Adjustment completed of the conditions for the convertible debenture loan and warrants

Adjustment completed of the conditions for the convertible debenture loan and warrants In 1998, Holmen issued a convertible debenture loan and warrants to employees at market prices. The convertibles were converted into Holmen Series "B" shares and the warrant-holders subscribed to Series "B" shares during the first quarter of 2004. In accordance with the respective agreements, the conversion and subscription conditions were adjusted on the basis of the average listed share price during the period 31 March to 6 May 2004 in order to compensate the holders for the extra dividend paid out in 2004. The adjustment means that the convertible debenture loan is converted to shares at the rate SEK 99.10 and the warrants to 1.77 shares per warrant at the rate SEK 99.10. In total slightly less than 4.8 million new shares of Series "B" have been issued as a consequence of the conversion and subscription. The definitive registration of shares will be done by PRV (the Swedish Patent and Registration Office) during May. In relation to that VPC (the Swedish Central Securities Depository & Clearing Organization) will register the new number of shares at each respective holder. Holmen is a forest products industry group with the capacity to produce 2.4 million tonnes of paper and paperboard per year. Europe, which accounts for some 90 per cent of the Group's turnover, is by far the largest market. Holmen Paper produces paper for daily newspapers, magazines, directories and advertising products at three Swedish mills and one Spanish mill. Iggesund Paperboard produces paperboard for packaging and graphic purposes at two Swedish mills and one English mill. Iggesund Timber produces sawn timber at one Swedish sawmill. Holmen Skog manages the Group's one million hectares of forests and the annual volume harvested from company forests is some 2.5 million cubic metres. Holmen Kraft produces in a normal year some 1,100 GWh of electricity at wholly and partly owned hydroelectric power stations in Sweden. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/05/07/20040507BIT21050/wkr0001.pdf Adjustment completed of the conditions for the convertible debenture loan and warrants http://www.waymaker.net/bitonline/2004/05/07/20040507BIT21050/wkr0003.doc