INTERIM REPORT JANUARY-JUNE 2006

Quarter January - June Full year MSEK 2-06 1-06 2-05 2006 2005 2005 Net turnover 4 661 4 579 4 201 9 240 8 002 16 319 Operating profit 485 619 449 1 104 813 1 973 Profit after tax 303 406 271 709 488 1 256 Earnings per share, SEK 3.6 4.8 3.2 8.4 5.8 14.8 Return on equity, % 7.5 10.0 7.0 8.8 6.3 8.0 - The Group’s net turnover for January-June amounted to MSEK 9 240 (January-June 2005: 8 002). - Profit after tax was MSEK 709 (488). - Earnings per share amounted to SEK 8.4 (5.8). Return on equity was 8.8% (6.3). - The operating profit was MSEK 1 104 (813). The improvement is due to higher deliveries of paperboard and newsprint and higher prices for newsprint. The operating result for the second quarter was MSEK 134 lower than in the first quarter, mainly as a result of lower production and increased costs in connection with maintenance stops and lower profits at Holmen Kraft and Holmen Skog. - The market situation for newsprint remained strong in Europe during the second quarter. Holmen Paper’s deliveries were 16% higher than in the first half of 2005, mainly as a result of the new paper machine in Madrid. On average, prices for Holmen Paper’s products were some 5% higher in relation to the previous year. The market situation for virgin fibre board in Europe remained good in the second quarter. Iggesund Paperboard’s deliveries were 9% higher than in the first half of 2005. Prices were stable. For further information please contact: Magnus Hall, President and CEO, tel +46 8 666 21 33 Anders Almgren, CFO, tel +46 8 666 21 16 Christer Lewell, Public Relations Director, tel +46 8 666 21 15