Stora Enso successfully completes 2007 E

STORA ENSO OYJ Stock Exchange Release 22 June 2004 at 14.00

Stora Enso successfully completes 2007 Eurobond Exchange Offer

The offer to exchange Stora Enso EUR 850m 2007 bonds for a new 
benchmark bond with a 10-year maturity that was launched on 4 
June 2004 has been successfully priced and completed. The 
transaction was well received by the market and investors; the 
aim of creating a new benchmark 10-year bond by exchanging 
existing bonds and minimising the amount of additional bonds 
issued was achieved. The transaction also extends the average 
maturity of the Company’s debt portfolio by one year, which was 
an important motive for the transaction.

Creating the new benchmark bond alongside the existing ones is 
in line with Stora Enso’s funding strategy and will ensure that 
the Company’s access to liquidity at competitive pricing remains 
strong. The participation in the transaction and the pricing 
achieved reflect the status of Stora Enso as a premium borrower 
in the bond market.

EUR 475 375 000 of Existing Notes have been exchanged, 
corresponding to 55.9 per cent of the total outstanding amount 
of Existing Notes. By application of the Exchange Ratio of 
1:1.0888, EUR 517 555 000 of New Notes will be issued on 23 June 
2004. The high level of interest in the transaction meant that 
no new issuance was needed to achieve the benchmark size of the 
new Bond

The Dealer Managers for this transaction were J.P. Morgan 
Securities Ltd. and Merrill Lynch International. Co-Dealer 
Managers were Barclays Capital, BNP Paribas, ING Financial 
Markets and SEB Merchant Banking. The Exchange Agent was 
JPMorgan Chase Bank.


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

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

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

For further information, please contact:
Hannu Kasurinen, Senior Vice President, Group Treasurer, tel. 
+44 7789 940 976 
Peter Nordquist, Vice President Head of Funding, tel. +44 20 
7016 3266


Jyrki Kurkinen    Ulla Paajanen-Sainio