STORAs organizational structure adapted

STORA's ORGANIZATIONAL STRUCTURE ADAPTED TO MATCH OPERATIONAL FOCUS In recent years, STORA has developed into a homogeneous forest industries company, within which its core operations today focus on Graphic Papers and Board. Currently an extensive program of investment is being conducted within both of these areas, extending to a new board machine in Skoghall, Sweden, and a new paper machine for the production of uncoated magazine paper at the Stora Forest Industries unit in Canada. In order to better reflect the Group's current operating focus, a number of adjustments are being made to STORA's organizational structure, all of which become effective on October 1, 1996. Stora North America Following the start-up of the new paper machine at the Stora Forest Industries (SFI) plant in Canada, STORA's production capacity in North America will total 530,000 tons. In combination with the sale of products manufactured at the Group's plants in Europe, the North American market will, long term, represent an annual volume of around 650,000 tons. To organizationally coordinate marketing and production, STORA's North American activities are being grouped in a newly established division, Stora North America. The division will be headed by Leif Smedman, currently responsible for the Carton Board division within Stora Billerud. The new division will include the SFI production unit, headed by John Hartery, and the STORA sales company responsible for the North American market. Stora Merchant STORA's paper wholesaling operations are contained within the Merchant division, which is currently part of Stora Papyrus. Wholesale operations differ substantially from the production of fine papers. In order to achieve an increased focus, and to clarify the roles to be played by the individual areas, wholesale operations will be separated from Stora Papyrus and will form an independent division, Stora Merchant. The current head of wholesale operations, Sven Rosman, will remain as head of the division. Coordination of board production Currently, STORA's board production consists of the Skoghall and Carton Board divisions, both of which are part of Stora Billerud. Following the start up of the new board machine under construction in Skoghall, there will be an increased need for coordination of production, marketing and development activities. To facilitate the achievement of this, and to increase the focus on the board area, the Skoghall and Carton Board divisions will be coordinated under joint management and with a shared marketing organization. Operations within the Paper division (Gruvön mill) will not be affected by these changes. Product-related names for operating units To create an identity which relates more closely with the products that are manufactured and marketed, the following changes are being implemented:

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