |
|          |      |      |      |      |       |       | Q3/08 | Q3/08 | Q1-Q3 |
|          |      |      |      |      |       |       | -Q3/0 | -Q2/0 | /08-Q |
|          |      |      |      |      |       |       |     7 |     8 | 1-Q3/ |
|          |      |      |      |      |       |       |       |       |    07 |
--------------------------------------------------------------------------------
| Sales    |    1 | 430. | 389. | 405. |     1 |     1 |  -5.8 |   4.2 |  -9.1 |
|          | 734. |    0 |    0 |    2 | 298.6 | 180.7 |       |       |       |
|          |    9 |      |      |      |       |       |       |       |       |
--------------------------------------------------------------------------------
| Operatin | 211. | 52.2 | 27.9 | 33.5 | 163.5 |  87.8 | -35.8 |  20.1 | -46.3 |
| g        |    9 |      |      |      |       |       |       |       |       |
| profit*  |      |      |      |      |       |       |       |       |       |
--------------------------------------------------------------------------------
| % of     | 12.2 | 12.1 |  7.2 |  8.3 |  12.6 |   7.4 | -31.4 |  15.3 | -41.3 |
| sales    |      |      |      |      |       |       |       |       |       |
--------------------------------------------------------------------------------
| ROOC,    | 15.7 | 15.6 |  9.5 | 11.6 |  16.0 |  10.0 | -25.6 |  22.1 | -37.5 |
| %**      |      |      |      |      |       |       |       |       |       |
--------------------------------------------------------------------------------
| Deliveri |    3 |  753 |  702 |  712 | 2 258 | 2 125 |  -5.4 |   1.4 |  -5.9 |
| es, 1    |  061 |      |      |      |       |       |       |       |       |
| 000 t    |      |      |      |      |       |       |       |       |       |
--------------------------------------------------------------------------------
| Producti |    3 |  795 |  687 |  707 | 2 326 | 2 109 | -11.1 |   2.9 |  -9.3 |
| on, 1    |  061 |      |      |      |       |       |       |       |       |
| 000 t    |      |      |      |      |       |       |       |       |       |
--------------------------------------------------------------------------------

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

Newsprint and book paper sales were EUR 405.2 million, down 6% on the third     
quarter of 2007 mainly due to the closure of Summa Mill and also decreased      
prices. Operating profit was EUR 33.5 million, down EUR 18.7 million on the     
third quarter of 2007 due to lower prices, strengthening of the euro and higher 
fibre and energy costs.                                                         

If necessary, production curtailments will be taken in the fourth quarter at    
newsprint mills in order to keep inventories low.                               

Markets                                                                         
Compared with Q3/2007                                                           
In Europe demand for newsprint was similar to a year ago, but market prices were
lower. Newsprint imports from North America fell back after rising significantly
in 2007. Deliveries by Western European suppliers were marginally lower due to a
decrease in overseas exports. Producer inventories were generally much lower    
than a year ago.                                                                

Compared with Q2/2008                                                           
In Europe demand seasonally weakened slightly, so deliveries by European        
suppliers decreased somewhat. Western European suppliers' overseas exports      
continued to rise significantly. Demand in North America weakened. Prices in    
Europe remained flat and producer inventories decreased. Prices in Asia         
increased.                                                                      

Magazine Paper                                                                  
--------------------------------------------------------------------------------
| EUR       | 2007 | Q3/0 | Q2/0 | Q3/0 | Q1-Q | Q1-Q3 | Chang | Chang | Chang |
| million   |      |    7 |    8 |    8 | 3/07 |   /08 |   e % |   e % |   e % |
|           |      |      |      |      |      |       | Q3/08 | Q3/08 | Q1-Q3 |
|           |      |      |      |      |      |       | -Q3/0 | -Q2/0 | /08-Q |
|           |      |      |      |      |      |       |     7 |     8 | 1-Q3/ |
|           |      |      |      |      |      |       |       |       |    07 |
--------------------------------------------------------------------------------
| Sales     |    2 | 587. | 540. | 544. |    1 |     1 |  -7.2 |   0.8 |  -4.3 |
|           | 296. |    3 |    5 |    9 | 706. | 632.7 |       |       |       |
|           |    3 |      |      |      |    8 |       |       |       |       |
--------------------------------------------------------------------------------
| Operating | 50.9 | 17.5 | 14.5 | 27.4 | 35.3 |  69.1 |  56.6 |  89.0 |  95.8 |
| profit*   |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| % of      |  2.2 |  3.0 |  2.7 |  5.0 |  2.1 |   4.2 |  66.7 |  85.2 | 100.0 |
| sales     |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| ROOC, %** |  2.9 |  3.7 |  3.7 |  7.2 |  2.5 |   6.1 |  94.6 |  94.6 | 144.0 |
--------------------------------------------------------------------------------
| Deliverie |    2 |  774 |  698 |  688 |    2 | 2 077 | -11.1 |  -1.4 |  -5.9 |
| s, 1 000  |  993 |      |      |      |  208 |       |       |       |       |
| t         |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Productio |    2 |  745 |  696 |  706 |    2 | 2 130 |  -5.2 |   1.4 |  -4.1 |
| n, 1 000  |  951 |      |      |      |  221 |       |       |       |       |
| t         |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------

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

Magazine paper sales were EUR 544.9 million, down 7% on the third quarter of    
2007 mainly due to mill and asset closures. Operating profit was EUR 9.9 million
higher than a year ago at EUR 27.4 million, as adverse currency movements and   
large rises in energy and raw material prices were more than offset by sales    
price increases in local currencies and lower costs due to restructuring and    
productivity improvements.                                                      

Norrsundet Pulp Mill will be permanently shut down on 15 November 2008 and PM 3 
at Kabel Mill in Germany with annual capacity 140 000 tonnes of coated magazine 
paper is planned to be permanently shutdown by the end of the year. If economic 
recession reduces market demand, Stora Enso will adjust magazine paper          
production accordingly in the fourth quarter.                                   

Markets                                                                         
Compared with Q3/2007                                                           
In Europe demand was stronger than a year ago for uncoated magazine paper, but  
weaker for coated magazine paper. Producer inventories were lower in uncoated   
grades but higher in coated grades. Prices were higher for both magazine paper  
grades.                                                                         

In Latin America demand was somewhat weaker but prices were considerably higher.

Compared with Q2/2008                                                           
In Europe demand strengthened for uncoated but weakened slightly for coated     
magazine paper. Producer inventories decreased slightly in uncoated grades and  
increased slightly in coated grades. Prices rose.                               

In Latin America deliveries and prices increased.                               

In China demand was generally stable and prices increased. Dawang Mill has      
clearly become the market leader for SC paper in China in terms of domestic     
production and prices.                                                          

Fine Paper                                                                      
--------------------------------------------------------------------------------
| EUR       | 2007 | Q3/0 | Q2/0 | Q3/0 | Q1-Q | Q1-Q3 | Chang | Chang | Chang |
| million   |      |    7 |    8 |    8 | 3/07 |   /08 |   e % |   e % |   e % |
|           |      |      |      |      |      |       | Q3/08 | Q3/08 | Q1-Q3 |
|           |      |      |      |      |      |       | -Q3/0 | -Q2/0 | /08-Q |
|           |      |      |      |      |      |       |     7 |     8 | 1-Q3/ |
|           |      |      |      |      |      |       |       |       |    07 |
--------------------------------------------------------------------------------
| Sales     |    2 | 529. | 537. | 543. |    1 |     1 |   2.7 |   1.1 |  -0.2 |
|           | 156. |    7 |    8 |    9 | 629. | 626.9 |       |       |       |
|           |    2 |      |      |      |    5 |       |       |       |       |
--------------------------------------------------------------------------------
| Operating | 163. | 34.4 | 19.7 | 33.1 | 128. |  90.1 |  -3.8 |  68.0 | -29.6 |
| profit*   |    7 |      |      |      |    0 |       |       |       |       |
--------------------------------------------------------------------------------
| % of      |  7.6 |  6.5 |  3.7 |  6.1 |  7.9 |   5.5 |  -6.2 |  64.9 | -30.4 |
| sales     |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| ROOC, %** |  9.7 |  8.2 |  4.3 |  7.5 | 10.3 |   7.0 |  -8.5 |  74.4 | -32.0 |
--------------------------------------------------------------------------------
| Deliverie |    2 |  696 |  688 |  694 |    2 | 2 108 |  -0.3 |   0.9 |  -1.7 |
| s, 1 000  |  826 |      |      |      |  145 |       |       |       |       |
| t         |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Productio |    2 |  705 |  694 |  706 |    2 | 2 096 |   0.1 |   1.7 |  -3.1 |
| n, 1 000  |  856 |      |      |      |  163 |       |       |       |       |
| t         |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------

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

Fine paper sales were EUR 543.9 million, up 3% on the third quarter of 2007     
mainly due to increased sales volumes. Operating profit was EUR 33.1 million,   
down EUR 1.3 million on a year earlier mainly due to higher energy and wood     
costs.                                                                          

Fourth quarter operating profit will be negatively impacted by weakening demand 
in uncoated fine papers. Production curtailments will be taken at the uncoated  
mills to adjust production with the demand.                                     

Markets                                                                         
Compared with Q3/2007                                                           
In Europe demand for coated fine paper was stronger, but demand for uncoated    
fine paper was slightly weaker than a year ago as economic growth slowed.       
Uncoated fine paper prices were unchanged but coated fine paper prices were     
lower. Industry inventories were lower than a year ago for both grades.         

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

Compared with Q2/2008                                                           
In Europe coated fine paper demand strengthened marginally but uncoated fine    
paper demand weakened significantly, partly for seasonal reasons. Coated fine   
paper prices were practically unchanged but uncoated fine paper prices decreased
slightly. Industry inventories were unchanged in coated grades and higher in    
uncoated grades.                                                                

In China coated fine paper demand was stable but prices came under pressure.    

Consumer Board                                                                  
--------------------------------------------------------------------------------
| EUR       | 2007 | Q3/0 | Q2/0 | Q3/0 | Q1-Q | Q1-Q3 | Chang | Chang | Chang |
| million   |      |    7 |    8 |    8 | 3/07 |   /08 |   e % |   e % |   e % |
|           |      |      |      |      |      |       | Q3/08 | Q3/08 | Q1-Q3 |
|           |      |      |      |      |      |       | -Q3/0 | -Q2/0 | /08-Q |
|           |      |      |      |      |      |       |     7 |     8 | 1-Q3/ |
|           |      |      |      |      |      |       |       |       |    07 |
--------------------------------------------------------------------------------
| Sales     |    2 | 562. | 587. | 563. |    1 |     1 |   0.3 |  -4.0 |   0.2 |
|           | 300. |    1 |    3 |    9 | 721. | 725.6 |       |       |       |
|           |    9 |      |      |      |    8 |       |       |       |       |
--------------------------------------------------------------------------------
| Operating | 158. | 27.0 | 23.0 | 37.5 | 128. | 103.0 |  38.9 |  63.0 | -19.8 |
| profit*   |    0 |      |      |      |    4 |       |       |       |       |
--------------------------------------------------------------------------------
| % of      |  6.9 |  4.8 |  3.9 |  6.7 |  7.5 |   6.0 |  39.6 |  71.8 | -20.0 |
| sales     |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| ROOC, %** |  8.4 |  5.9 |  5.5 |  9.6 |  9.2 |   8.7 |  62.7 |  74.5 |  -5.4 |
--------------------------------------------------------------------------------
| Deliverie |    2 |  632 |  643 |  617 |    1 | 1 896 |  -2.4 |  -4.0 |  -0.7 |
| s, 1 000  |  532 |      |      |      |  909 |       |       |       |       |
| t         |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Productio |    2 |  621 |  626 |  625 |    1 | 1 911 |   0.6 |  -0.2 |   0.8 |
| n, 1 000  |  533 |      |      |      |  895 |       |       |       |       |
| t         |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------

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

Consumer board sales were EUR 563.9 million, similar to the third quarter of    
2007. Operating profit was EUR 37.5 million, up EUR 10.5 million on the previous
year due to less maintenance stoppages and higher prices and pulp volumes.      

Fourth quarter operating profit is expected to be significantly impacted by a   
planned maintenance and rebuilding stoppage at Skoghall Mill in Sweden, by      
restricted production as board machine (BM) 5 starts up following rebuilding at 
Imatra Mill in Finland. Consumer Board will also take production curtailments to
adjust inventories and as preparation for the planned restructuring, including  
the planned closure of Baienfurt Mill in Germany with annual capacity 190 000   
tonnes of folding boxboard. In addition, Enocell Pulp Mill will take production 
curtailments during the fourth quarter to adjust to market demand.              

Markets                                                                         
Compared with Q3/2007                                                           
Deliveries of board were lower and deliveries of chemical pulp higher than a    
year ago. Prices were generally higher than a year ago.                         

Compared with Q2/2008                                                           
Deliveries of board and pulp decreased but prices generally increased.          

Industrial Packaging                                                            
--------------------------------------------------------------------------------
| EUR        | 2007 | Q3/0 | Q2/0 | Q3/0 | Q1-Q | Q1-Q | Chang | Chang | Chang |
| million    |      |    7 |    8 |    8 | 3/07 | 3/08 |   e % |   e % |   e % |
|            |      |      |      |      |      |      | Q3/08 | Q3/08 | Q1-Q3 |
|            |      |      |      |      |      |      | -Q3/0 | -Q2/0 | /08-Q |
|            |      |      |      |      |      |      |     7 |     8 | 1-Q3/ |
|            |      |      |      |      |      |      |       |       |    07 |
--------------------------------------------------------------------------------
| Sales      |    1 | 267. | 285. | 273. | 808. | 834. |   2.0 |  -4.3 |   3.2 |
|            | 083. |    8 |    4 |    1 |    1 |    0 |       |       |       |
|            |    5 |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Operating  | 111. | 24.7 | 20.1 | 20.0 | 83.5 | 67.7 | -19.0 |  -0.5 | -18.9 |
| profit*    |    9 |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| % of sales | 10.3 |  9.2 |  7.0 |  7.3 | 10.3 |  8.1 | -20.7 |   4.3 | -21.4 |
--------------------------------------------------------------------------------
| ROOC, %**  | 16.9 | 15.0 | 10.9 | 10.8 | 17.3 | 12.6 | -28.0 |  -0.9 | -27.2 |
--------------------------------------------------------------------------------
| Paper and  |    1 |  257 |  264 |  262 |  809 |  786 |   1.9 |  -0.8 |  -2.8 |
| board      |  065 |      |      |      |      |      |       |       |       |
| deliveries |      |      |      |      |      |      |       |       |       |
| ,          |      |      |      |      |      |      |       |       |       |
| 1 000 t    |      |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Paper and  |    1 |  253 |  266 |  272 |  798 |  808 |   7.5 |   2.3 |   1.3 |
| board      |  058 |      |      |      |      |      |       |       |       |
| production |      |      |      |      |      |      |       |       |       |
| ,          |      |      |      |      |      |      |       |       |       |
| 1 000 t    |      |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Corrugated |    1 |  275 |  276 |  269 |  798 |  808 |  -2.2 |  -2.5 |   1.3 |
| packaging  |  073 |      |      |      |      |      |       |       |       |
| deliveries |      |      |      |      |      |      |       |       |       |
| , 1 000    |      |      |      |      |      |      |       |       |       |
| 000 m2     |      |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------
| Corrugated |    1 |  277 |  279 |  271 |  813 |  817 |  -2.2 |  -2.9 |   0.5 |
| packaging  |  090 |      |      |      |      |      |       |       |       |
| production |      |      |      |      |      |      |       |       |       |
| ,          |      |      |      |      |      |      |       |       |       |
| 1 000 000  |      |      |      |      |      |      |       |       |       |
| m2         |      |      |      |      |      |      |       |       |       |
--------------------------------------------------------------------------------

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

Industrial packaging sales were EUR 273.1 million, up 2% on the third quarter of
2007 due to slightly higher prices and because new capacity started up during   
2008 at Lukhovitsy in Russia and at Wisconsin Rapids in the USA. Operating      
profit was EUR 20.0 million, down EUR 4.7 million on the third quarter of 2007  
as energy and wood costs increased faster than sales prices, and recycled       
containerboard prices actually fell substantially.                              

The offset printed micro-flute packaging plant at Komarom in Hungary started    
production in September. Corenso's greenfield core plant at Tychy in Poland is  
scheduled to start up in December 2008. Corenso's coreboard machine at Varkaus  
in Finland with annual capacity 100 000 tonnes is planned to be permanently shut
down by the end of 2008, subject to local consultation. Industrial Packaging    
operating profit in the fourth quarter will be negatively affected by the       
weakening demand. Production curtailments will be taken at the coreboard and    
sack paper machines to adjust production with demand.                           

Markets                                                                         
Compared with Q3/2007                                                           
Demand for industrial packaging products was weakened by economic uncertainty.  
Prices were higher for SC fluting, coreboard, cores and corrugated packaging,   
largely unchanged for laminating papers and MG kraft paper, and lower for sack  
paper and especially recycled containerboard.                                   

Compared with Q2/2008                                                           
Demand for corrugated packaging, cores and coreboard weakened slightly. Demand  
for recycled containerboard stabilised and demand for laminating papers remained
largely unchanged. Recycled containerboard and sack kraft prices decreased, but 
other product prices remained steady.                                           

Wood Products                                                                   
--------------------------------------------------------------------------------
| EUR       | 2007 | Q3/0 | Q2/0 | Q3/0 | Q1-Q | Q1-Q3 | Chang | Chang | Chang |
| million   |      |    7 |    8 |    8 | 3/07 |   /08 |   e % |   e % |   e % |
|           |      |      |      |      |      |       | Q3/08 | Q3/08 | Q1-Q3 |
|           |      |      |      |      |      |       | -Q3/0 | -Q2/0 | /08-Q |
|           |      |      |      |      |      |       |     7 |     8 | 1-Q3/ |
|           |      |      |      |      |      |       |       |       |    07 |
--------------------------------------------------------------------------------
| Sales     |    1 | 461. | 409. | 366. |    1 |     1 | -20.6 | -10.6 | -20.9 |
|           | 853. |    4 |    8 |    2 | 459. | 154.6 |       |       |       |
|           |    1 |      |      |      |    4 |       |       |       |       |
--------------------------------------------------------------------------------
| Operating | 150. | 37.1 | -10. | -14. | 151. | -48.6 | -138. | -31.2 | -132. |
| profit*   |    7 |      |    9 |    3 |    2 |       |     5 |       |     1 |
--------------------------------------------------------------------------------
| % of      |  8.1 |  8.0 | -2.7 | -3.9 | 10.4 |  -4.2 | -148. | -44.4 | -140. |
| sales     |      |      |      |      |      |       |     8 |       |     4 |
--------------------------------------------------------------------------------
| ROOC, %** | 19.5 | 18.9 | -5.6 | -7.5 | 26.5 |  -8.6 | -139. | -33.9 | -132. |
|           |      |      |      |      |      |       |     7 |       |     5 |
--------------------------------------------------------------------------------
| Deliverie |    6 |    1 |    1 |    1 |    4 | 4 471 |  -6.7 |  -7.8 |  -9.3 |
| s, 1 000  |  348 |  545 |  563 |  441 |  927 |       |       |       |       |
| m3        |      |      |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------

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

Wood product sales were EUR 366.2 million, down 21% on the third quarter of 2007
due to lower sales prices and deliveries as market conditions weakened          
significantly. There was an operating loss of EUR 14.3 million, a deterioration 
of EUR 51.4 million compared with the third quarter of 2007 as lower raw        
material prices, production curtailments and other cost savings were unable to  
compensate for lower sales prices and deliveries.                               

During the third quarter of 2008 the expansion of joinery component production  
at Ala Mill in Sweden was completed and Effex™ Designer Wood Panelling, an      
innovative wood panelling product, was pre-launched in markets. The permanent   
closure of Paikuse sawmill in Estonia with annual capacity 170 000 cubic metres 
is planned for December 2008. Significant further temporary closures in wood    
products are under review.                                                      

Markets                                                                         
Compared with Q3/2007                                                           
Demand and prices were significantly weaker than in the relatively good market  
conditions in the third quarter of 2007 in almost all markets.                  

Compared with Q2/2008                                                           
Weakening demand and persistent oversupply led to further declines in prices.   
The wood products industry continued to curtail production to adjust supply to  
reduced demand.                                                                 


Financials                                                                      



Key Ratios                                                                      
--------------------------------------------------------------------------------
|             | 2007 | Q1-Q | Q1-Q | Q3/0 | Q2/0 | Q3/0 | Chan | Chang | Chang |
|             |      | 3/07 | 3/08 |    7 |    8 |    8 | ge % |   e % |   e % |
|             |      |      |      |      |      |      | Q3/0 | Q3/08 | Q1-Q3 |
|             |      |      |      |      |      |      | 8-Q3 | -Q2/0 | /08-Q |
|             |      |      |      |      |      |      |  /07 |     8 | 1-Q3/ |
|             |      |      |      |      |      |      |      |       |    07 |
--------------------------------------------------------------------------------
| Continuing  |      |      |      |      |      |      |      |       |       |
| Operations  |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Earnings    | 0.01 | 0.08 | -0.0 | -0.3 | 0.04 | -0.1 | 55.6 |   n/m | -150. |
| per share   |      |      |    4 |    6 |      |    6 |      |       |     0 |
| (basic),    |      |      |      |      |      |      |      |       |       |
| EUR         |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Earnings    | 0.94 | 0.66 | 0.26 | 0.21 | 0.04 | 0.14 | -33. | 250.0 | -60.6 |
| per share   |      |      |      |      |      |      |    3 |       |       |
| excluding   |      |      |      |      |      |      |      |       |       |
| NRI, EUR    |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Cash        | 1.95 | 1.57 | 0.78 | 0.59 | 0.26 | 0.22 | -62. | -15.4 | -50.3 |
| earnings    |      |      |      |      |      |      |    7 |       |       |
| per share   |      |      |      |      |      |      |      |       |       |
| (CEPS), EUR |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| CEPS        | 1.94 | 1.44 | 0.93 | 0.46 | 0.26 | 0.37 | -19. |  42.3 | -35.4 |
| excluding   |      |      |      |      |      |      |    6 |       |       |
| NRI, EUR    |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Return on   |  1.8 |  4.8 |  1.1 | -12. |  2.7 | -5.4 | 55.0 | -300. | -77.1 |
| capital     |      |      |      |    0 |      |      |      |     0 |       |
| employed    |      |      |      |      |      |      |      |       |       |
| (ROCE), %   |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| ROCE        | 11.4 | 16.0 |  6.7 |  9.6 |  2.8 |  5.4 | -43. |  92.9 | -58.1 |
| excluding   |      |      |      |      |      |      |    8 |       |       |
| NRI, %      |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Return on   | -2.7 | -1.3 | -0.4 | -22. |  1.4 | -6.4 | 71.3 |   n/m |  69.2 |
| equity      |      |      |      |    3 |      |      |      |       |       |
| (ROE), %*   |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Debt/equity | 0.40 | 0.57 | 0.43 | 0.57 | 0.38 | 0.43 | -24. |  13.2 | -24.6 |
| ratio*      |      |      |      |      |      |      |    6 |       |       |
--------------------------------------------------------------------------------
| Equity per  | 9.48 | 9.63 | 8.87 | 9.63 | 9.72 | 8.87 | -7.9 |  -8.7 |  -7.9 |
| share, EUR* |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Equity      | 49.3 | 45.5 | 49.9 | 45.5 | 52.0 | 49.9 |  9.7 |  -4.0 |   9.7 |
| ratio, %*   |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Operating   |  1.5 |  2.7 |  0.7 | -10. |  2.5 | -5.1 | 51.9 |   n/m | -74.1 |
| profit, %   |      |      |      |    6 |      |      |      |       |       |
| of sales    |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Operating   |  9.5 |  9.0 |  4.0 |  8.5 |  2.5 |  5.2 | -38. | 108.0 | -55.6 |
| profit      |      |      |      |      |      |      |    8 |       |       |
| excluding   |      |      |      |      |      |      |      |       |       |
| NRI, % of   |      |      |      |      |      |      |      |       |       |
| sales       |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Capital     | 820. | 507. | 483. | 211. | 195. | 152. | -27. | -21.6 |  -4.7 |
| expenditure |    4 |    3 |    5 |    3 |    0 |    8 |    7 |       |       |
| , EUR       |      |      |      |      |      |      |      |       |       |
| million*    |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Capital     |   10 |   10 |   10 |   10 |   10 |   10 | -1.4 |  -5.5 |  -1.4 |
| employed,   |  022 |  203 |  058 |  203 |  639 |  058 |      |       |       |
| EUR million |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Interest-be |    2 |    4 |    2 |    4 |    2 |    2 | -31. |   3.1 | -31.0 |
| aring net   |  955 |  333 |  989 |  333 |  899 |  989 |    0 |       |       |
| liabilities |      |      |      |      |      |      |      |       |       |
| , EUR       |      |      |      |      |      |      |      |       |       |
| million*    |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Average     |   36 |   36 |   34 |   36 |   35 |   34 | -6.6 |  -2.5 |  -6.6 |
| number of   |  137 |  748 |  331 |  748 |  227 |  331 |      |       |       |
| employees   |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
| Average     |      |      |      |      |      |      |      |       |       |
| number of   |      |      |      |      |      |      |      |       |       |
| shares      |      |      |      |      |      |      |      |       |       |
| (million)   |      |      |      |      |      |      |      |       |       |
--------------------------------------------------------------------------------
|   periodic  | 788. | 788. | 788. | 788. | 788. | 788. |  0.0 |   0.0 |   0.0 |
|             |    6 |    6 |    6 |    6 |    6 |    6 |      |       |       |
--------------------------------------------------------------------------------
|  cumulative | 788. | 788. | 788. | 788. | 788. | 788. |  0.0 |   0.0 |   0.0 |
|             |    6 |    6 |    6 |    6 |    6 |    6 |      |       |       |
--------------------------------------------------------------------------------
| cumulative, | 788. | 788. | 788. | 788. | 788. | 788. |  0.0 |   0.0 |   0.0 |
| diluted     |    8 |    9 |    6 |    9 |    6 |    6 |      |       |       |
--------------------------------------------------------------------------------

NRI = Non-recurring items                                                       
* Total operations                                                              

Key Exchange Rates for the Euro                                                 
--------------------------------------------------------------------------------
| One Euro is |         Closing Rate          |          Average Rate          |
--------------------------------------------------------------------------------
|             |   31 Dec 07   |   30 Sep 08   |   31 Dec 07   |   30 Sep 08    |
--------------------------------------------------------------------------------
| SEK         |    9.4415     |    9.7943     |    9.2517     |     9.4112     |
--------------------------------------------------------------------------------
| USD         |    1.4721     |    1.4303     |    1.3710     |     1.5221     |
--------------------------------------------------------------------------------
| GBP         |    0.7333     |    0.7903     |    0.6847     |     0.7817     |
--------------------------------------------------------------------------------


Transaction Risk and Hedges in Main Currencies as at 30 September 2008          
--------------------------------------------------------------------------------
| EUR million                       |     USD |       GBP |      SEK |     JPY |
--------------------------------------------------------------------------------
| Estimated annual net operating    |     650 |       600 |    1 100 |     200 |
| cash flow exposure                |         |           |          |         |
--------------------------------------------------------------------------------
| Transaction hedges as at 30       |     325 |       303 |      660 |     100 |
| September                         |         |           |          |         |
--------------------------------------------------------------------------------
| Hedging percentage as at 30       |     50% |       51% |      60% |     50% |
| September for the next 12 months  |         |           |          |         |
--------------------------------------------------------------------------------

Condensed Consolidated Income Statement                                         
--------------------------------------------------------------------------------
| EUR million   | 2007 | Q3/0 | Q2/0 | Q3/ | Q1-Q | Q1-Q | Chan | Chan | Chang |
|               |      |    7 |    8 |  08 | 3/07 | 3/08 | ge % | ge % |  e %  |
|               |      |      |      |     |      |      | Q3/0 | Q3/0 | Q1-Q3 |
|               |      |      |      |     |      |      | 8-Q3 | 8-Q2 | /08-Q |
|               |      |      |      |     |      |      | /07  | /08  | 1-Q3/ |
|               |      |      |      |     |      |      |      |      |  07   |
--------------------------------------------------------------------------------
| Continuing    |      |      |      |     |      |      |      |      |       |
| Operations    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Sales         |   11 |    2 |    2 |   2 |    8 |    8 | -5.4 | -5.2 |  -5.0 |
|               | 848. | 876. | 871. | 722 | 867. | 426. |      |      |       |
|               |    5 |    7 |    8 |  .7 |    8 |    3 |      |      |       |
--------------------------------------------------------------------------------
| Other         | 88.4 | 25.5 | -1.6 | 23. | 55.5 | 68.7 | -6.7 |  n/m |  23.8 |
| operating     |      |      |      |   8 |      |      |      |      |       |
| income        |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Materials and |   -6 |   -1 |   -1 |  -1 |   -5 |   -5 |  2.1 |  0.5 |  -0.8 |
| services      | 962. | 748. | 720. | 712 | 132. | 174. |      |      |       |
|               |    9 |    0 |    4 |  .1 |    8 |    6 |      |      |       |
--------------------------------------------------------------------------------
| Freight and   |   -1 | -237 | -286 | -29 | -808 | -861 | -22. | -2.2 |  -6.6 |
| sales         | 134. |   .9 |   .1 | 2.4 |   .0 |   .1 |    9 |      |       |
| commissions   |    0 |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Personnel     |   -1 | -410 | -454 | -36 |   -1 |   -1 | 11.2 | 19.8 |  -0.2 |
| expenses      | 712. |   .5 |   .7 | 4.5 | 264. | 266. |      |      |       |
|               |    9 |      |      |     |    3 |    9 |      |      |       |
--------------------------------------------------------------------------------
| Other         | -761 | -136 | -177 | -22 | -421 | -530 | -63. | -26. | -25.9 |
| operating     |   .9 |   .2 |   .1 | 3.2 |   .4 |   .4 |    9 |    0 |       |
| expenses      |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Share of      | 341. | 65.4 | 12.4 | 1.6 | 109. | 37.9 | -97. | -87. | -65.4 |
| results of    |    3 |      |      |     |    5 |      |    6 |    1 |       |
| associated    |      |      |      |     |      |      |      |      |       |
| companies     |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Depreciation  |   -1 | -740 | -173 | -29 |   -1 | -642 | 60.2 | -70. |  45.0 |
| and           | 529. |   .3 |   .0 | 4.6 | 168. |   .3 |      |    3 |       |
| impairment    |    6 |      |      |     |    8 |      |      |      |       |
--------------------------------------------------------------------------------
| Operating     | 176. | -305 | 71.3 | -13 | 237. | 57.6 | 54.6 | -294 | -75.7 |
| Profit        |    9 |   .3 |      | 8.7 |    5 |      |      |   .5 |       |
--------------------------------------------------------------------------------
| Net financial | -156 | -23. | -40. | -23 | -113 | -105 |  3.8 | 43.8 |   6.4 |
| items         |   .7 |    9 |    9 |  .0 |   .0 |   .8 |      |      |       |
--------------------------------------------------------------------------------
| Profit before | 20.2 | -329 | 30.4 | -16 | 124. | -48. | 50.9 |  n/m | -138. |
| Tax           |      |   .2 |      | 1.7 |    5 |    2 |      |      |     7 |
--------------------------------------------------------------------------------
|  Income tax   | -8.8 | 54.7 | -1.8 | 42. | -52. | 24.2 | -22. |  n/m | 145.7 |
|               |      |      |      |   6 |    9 |      |    1 |      |       |
--------------------------------------------------------------------------------
| Net Profit    | 11.4 | -274 | 28.6 | -11 | 71.6 | -24. | 56.6 |  n/m | -133. |
| for the       |      |   .5 |      | 9.1 |      |    0 |      |      |     5 |
| Period from   |      |      |      |     |      |      |      |      |       |
| Continuing    |      |      |      |     |      |      |      |      |       |
| Operations    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued  |      |      |      |     |      |      |      |      |       |
| Operations    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Profit /      | -223 | -166 | -1.8 | 0.9 | -146 |  3.8 | 100. | 150. | 102.6 |
| (Loss) after  |   .8 |   .6 |      |     |   .3 |      |    5 |    0 |       |
| tax for the   |      |      |      |     |      |      |      |      |       |
| period from   |      |      |      |     |      |      |      |      |       |
| discontinued  |      |      |      |     |      |      |      |      |       |
| operations    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Profit /  | -212 | -441 | 26.8 | -11 | -74. | -20. | 73.2 |  n/m |  73.0 |
| (Loss) for    |   .4 |   .1 |      | 8.2 |    7 |    2 |      |      |       |
| the Period    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable  |      |      |      |     |      |      |      |      |       |
| to:           |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Equity        | -214 | -273 | 23.3 | -11 | 67.6 | -29. | 56.2 |  n/m | -143. |
| holders of    |   .7 |   .0 |      | 9.5 |      |    1 |      |      |     0 |
| the Parent    |      |      |      |     |      |      |      |      |       |
| Company       |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Minority      |  2.3 | -1.2 |  3.5 | 0.5 |  4.8 |  4.7 | 141. | -85. |  -2.1 |
| interests     |      |      |      |     |      |      |    7 |    7 |       |
--------------------------------------------------------------------------------
|               | -212 | -274 | 26.8 | -11 | 72.4 | -24. | 56.6 |  n/m | -133. |
|               |   .4 |   .2 |      | 9.0 |      |    4 |      |      |     7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per  |      |      |      |     |      |      |      |      |       |
| Share         |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Basic         | -0.2 | -0.5 | 0.03 | -0. | -0.1 | -0.0 | 73.2 |  n/m |  70.0 |
| earnings per  |    7 |    6 |      |  15 |    0 |    3 |      |      |       |
| share, EUR    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Diluted       | -0.2 | -0.5 | 0.03 | -0. | -0.1 | -0.0 | 73.2 |  n/m |  70.0 |
| earnings per  |    7 |    6 |      |  15 |    0 |    3 |      |      |       |
| share, EUR    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Earnings per  |      |      |      |     |      |      |      |      |       |
| Share from    |      |      |      |     |      |      |      |      |       |
| Continuing    |      |      |      |     |      |      |      |      |       |
| Operations    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Basic         | 0.01 | -0.3 | 0.04 | -0. | 0.08 | -0.0 | 55.6 |  n/m | -150. |
| earnings per  |      |    6 |      |  16 |      |    4 |      |      |     0 |
| share, EUR    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------
| Diluted       | 0.01 | -0.3 | 0.04 | -0. | 0.08 | -0.0 | 55.6 |  n/m | -150. |
| earnings per  |      |    6 |      |  16 |      |    4 |      |      |     0 |
| share, EUR    |      |      |      |     |      |      |      |      |       |
--------------------------------------------------------------------------------


Consolidated Statement of Recognised Income and Expense                         
--------------------------------------------------------------------------------
| EUR million            |   2007 |  Q3/07 |  Q2/08 |  Q3/08 | Q1-Q3/ | Q1-Q3/ |
|                        |        |        |        |        |     07 |     08 |
--------------------------------------------------------------------------------
| Total Operations       |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Defined benefit plan   |   17.3 |   -2.0 |      - |   -0.1 |    0.5 |   -0.1 |
| actuarial gains        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Tax on actuarial       |   -6.3 |    0.5 |      - |    0.2 |   -0.1 |    0.2 |
| movements              |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Aggregate fair value   |  217.3 |   -7.3 |  515.6 | -377.7 |  213.5 |    7.9 |
| movements in           |        |        |        |        |        |        |
| Available-for-Sale     |        |        |        |        |        |        |
| assets                 |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Currency and commodity |    5.6 |   17.6 |   55.0 | -116.7 |   33.9 |  -74.6 |
| hedges                 |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Associate hedges       |    5.1 |    1.7 |    7.3 |   -5.4 |    5.0 |    1.5 |
--------------------------------------------------------------------------------
| Tax on Other           |   -3.2 |   -4.0 |  -18.6 |   35.6 |  -11.0 |   26.1 |
| Comprehensive Income   |        |        |        |        |        |        |
| Movements (OCI)        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Currency translation   |  -85.3 |  -21.0 |   86.9 | -141.1 |  -23.6 | -110.5 |
| movements on equity    |        |        |        |        |        |        |
| net investments (CTA)  |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Equity net investment  |   53.7 |   11.9 |  -14.5 |   56.2 |   34.9 |   59.4 |
| hedges                 |        |        |        |        |        |        |
--------------------------------------------------------------------------------
|   Tax on equity hedges |  -13.2 |   -3.1 |    3.7 |    4.0 |   -9.1 |    5.3 |
--------------------------------------------------------------------------------
| Income and Expense     |  191.0 |   -5.7 |  635.4 | -545.0 |  244.0 |  -84.8 |
| Recognised in Equity   |        |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items From Equity      |   52.7 |  -15.2 |  -10.2 |   -5.5 |  -16.6 |  -15.7 |
| Recognised in Income   |        |        |        |        |        |        |
| Statement              |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Net Income and Expense |  243.7 |  -20.9 |  625.2 | -550.5 |  227.4 | -100.5 |
| Recognised in Equity   |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Net Profit/(Loss) for  | -212.4 | -441.1 |   26.8 | -118.2 |  -74.7 |  -20.3 |
| the period             |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Total Recognised       |   31.3 | -462.0 |  652.0 | -668.7 |  152.7 | -120.8 |
| Income and Expense for |        |        |        |        |        |        |
| the Period             |        |        |        |        |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:       |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Equity holders of the  |   29.0 | -460.7 |  648.5 | -669.2 |  148.0 | -125.5 |
| Parent Company         |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Minority interests     |    2.3 |   -1.3 |    3.5 |    0.5 |    4.7 |    4.7 |
--------------------------------------------------------------------------------
| Total Recognised       |   31.3 | -462.0 |  652.0 | -668.7 |  152.7 | -120.8 |
| Income and Expense for |        |        |        |        |        |        |
| the Period             |        |        |        |        |        |        |
--------------------------------------------------------------------------------

Condensed Consolidated Cash Flow Statement - Group Total                        
--------------------------------------------------------------------------------
| EUR million                                  |      Q1-Q3/07 |      Q1-Q3/08 |
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities          |               |               |
--------------------------------------------------------------------------------
| Operating profit                             |         149.1 |          69.4 |
--------------------------------------------------------------------------------
| Cash flow from SORIE                         |          48.4 |          -3.7 |
--------------------------------------------------------------------------------
| Adjustments                                  |       1 359.2 |         629.0 |
--------------------------------------------------------------------------------
| Change in net working capital                |        -530.8 |        -244.0 |
--------------------------------------------------------------------------------
| Cash Flow Generated by Operations            |       1 025.9 |         450.7 |
--------------------------------------------------------------------------------
| Net financials items paid                    |        -197.0 |        -128.3 |
--------------------------------------------------------------------------------
| Income taxes paid                            |        -114.6 |         -22.2 |
--------------------------------------------------------------------------------
| Net Cash Provided by Operating Activities    |         714.3 |         300.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities          |               |               |
--------------------------------------------------------------------------------
| Acquisitions of subsidiaries                 |         -71.2 |          -4.2 |
--------------------------------------------------------------------------------
| Acquisitions of associated companies         |         -81.3 |         -52.4 |
--------------------------------------------------------------------------------
| Proceeds from sale of Papyrus shares         |             - |         144.2 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets and other |          79.1 |          64.3 |
| shares                                       |               |               |
--------------------------------------------------------------------------------
| Capital expenditure                          |        -507.3 |        -483.5 |
--------------------------------------------------------------------------------
| Proceeds from (payment of) the non-current   |          18.1 |         -17.3 |
| receivables, net                             |               |               |
--------------------------------------------------------------------------------
| Net Cash Used in Investing Activities        |        -562.6 |        -348.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing Activities          |               |               |
--------------------------------------------------------------------------------
| Proceeds from issue of new long-term debt    |         139.0 |         278.0 |
--------------------------------------------------------------------------------
| Long-term debt, payments                     |        -534.2 |        -648.4 |
--------------------------------------------------------------------------------
| Papyrus loans repaid by Altor                |             - |         345.1 |
--------------------------------------------------------------------------------
| Change in short-term borrowings              |         500.8 |         -30.6 |
--------------------------------------------------------------------------------
| Dividends paid                               |        -354.9 |        -354.9 |
--------------------------------------------------------------------------------
| Minority equity injections less dividends    |           7.1 |          -2.7 |
--------------------------------------------------------------------------------
| Repurchase / Disposal of own shares          |          -1.0 |             - |
--------------------------------------------------------------------------------
| Net Cash Used in Financing Activities        |        -243.2 |        -413.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Decrease in Cash and Cash Equivalents    |         -91.5 |        -462.2 |
--------------------------------------------------------------------------------
| Cash and bank in disposed companies          |             - |         -76.6 |
--------------------------------------------------------------------------------
| Translation adjustment                       |          16.1 |          51.5 |
--------------------------------------------------------------------------------
| Net cash and cash equivalents at the         |         309.6 |         879.3 |
| beginning of period                          |               |               |
--------------------------------------------------------------------------------
| Net Cash and Cash Equivalents at Period End  |         234.2 |         392.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and Cash Equivalents at Period End      |         344.7 |         398.5 |
--------------------------------------------------------------------------------
| Bank Overdrafts at Period End                |        -110.5 |          -6.5 |
--------------------------------------------------------------------------------
| Net Cash and Cash Equivalents at Period End  |         234.2 |         392.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisitions of Subsidiary Companies         |               |               |
--------------------------------------------------------------------------------
|   Cash and cash equivalents                  |             - |             - |
--------------------------------------------------------------------------------
|   Working capital                            |             - |           0.2 |
--------------------------------------------------------------------------------
|   Fixed assets                               |             - |           4.2 |
--------------------------------------------------------------------------------
|   Interest-bearing assets                    |             - |           0.0 |
--------------------------------------------------------------------------------
|   Tax liabilities                            |             - |          -0.5 |
--------------------------------------------------------------------------------
|   Interest-bearing liabilities               |             - |          -1.2 |
--------------------------------------------------------------------------------
|   Minority interests                         |          71.2 |           1.5 |
--------------------------------------------------------------------------------
| Fair Value of Net Assets                     |          71.2 |           4.2 |
--------------------------------------------------------------------------------
|   Goodwill                                   |            -  |             - |
--------------------------------------------------------------------------------
| Total Purchase Consideration                 |          71.2 |           4.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Disposal of Subsidiary Companies             |               |               |
--------------------------------------------------------------------------------
|   Cash and cash equivalents                  |             - |          76.6 |
--------------------------------------------------------------------------------
|   Working capital                            |           1.0 |         187.5 |
--------------------------------------------------------------------------------
|   Fixed assets                               |           1.1 |         294.7 |
--------------------------------------------------------------------------------
|   Interest-bearing assets                    |             - |          93.0 |
--------------------------------------------------------------------------------
|   Tax liabilities                            |             - |         -25.9 |
--------------------------------------------------------------------------------
|   Interest-bearing liabilities               |          -0.1 |        -406.2 |
--------------------------------------------------------------------------------
|   Minority interests                         |          -0.5 |             - |
--------------------------------------------------------------------------------
| Net Assets in Divested Companies             |           1.5 |         219.7 |
--------------------------------------------------------------------------------
|   Income Statement capital gain              |           0.5 |           1.5 |
--------------------------------------------------------------------------------
| Total Disposal Consideration Received in     |           2.0 |         221.2 |
| Cash and Kind                                |               |               |
--------------------------------------------------------------------------------


Property, Plant and Equipment, Intangible Assets and Goodwill                   
--------------------------------------------------------------------------------
| EUR million                         |       2007 |    Q1-Q3/07 |    Q1-Q3/08 |
--------------------------------------------------------------------------------
|   Carrying value at 1 January       |   10 440.4 |    10 440.4 |     7 232.4 |
--------------------------------------------------------------------------------
| Acquisition of subsidiary companies |       10.7 |        10.2 |         4.2 |
--------------------------------------------------------------------------------
|   Capital Expenditure               |      770.2 |       475.2 |       444.8 |
--------------------------------------------------------------------------------
|   Additions in biological assets    |       50.2 |        32.1 |        38.6 |
--------------------------------------------------------------------------------
|   Change in emission rights         |      -92.9 |       -90.6 |        75.9 |
--------------------------------------------------------------------------------
|   Disposals                         |      -52.9 |       -45.5 |       -50.4 |
--------------------------------------------------------------------------------
|   Disposals of subsidiary companies |   -1 780.0 |    -1 723.3 |      -294.7 |
--------------------------------------------------------------------------------
| Depreciation and impairment,        |   -1 529.6 |    -1 168.8 |      -642.3 |
| continuing operations               |            |             |             |
--------------------------------------------------------------------------------
| Depreciation and impairment,        |     -351.7 |      -311.9 |       -27.8 |
| discontinued operations             |            |             |             |
--------------------------------------------------------------------------------
|   Translation difference and other  |     -232.0 |      -139.4 |       -48.0 |
--------------------------------------------------------------------------------
| Balance Sheet Total                 |    7 232.4 |     7 478.4 |     6 732.7 |
--------------------------------------------------------------------------------


Borrowings                                                                      
--------------------------------------------------------------------------------
| EUR million                         |     31 Dec | 30 Sep 2007 | 30 Sep 2008 |
|                                     |       2007 |             |             |
--------------------------------------------------------------------------------
| Non-current borrowings              |    3 354.8 |     2 646.7 |     3 404.4 |
--------------------------------------------------------------------------------
| Current borrowings                  |    1 086.6 |     1 246.3 |       585.5 |
--------------------------------------------------------------------------------
|                                     |    4 441.4 |     3 893.0 |     3 989.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     |       2007 |  Q1-Q3/2007 |  Q1-Q3/2008 |
--------------------------------------------------------------------------------
| Carrying value at 1 January         |    5 227.9 |     5 227.9 |     4 441.4 |
--------------------------------------------------------------------------------
| Debt acquired with new subsidiaries |        1.2 |           - |         1.2 |
--------------------------------------------------------------------------------
| Debt disposed with sold             |   -1 019.3 |           - |      -406.2 |
| subsidiaries                        |            |             |             |
--------------------------------------------------------------------------------
| Proceeds from / (payments) of       |      358.3 |      -101.0 |       -44.5 |
| borrowings (net)                    |            |             |             |
--------------------------------------------------------------------------------
| Discontinued operations             |          - |    -1 149.0 |           - |
--------------------------------------------------------------------------------
| Translation difference and other    |     -126.7 |       -84.9 |        -2.0 |
--------------------------------------------------------------------------------
| Total Borrowings                    |    4 441.4 |     3 893.0 |     3 989.9 |
--------------------------------------------------------------------------------


Discontinued Operations                                                         
--------------------------------------------------------------------------------
| EUR million                                                  |      Q1-Q3/08 |
--------------------------------------------------------------------------------
| Sales                                                        |         710.5 |
--------------------------------------------------------------------------------
| Operating costs                                              |        -695.0 |
--------------------------------------------------------------------------------
| Operating profit before remeasurement to fair value          |          15.5 |
--------------------------------------------------------------------------------
| Remeasurement to fair value less CTA                         |          -3.7 |
--------------------------------------------------------------------------------
| Operating profit                                             |          11.8 |
--------------------------------------------------------------------------------
| Net financial items                                          |          -5.6 |
--------------------------------------------------------------------------------
| Profit before Tax                                            |           6.2 |
--------------------------------------------------------------------------------
| Income tax                                                   |          -2.0 |
--------------------------------------------------------------------------------
| Profit after Tax from Discontinued Operations                |           4.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash provided by operating activities                    |          18.2 |
--------------------------------------------------------------------------------
| Net cash used in investing activities                        |          -3.7 |
--------------------------------------------------------------------------------
| Net cash provided by financing activities                    |           2.5 |
--------------------------------------------------------------------------------
| Net increase in cash and cash equivalents                    |          17.0 |
--------------------------------------------------------------------------------

Condensed Consolidated Balance Sheet                                            
--------------------------------------------------------------------------------
| EUR million                        |     | 31 Dec 07 | 30 Sep 07 | 30 Sep 08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets                             |     |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fixed Assets and Other Non-current |     |           |           |           |
| Investments                        |     |           |           |           |
--------------------------------------------------------------------------------
|   Fixed assets                     |  O  |   7 138.5 |   7 332.8 |   6 536.7 |
--------------------------------------------------------------------------------
|   Biological assets                |  O  |      88.7 |     138.1 |     114.9 |
--------------------------------------------------------------------------------
|   Emission rights                  |  O  |       5.2 |       7.5 |      81.1 |
--------------------------------------------------------------------------------
| Investment in associated companies |  O  |   1 154.5 |     963.6 |   1 177.1 |
--------------------------------------------------------------------------------
| Available-for-sale: Listed         |  I  |     161.8 |      48.0 |     174.2 |
| securities                         |     |           |           |           |
--------------------------------------------------------------------------------
| Available-for-sale: Unlisted       |  O  |   1 260.8 |   1 000.2 |   1 312.1 |
| shares                             |     |           |           |           |
--------------------------------------------------------------------------------
|   Non-current loan receivables     |  I  |     126.5 |     129.2 |     140.5 |
--------------------------------------------------------------------------------
|   Deferred tax assets              |  T  |      63.7 |      82.7 |     113.9 |
--------------------------------------------------------------------------------
|   Other non-current assets         |  O  |      22.6 |      19.6 |      28.8 |
--------------------------------------------------------------------------------
|                                    |     |  10 022.3 |   9 721.7 |   9 679.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current Assets                     |     |           |           |           |
--------------------------------------------------------------------------------
|   Inventories                      |  O  |   1 992.6 |   2 073.0 |   1 910.5 |
--------------------------------------------------------------------------------
|   Tax receivables                  |  T  |      34.3 |     175.6 |      51.6 |
--------------------------------------------------------------------------------
|   Operative receivables            |  O  |   2 063.1 |   2 138.7 |   1 841.3 |
--------------------------------------------------------------------------------
|   Interest-bearing receivables     |  I  |     227.8 |     171.8 |     287.2 |
--------------------------------------------------------------------------------
|   Cash and cash equivalents        |  I  |     970.7 |     180.1 |     398.5 |
--------------------------------------------------------------------------------
|                                    |     |   5 288.5 |   4 739.2 |   4 489.1 |
--------------------------------------------------------------------------------
| Asset of disposal group classified as    |         - |   2 332.9 |         - |
| held for sale                            |           |           |           |
--------------------------------------------------------------------------------
|                                    |     |   5 288.5 |   7 072.1 |   4 489.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Assets                       |     |  15 310.8 |  16 793.8 |  14 168.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and Liabilities             |     |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to Company     |     |   7 476.1 |   7 592.6 |   6 995.0 |
| shareholders                       |     |           |           |           |
--------------------------------------------------------------------------------
|  Minority interests                |     |      71.9 |      43.6 |      74.0 |
--------------------------------------------------------------------------------
| Total Equity                       |     |   7 548.0 |   7 636.2 |   7 069.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current Liabilities            |     |           |           |           |
--------------------------------------------------------------------------------
| Post-employment benefit provisions |  O  |     327.3 |     347.8 |     305.7 |
--------------------------------------------------------------------------------
|  Other provisions                  |  O  |     135.9 |      96.3 |     127.8 |
--------------------------------------------------------------------------------
|  Deferred tax liabilities          |  T  |     582.0 |     735.7 |     599.6 |
--------------------------------------------------------------------------------
|  Non-current debt                  |  I  |   3 354.8 |   2 646.7 |   3 404.4 |
--------------------------------------------------------------------------------
| Other non-current operative        |  O  |     170.2 |     191.2 |     145.1 |
| liabilities                        |     |           |           |           |
--------------------------------------------------------------------------------
|                                    |     |   4 570.2 |   4 017.7 |   4 582.6 |
--------------------------------------------------------------------------------
| Current Liabilities                |     |           |           |           |
--------------------------------------------------------------------------------
|  Current portion of long-term debt |  I  |     513.1 |     408.3 |      94.2 |
--------------------------------------------------------------------------------
|  Interest-bearing liabilities      |  I  |     573.5 |     838.0 |     491.3 |
--------------------------------------------------------------------------------
|  Operative liabilities             |  O  |   1 971.4 |   1 873.4 |   1 869.3 |
--------------------------------------------------------------------------------
|  Tax liabilities                   |  T  |     134.6 |     256.6 |      62.0 |
--------------------------------------------------------------------------------
|                                    |     |   3 192.6 |   3 376.3 |   2 516.8 |
--------------------------------------------------------------------------------
| Liabilities directly associated    |     |         - |   1 763.6 |         - |
| with the assets                    |     |           |           |           |
| classified as held                 |     |           |           |           |
| for sale                           |     |           |           |           |
--------------------------------------------------------------------------------
|                                    |     |   3 192.6 |   5 139.9 |   2 516.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Liabilities                  |     |   7 762.8 |   9 157.6 |   7 099.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Equity and Liabilities       |     |  15 310.8 |  16 793.8 |  14 168.4 |
--------------------------------------------------------------------------------

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

Changes in Group Shareholders' Equity                                           
--------------------------------------------------------------------------------
| EUR million          | Share | Capit | Treas |  OCI  |   CTA | Retai | Total |
|                      | Capit |    al |   ury |       |       |   ned |       |
|                      |    al | Reser | Share |       |       | Earni |       |
|                      |       |   ves |     s |       |       |   ngs |       |
--------------------------------------------------------------------------------
| Balance at 31        |     1 | 784.8 | -259. | 468.0 | -127. |     4 |     7 |
| December 2005        | 382.1 |       |     9 |       |     1 | 972.2 | 220.1 |
--------------------------------------------------------------------------------
| Cancellation of      | -39.9 | -15.9 | 249.1 |     - |     - | -193. |   0.0 |
| Stora Enso Oyj       |       |       |       |       |       |     3 |       |
| shares               |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Dividend (EUR 0.45   |     - |     - |     - |     - |     - | -354. | -354. |
| per share)           |       |       |       |       |       |     9 |     9 |
--------------------------------------------------------------------------------
| Options exercised    |     - |  -2.0 |   0.3 |     - |     - |     - |  -1.7 |
--------------------------------------------------------------------------------
| Buy-out of minority  |     - |     - |     - |     - |     - |  -0.1 |  -0.1 |
| interests            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net profit for the   |     - |     - |     - |     - |  -5.8 | 585.0 | 579.2 |
| period               |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net expense          |     - |     - |     - | 267.6 |   0.9 |  88.5 | 357.0 |
| recognised directly  |       |       |       |       |       |       |       |
| to equity            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Balance at 31        |     1 | 766.9 | -10.5 | 735.6 | -132. |     5 |     7 |
| December 2006        | 342.2 |       |       |       |     0 | 097.4 | 799.6 |
--------------------------------------------------------------------------------
| Dividend (EUR 0.45   |     - |     - |     - |     - |     - | -354. | -354. |
| per share)           |       |       |       |       |       |     9 |     9 |
--------------------------------------------------------------------------------
| Options exercised    |     - |  -1.2 |   0.2 |     - |   8.5 |  -8.5 |  -1.0 |
--------------------------------------------------------------------------------
| Buy-out of minority  |     - |     - |     - |     - |     - |   0.9 |   0.9 |
| interests            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net profit for the   |     - |     - |     - |     - | -16.6 | -79.4 | -96.0 |
| period               |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net income           |     - |     - |     - | 241.4 |   2.2 |   0.4 | 244.0 |
| recognised directly  |       |       |       |       |       |       |       |
| to equity            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Balance at 30        |     1 | 765.7 | -10.3 | 977.0 | -137. |     4 |     7 |
| September 2007       | 342.2 |       |       |       |     9 | 655.9 | 592.6 |
--------------------------------------------------------------------------------
| Options exercised    |     - |  -1.2 |   0.1 |     - |     - |     - |  -1.1 |
--------------------------------------------------------------------------------
| Buy-out of minority  |     - |     - |     - |     - |     - |   3.6 |   3.6 |
| interests            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net loss for the     |     - |     - |     - |     - |  69.3 | -135. | -66.0 |
| period               |       |       |       |       |       |     3 |       |
--------------------------------------------------------------------------------
| Net expense          |     - |     - |     - | -16.6 | -47.0 |  10.6 | -53.0 |
| recognised directly  |       |       |       |       |       |       |       |
| to equity            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Balance at 31        |     1 | 764.5 | -10.2 | 960.4 | -115. |     4 |     7 |
| December 2007        | 342.2 |       |       |       |     6 | 534.8 | 476.1 |
--------------------------------------------------------------------------------
| Dividend (EUR 0.45   |     - |     - |     - |     - |     - | -354. | -354. |
| per share)           |       |       |       |       |       |     9 |     9 |
--------------------------------------------------------------------------------
| Buy-out of minority  |     - |     - |     - |     - |     - |  -0.8 |  -0.8 |
| interests            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net profit for the   |     - |     - |     - |     - | -15.7 | -24.9 | -40.6 |
| period               |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Net income           |     - |     - |     - | -39.1 | -45.8 |   0.1 | -84.8 |
| recognised directly  |       |       |       |       |       |       |       |
| to equity            |       |       |       |       |       |       |       |
--------------------------------------------------------------------------------
| Balance at 30        |     1 | 764.5 | -10.2 | 921.3 | -177. |     4 |     6 |
| September 2008       | 342.2 |       |       |       |     1 | 154.3 | 995.0 |
--------------------------------------------------------------------------------

CTA = Cumulative Translation Adjustment                                         
OCI = Other Comprehensive Income                                                

Commitments and Contingencies                                                   
--------------------------------------------------------------------------------
| EUR million                     |    31 Dec 07 |    30 Sep 07 |    30 Sep 08 |
--------------------------------------------------------------------------------
| On Own Behalf                   |              |              |              |
--------------------------------------------------------------------------------
|   Pledges given                 |          0.8 |          0.8 |          0.8 |
--------------------------------------------------------------------------------
|   Mortgages                     |        135.9 |        129.6 |         85.3 |
--------------------------------------------------------------------------------
| On Behalf of Associated         |              |              |              |
| Companies                       |              |              |              |
--------------------------------------------------------------------------------
|   Guarantees                    |        249.7 |        261.5 |        203.5 |
--------------------------------------------------------------------------------
| On Behalf of Others             |              |              |              |
--------------------------------------------------------------------------------
|   Guarantees                    |        118.5 |          9.9 |        162.1 |
--------------------------------------------------------------------------------
| Other Commitments, Own          |              |              |              |
--------------------------------------------------------------------------------
| Leasing commitments, in next 12 |         30.6 |         31.1 |         28.2 |
| months                          |              |              |              |
--------------------------------------------------------------------------------
| Leasing commitments, after next |        112.2 |        117.7 |        102.6 |
| 12 months                       |              |              |              |
--------------------------------------------------------------------------------
|   Pension liabilities           |          0.2 |          0.2 |          0.2 |
--------------------------------------------------------------------------------
|   Other commitments             |         22.5 |         17.0 |         26.0 |
--------------------------------------------------------------------------------
| Total                           |        670.4 |        567.8 |        608.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|   Pledges given                 |          0.8 |          0.8 |          0.8 |
--------------------------------------------------------------------------------
|   Mortgages                     |        135.9 |        129.6 |         85.3 |
--------------------------------------------------------------------------------
|   Guarantees                    |        368.2 |        271.4 |        365.6 |
--------------------------------------------------------------------------------
|   Leasing commitments           |        142.8 |        148.8 |        130.8 |
--------------------------------------------------------------------------------
|   Pension liabilities           |          0.2 |          0.2 |          0.2 |
--------------------------------------------------------------------------------
|   Other commitments             |         22.5 |         17.0 |         26.0 |
--------------------------------------------------------------------------------
| Total                           |        670.4 |        567.8 |        608.7 |
--------------------------------------------------------------------------------

Purchase Agreement Commitments                                                  
--------------------------------------------------------------------------------
| EUR million                 |          Scheduled Contract Payments           |
--------------------------------------------------------------------------------
| Type of Supply              | Contra |    2008 | 2009-10 | 2011-12 |  2013+  |
|                             |     ct |         |         |         |         |
|                             | Total  |         |         |         |         |
--------------------------------------------------------------------------------
|  | Fibre                    |  1 806 |     123 |     431 |     405 |     847 |
--------------------------------------------------------------------------------
|  | Energy                   |  1 671 |     204 |     635 |     343 |     489 |
--------------------------------------------------------------------------------
|  | Logistics                |    528 |      33 |     139 |     115 |     241 |
--------------------------------------------------------------------------------
|  | Other Production costs   |    815 |      65 |     100 |      54 |     596 |
--------------------------------------------------------------------------------
|  |                          |  4 820 |     425 |   1 305 |     917 |   2 173 |
--------------------------------------------------------------------------------
| Capital Expenditure         |    140 |     126 |      14 |       0 |       0 |
--------------------------------------------------------------------------------
| Total Contractual           |  4 960 |     551 |   1 319 |     917 |   2 173 |
| Commitments at 30 September |        |         |         |         |         |
| 2008                        |        |         |         |         |         |
--------------------------------------------------------------------------------


Net Fair Values of Derivative Financial Instruments                             
--------------------------------------------------------------------------------
| EUR million  |   31 Dec 07 |   30 Sep 07 |             30 Sep 08             |
--------------------------------------------------------------------------------
|              |         Net |         Net |   Positive |  Negative |      Net |
|              |        Fair |        Fair |          F |      Fair |     Fair |
|              |          Va |          Va |        air |      Valu |   Values |
|              |        lues |        lues |     Values |        es |          |
--------------------------------------------------------------------------------
| Interest     |        59.4 |        29.3 |      136.5 |     -52.5 |     84.0 |
| rate swaps   |             |             |            |           |          |
--------------------------------------------------------------------------------
| Interest     |        -6.1 |        -1.8 |        0.0 |     -12.4 |    -12.4 |
| rate options |             |             |            |           |          |
--------------------------------------------------------------------------------
| Forward      |       -19.7 |       -15.2 |       86.2 |     -45.3 |     40.9 |
| contracts    |             |             |            |           |          |
--------------------------------------------------------------------------------
| FX options   |        17.2 |        15.8 |        8.4 |     -24.5 |    -16.1 |
--------------------------------------------------------------------------------
| Commodity    |        92.0 |        93.2 |      114.7 |     -36.6 |     78.1 |
| contracts    |             |             |            |           |          |
--------------------------------------------------------------------------------
| Equity swaps |       -34.3 |        25.1 |       10.3 |     -44.6 |    -34.3 |
--------------------------------------------------------------------------------
| Equity       |        -0.6 |         0.2 |        0.0 |      -2.9 |     -2.9 |
| options      |             |             |            |           |          |
--------------------------------------------------------------------------------
| Total        |       107.9 |       146.6 |      356.1 |    -218.8 |    137.3 |
--------------------------------------------------------------------------------

Nominal Values of Derivative Financial Instruments                              
--------------------------------------------------------------------------------
| EUR million       |        31 Dec 07 |         30 Sep 07 |         30 Sep 08 |
--------------------------------------------------------------------------------
| Interest Rate     |                  |                   |                   |
| Derivatives       |                  |                   |                   |
--------------------------------------------------------------------------------
| Interest rate     |                  |                   |                   |
| swaps             |                  |                   |                   |
--------------------------------------------------------------------------------
| Maturity under 1  |             69.9 |               0.0 |              74.4 |
| year              |                  |                   |                   |
--------------------------------------------------------------------------------
| Maturity 2-5      |          2 164.4 |           2 285.2 |           2 259.3 |
| years             |                  |                   |                   |
--------------------------------------------------------------------------------
| Maturity 6-10     |          2 470.9 |           2 612.6 |           2 329.2 |
| years             |                  |                   |                   |
--------------------------------------------------------------------------------
|                   |          4 705.2 |           4 897.8 |           4 662.9 |
--------------------------------------------------------------------------------
| Interest rate     |            491.6 |             595.2 |             390.7 |
| options           |                  |                   |                   |
--------------------------------------------------------------------------------
| Total             |          5 196.8 |           5 493.0 |           5 053.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign Exchange  |                  |                   |                   |
| Derivatives       |                  |                   |                   |
--------------------------------------------------------------------------------
| Forward contracts |          3 114.1 |           1 903.1 |           3 297.0 |
--------------------------------------------------------------------------------
|   FX Options      |          2 607.7 |           2 082.6 |           1 583.8 |
--------------------------------------------------------------------------------
| Total             |          5 721.8 |           3 985.7 |           4 880.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity         |                  |                   |                   |
| Derivatives       |                  |                   |                   |
--------------------------------------------------------------------------------
| Commodity         |            417.2 |             502.5 |             507.3 |
| contracts         |                  |                   |                   |
--------------------------------------------------------------------------------
| Total             |            417.2 |             502.5 |             507.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity swaps      |                  |                   |                   |
--------------------------------------------------------------------------------
|   Equity swaps    |            213.9 |             220.4 |             158.2 |
--------------------------------------------------------------------------------
|   Equity options  |             22.0 |               4.3 |              21.9 |
--------------------------------------------------------------------------------
| Total             |            235.9 |             224.7 |             180.1 |
--------------------------------------------------------------------------------


Sales by Segment                                                                
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/07 |   2007 | Q1/08 | Q2/08 | Q3/08 |
|                |    7 |    7 |    7 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Newsprint and  | 438. | 429. | 430. | 436.3 |      1 | 386.5 | 389.0 | 405.2 |
| Book Paper     |    7 |    9 |    0 |       |  734.9 |       |       |       |
--------------------------------------------------------------------------------
| Magazine Paper | 566. | 552. | 587. | 589.5 |      2 | 547.3 | 540.5 | 544.9 |
|                |    6 |    9 |    3 |       |  296.3 |       |       |       |
--------------------------------------------------------------------------------
| Fine Paper     | 577. | 522. | 529. | 526.7 |      2 | 545.2 | 537.8 | 543.9 |
|                |    0 |    8 |    7 |       |  156.2 |       |       |       |
--------------------------------------------------------------------------------
| Consumer Board | 589. | 570. | 562. | 579.1 |      2 | 574.4 | 587.3 | 563.9 |
|                |    6 |    1 |    1 |       |  300.9 |       |       |       |
--------------------------------------------------------------------------------
| Industrial     | 266. | 274. | 267. | 275.4 |      1 | 275.5 | 285.4 | 273.1 |
| Packaging      |    1 |    2 |    8 |       |  083.5 |       |       |       |
--------------------------------------------------------------------------------
| Wood Products  | 472. | 525. | 461. | 393.7 |      1 | 378.6 | 409.8 | 366.2 |
|                |    3 |    7 |    4 |       |  853.1 |       |       |       |
--------------------------------------------------------------------------------
| Other and      | 90.9 | 114. | 38.4 | 180.0 |  423.6 | 124.3 | 122.0 |  25.5 |
| elimination    |      |    3 |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Continuing     |    3 |    2 |    2 |     2 |     11 |     2 |     2 |     2 |
| Operations     | 001. | 989. | 876. | 980.7 |  848.5 | 831.8 | 871.8 | 722.7 |
|                |    2 |    9 |    7 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Discontinued   |    1 | 963. | 959. | 969.1 |      3 | 529.6 | 180.5 |   0.4 |
| operations     | 020. |    7 |    7 |       |  913.3 |       |       |       |
|                |    8 |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Elimination    |    - |    - |    - |     - |      - |     - |     - |   0.0 |
|                | 166. | 148. | 151. | 151.8 |  618.3 | 134.4 |  45.8 |       |
|                |    6 |    4 |    5 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Total          |    3 |    3 |    3 |     3 |     15 |     3 |     3 |     2 |
|                | 855. | 805. | 684. | 798.0 |  143.5 | 227.0 | 006.5 | 723.1 |
|                |    4 |    2 |    9 |       |        |       |       |       |
--------------------------------------------------------------------------------

Operating Profit by Segment excluding NRI and Fair Valuations                   
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/07 |   2007 | Q1/08 | Q2/08 | Q3/08 |
|                |    7 |    7 |    7 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Newsprint and  | 61.1 | 50.2 | 52.2 |  48.4 |  211.9 |  26.4 |  27.9 |  33.5 |
| Book Paper     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Magazine Paper |  9.4 |  8.4 | 17.5 |  15.6 |   50.9 |  27.2 |  14.5 |  27.4 |
--------------------------------------------------------------------------------
| Fine Paper     | 55.1 | 38.5 | 34.4 |  35.7 |  163.7 |  37.3 |  19.7 |  33.1 |
--------------------------------------------------------------------------------
| Consumer Board | 72.4 | 29.0 | 27.0 |  29.6 |  158.0 |  42.5 |  23.0 |  37.5 |
--------------------------------------------------------------------------------
| Industrial     | 29.2 | 29.6 | 24.7 |  28.4 |  111.9 |  27.6 |  20.1 |  20.0 |
| Packaging      |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Wood Products  | 54.8 | 59.3 | 37.1 |  -0.5 |  150.7 | -23.4 | -10.9 | -14.3 |
--------------------------------------------------------------------------------
| Other          | -11. | -12. | -11. | -25.9 |  -60.3 | -13.2 |  -8.2 |  -7.8 |
|                |    2 |    1 |    1 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Operating      | 270. | 202. | 181. | 131.3 |  786.8 | 124.4 |  86.1 | 129.4 |
| profit excl.   |    8 |    9 |    8 |       |        |       |       |       |
| NRI by Segment |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Share of       | 24.1 | 20.0 | 17.4 |  12.8 |   74.3 |  15.7 |   8.3 |  -3.9 |
| results of     |      |      |      |       |        |       |       |       |
| associated     |      |      |      |       |        |       |       |       |
| companies      |      |      |      |       |        |       |       |       |
| excl. fair     |      |      |      |       |        |       |       |       |
| valuations*    |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Operating      | 294. | 222. | 199. | 144.1 |  861.1 | 140.1 |  94.4 | 125.5 |
| profit excl.   |    9 |    9 |    2 |       |        |       |       |       |
| NRI and Fair   |      |      |      |       |        |       |       |       |
| Valuations*    |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Fair           | 15.7 | 21.3 | 44.9 | 183.8 |  265.7 | -15.1 | -21.8 |  15.2 |
| valuations*    |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Operating      | 310. | 244. | 244. | 327.9 |      1 | 125.0 |  72.6 | 140.7 |
| profit excl.   |    6 |    2 |    1 |       |  126.8 |       |       |       |
| NRI            |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| NRI            | -12. |    - | -549 | -388. | -949.9 |     - |  -1.3 | -279. |
|                |    0 |      |   .4 |     5 |        |       |       |     4 |
--------------------------------------------------------------------------------
| Operating      | 298. | 244. | -305 | -60.6 |  176.9 | 125.0 |  71.3 | -138. |
| Profit (IFRS)  |    6 |    2 |   .3 |       |        |       |       |     7 |
--------------------------------------------------------------------------------
| Net financial  | -36. | -53. | -23. | -43.7 | -156.7 | -41.9 | -40.9 | -23.0 |
| items          |    1 |    0 |    9 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Profit before  | 262. | 191. | -329 | -104. |   20.2 |  83.1 |  30.4 | -161. |
| Tax and        |    5 |    2 |   .2 |     3 |        |       |       |     7 |
| Minority       |      |      |      |       |        |       |       |       |
| Interests      |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Income tax     | -65. | -42. | 54.7 |  44.1 |   -8.8 | -16.6 |  -1.8 |  42.6 |
| expense        |    3 |    3 |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Net Profit     | 197. | 148. | -274 | -60.2 |   11.4 |  66.5 |  28.6 | -119. |
| from           |    2 |    9 |   .5 |       |        |       |       |     1 |
| Continuing     |      |      |      |       |        |       |       |       |
| Operations     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Discontinued Operations      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Net profit     | 25.3 | -5.0 | -166 | -77.5 | -223.8 |   4.7 |  -1.8 |   0.9 |
| after tax for  |      |      |   .6 |       |        |       |       |       |
| the period     |      |      |      |       |        |       |       |       |
| from           |      |      |      |       |        |       |       |       |
| discontinued   |      |      |      |       |        |       |       |       |
| operations     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Net Profit     | 222. | 143. | -441 | -137. | -212.4 |  71.2 |  26.8 | -118. |
|                |    5 |    9 |   .1 |     7 |        |       |       |     2 |
--------------------------------------------------------------------------------

* Fair valuations and related items include Total Return Swaps (TRS), synthetic 
options and CO2 emission rights, and valuations of biological assets mainly     
related to associated companies' forest assets                                  

NRI by Segment                                                                  
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/07 |   2007 | Q1/08 | Q2/08 | Q3/08 |
|                |    7 |    7 |    7 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Newsprint and  |    - |    - |    - | -110. | -110.0 |     - |  -2.4 |  -7.8 |
| Book Paper     |      |      |      |     0 |        |       |       |       |
--------------------------------------------------------------------------------
| Magazine Paper |    - |    - | -218 | -231. | -449.0 |     - |  -2.6 | -38.7 |
|                |      |      |   .0 |     0 |        |       |       |       |
--------------------------------------------------------------------------------
| Fine Paper     |    - |    - | -32. |  21.0 |  -11.6 |     - |   7.0 |  -1.5 |
|                |      |      |    6 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Consumer Board |    - |    - | -186 | -12.5 | -199.3 |     - |  -4.3 | -178. |
|                |      |      |   .8 |       |        |       |       |     2 |
--------------------------------------------------------------------------------
| Industrial     |    - |    - | -5.9 |  -1.0 |   -6.9 |     - |  -1.0 | -18.2 |
| Packaging      |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Wood Products  | -12. |    - | -106 |     - | -118.1 |     - |     - |  -8.0 |
|                |    0 |      |   .1 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Other          |    - |    - |    - | -55.0 |  -55.0 |     - |   2.0 | -27.0 |
--------------------------------------------------------------------------------
| Continuing     | -12. |    - | -549 | -388. | -949.9 |     - |  -1.3 | -279. |
| Operations     |    0 |      |   .4 |     5 |        |       |       |     4 |
--------------------------------------------------------------------------------
| Discontinued   | 44.0 | 12.8 |    - | -28.3 |   28.5 |     - |  -4.5 |     - |
| operations     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Total          | 32.0 | 12.8 | -549 | -416. | -921.4 |     - |  -5.8 | -279. |
|                |      |      |   .4 |     8 |        |       |       |     4 |
--------------------------------------------------------------------------------

Operating Profit by Segment                                                     
--------------------------------------------------------------------------------
| EUR million    | Q1/0 | Q2/0 | Q3/0 | Q4/07 |   2007 | Q1/08 | Q2/08 | Q3/08 |
|                |    7 |    7 |    7 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Newsprint and  | 61.1 | 50.2 | 52.2 | -61.6 |  101.9 |  26.4 |  25.5 |  25.7 |
| Book Paper     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Magazine Paper |  9.4 |  8.4 | -200 | -215. | -398.1 |  27.2 |  11.9 | -11.3 |
|                |      |      |   .5 |     4 |        |       |       |       |
--------------------------------------------------------------------------------
| Fine Paper     | 55.1 | 38.5 |  1.8 |  56.7 |  152.1 |  37.3 |  26.7 |  31.6 |
--------------------------------------------------------------------------------
| Consumer Board | 72.4 | 29.0 | -159 |  17.1 |  -41.3 |  42.5 |  18.7 | -140. |
|                |      |      |   .8 |       |        |       |       |     7 |
--------------------------------------------------------------------------------
| Industrial     | 29.2 | 29.6 | 18.8 |  27.4 |  105.0 |  27.6 |  19.1 |   1.8 |
| Packaging      |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Wood Products  | 42.8 | 59.3 | -69. |  -0.5 |   32.6 | -23.4 | -10.9 | -22.3 |
|                |      |      |    0 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Other*         |  4.5 |  9.2 | -14. | -116. | -116.6 | -36.5 | -32.1 | -25.1 |
|                |      |      |    2 |     1 |        |       |       |       |
--------------------------------------------------------------------------------
| Share of       | 24.1 | 20.0 | 65.4 | 231.8 |  341.3 |  23.9 |  12.4 |   1.6 |
| result of      |      |      |      |       |        |       |       |       |
| associated     |      |      |      |       |        |       |       |       |
| companies*     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Operating      | 298. | 244. | -305 | -60.6 |  176.9 | 125.0 |  71.3 | -138. |
| Profit (IFRS)  |    6 |    2 |   .3 |       |        |       |       |     7 |
--------------------------------------------------------------------------------
| Net financial  | -36. | -53. | -23. | -43.7 | -156.7 | -41.9 | -40.9 | -23.0 |
| items          |    1 |    0 |    9 |       |        |       |       |       |
--------------------------------------------------------------------------------
| Profit before  | 262. | 191. | -329 | -104. |   20.2 |  83.1 |  30.4 | -161. |
| Tax and        |    5 |    2 |   .2 |     3 |        |       |       |     7 |
| Minority       |      |      |      |       |        |       |       |       |
| Interests      |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Income tax     | -65. | -42. | 54.7 |  44.1 |   -8.8 | -16.6 |  -1.8 |  42.6 |
| expense        |    3 |    3 |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Net Profit     | 197. | 148. | -274 | -60.2 |   11.4 |  66.5 |  28.6 | -119. |
| from           |    2 |    9 |   .5 |       |        |       |       |     1 |
| Continuing     |      |      |      |       |        |       |       |       |
| Operations     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Discontinued Operations      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Net profit     | 25.3 | -5.0 | -166 | -77.5 | -223.8 |   4.7 |  -1.8 |   0.9 |
| after tax for  |      |      |   .6 |       |        |       |       |       |
| the period     |      |      |      |       |        |       |       |       |
| from           |      |      |      |       |        |       |       |       |
| discontinued   |      |      |      |       |        |       |       |       |
| operations     |      |      |      |       |        |       |       |       |
--------------------------------------------------------------------------------
| Net Profit     | 222. | 143. | -441 | -137. | -212.4 |  71.2 |  26.8 | -118. |
|                |    5 |    9 |   .1 |     7 |        |       |       |     2 |
--------------------------------------------------------------------------------

* Includes fair valuations and related items which include Total Return Swaps   
(TRS), synthetic options and CO2 emission rights, and valuations of biological  
assets mainly related to associated companies' forest assets                    

Stora Enso Shares                                                               

Closing Price                                                                   
--------------------------------------------------------------------------------
|                   |       Helsinki, EUR        |       Stockholm, SEK        |
--------------------------------------------------------------------------------
|                   |  A share   |    R share    |   A share   |    R share    |
--------------------------------------------------------------------------------
| July              |    5.75    |     5.84      |    55.00    |     55.00     |
--------------------------------------------------------------------------------
| August            |    7.06    |     6.86      |    65.25    |     65.00     |
--------------------------------------------------------------------------------
| September         |    6.99    |     6.83      |    67.75    |     67.50     |
--------------------------------------------------------------------------------

Trading volume                                                                  
--------------------------------------------------------------------------------
|                   |          Helsinki          |          Stockholm          |
--------------------------------------------------------------------------------
|                   |  A share   |    R share    |   A share   |    R share    |
--------------------------------------------------------------------------------
| July              |   81 421   |  94 102 291   |   311 556   |   8 212 345   |
--------------------------------------------------------------------------------
| August            |   67 510   |  89 574 318   |   266 742   |  13 734 313   |
--------------------------------------------------------------------------------
| September         |  275 222   |  154 139 548  |   302 236   |  21 893 422   |
--------------------------------------------------------------------------------
| Total             |  424 153   |  337 816 157  |   880 534   |  43 840 080   |
--------------------------------------------------------------------------------


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 2007.                  

The divestment of the Merchants segment has been accounted for as a discontinued
operation. A discontinued operation represents a separate major line of business
or geographical area for which the assets, liabilities and net financial results
may be distinguished physically, operationally and for financial reporting      
purposes. The net profit from discontinued operations includes the loss on      
disposal and is reported in a single line after net profit from continuing      
operations. The prior year income statements have been re-presented to          
separately disclose the results from discontinued operations, however the       
Balance Sheet and Cash Flow statements are presented as previously reported.    

Changes in Segment Reporting and Reclassification in 2007                       
Stora Enso has modified its segment reporting format for operating profit from  
the first quarter of 2008 onwards: the share of results of associated companies 
and certain fair valuations will no longer be included in business segments'    
operating profits; they are reported as separate items to increase the          
transparency of segmental reporting and facilitate comparisons between different
periods. The fair valuation items include share-based compensation, Total Return
Swaps (TRS), CO2 emission rights and IAS 41 forest asset valuations mainly      
related to associated companies. Comparative operating profits of segments for  
2007 have been reclassified. The reclassification has no effect on Group        
operating profit or Group profit before tax.                                    

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                                       
Markus Rauramo, CFO, tel. +358 2046 21121                                       
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 2008 results will be published on 5 February 2009.       

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                                                                  




p.p. 	Jukka Marttila			Pia Aaltonen-Forsell

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