Holmen signs electricity supply and energy efficiency agreements with Vattenfall

Holmen has reached long-term electricity supply and energy efficiency agreements with Vattenfall. The agreement between the two companies means that Holmen will purchase some 1.5 TWh of electricity per year - almost half of the purchased electricity that Holmen needs - for a ten-year period beginning in 2006. The two companies will also improve energy and process efficiency at all of Holmen’s mills. Around one-third of the electricity Holmen requires comes from its own production at wholly or part-owned hydroelectric power stations and back pressure production at its mills. In 2004, the Group’s total electricity consumption in Sweden amounted to some 4.3 TWh. “This is an important agreement for Holmen, which is active in a world with great uncertainty regarding the supply of electricity in the future,” comments Magnus Hall, Holmen’s President and CEO, “and we are pleased to be able to extend our close, long-standing relationship with Vattenfall.” In connection with the supply agreement Holmen and Vattenfall have also signed an agreement on joint measures to improve energy and process efficiency at all of Holmen’s mills with the object of strengthening Holmen’s competitive position by identifying and implementing new measures to save energy. “The long-term supply and efficient use of electricity are important factors for our customers in basic industries. We are therefore very pleased that Holmen has displayed continued confidence in our relationship,” says Hans von Uthmann, head of Vattenfall Nordic. For further information, please contact: - Magnus Hall, President & CEO, Holmen, tel +46 8 666 21 00 - Åke Eklöf, President, Holmen Kraft tel +46 660 754 00 - Hans von Uthmann, Executive VP, Vattenfall AB and head of Vattenfall Nordic, tel +46 8 739 50 74 - Erik von Hofsten, press relations manager, Vattenfall Nordic, tel +46 70 559 54 84