INTERIM REPORT JANUARY-MARCH 2006

Quarter Full year MSEK 1-06 4-05 1-05 2005 Net turnover 4 579 4 235 3 801 16 319 Operating profit 619 570 364 1 973 Profit after tax 406 397 217 1 256 Earnings per share, SEK 4.8 4.7 2.6 14.8 Return on equity, % 10.0 10.0 5.5 8.0 • The Group’s net turnover for January-March amounted to MSEK 4 579 (January-March 2005: 3 801). • Profit after tax was MSEK 406 (217). • Earnings per share amounted to SEK 4.8 (2.6). Return on equity was 10.0 % (5.5). • The operating profit amounted to MSEK 619 (364). The improvement is due to higher volumes and higher prices for newsprint and magazine paper. The result improved by MSEK 49 in relation to the fourth quarter of 2005. The fourth quarter result included income from the sale of power grid assets and forest properties amounting in total to MSEK 97. • Market conditions for newsprint remained strong in Europe during the first quarter. Holmen Paper’s deliveries were 20 % higher than in the first quarter 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. The market situation for virgin fibre board in Europe remained good in the first quarter. Iggesund Paperboard’s deliveries were 15 % higher than in the first quarter 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