Holmen wins appeal against tax authority

Holmen wins appeal against tax authority The County Administrative Court has decided in favour of the appeal lodged by Holmen's subsidiary MoDo Capital against the 1997 tax assessment, thereby rescinding the tax authority's decision of December 2002. The tax authority decided in 2002 to raise the company's tax assessment by a total amount of MSEK 538. Holmen appealed against the decision in 2003 and the County Administrative Court has decided in favour of the appeal. Holmen has not made any provision in its accounts for tax costs related to the said decision. The County Administrative Court's verdict will therefore have no effect on the result. For further information, please contact CFO Anders Almgren, tel. +46 8 666 21 00. Holmen is a forest products industry group with the capacity to produce 2.4 million tonnes of paper and paperboard per year. The EU countries, which account for some 90 per cent of the Group's turnover, are by far the largest market. Holmen Paper produces paper for daily newspapers, magazines, directories and advertising matter 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's annual wood consumption is some 4.5 million cubic metres. Holmen Skog's earnings are largely generated by the sale of wood harvested in company forests. Holmen Kraft produces in a normal year some 1,100 GWh of electric power at wholly and partly owned hydroelectric power stations in Sweden. Holmen's annual power consumption is some 4,200 GWh. Holmen Kraft's earnings are largely generated from the production of electric power by wholly and partly owned hydroelectric power assets. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/10/12/20041012BIT21200/wkr0001.pdf Holmen wins appeal against tax authority http://www.waymaker.net/bitonline/2004/10/12/20041012BIT21200/wkr0003.doc