KLIPPAN AB

The Board of KLIPPAN AB has today reached a decision about a new share issue, supported by the authorization of the annual general meeting on 9 May 2005. Please see the press release issued today for the terms of the new share issue. The Board is working actively on solving the current liquidity situation. The positive development of the order inflow during April has continued during May. The improved capacity utilization has thus resulted in no stoppage days during April and May. Negotiations in accordance with the law concerning self determination at work aimed at closing down paper manufacturing at Mölndal Mill continue. KLIPPAN AB For further information, please contact Thomas Billing, MD, on telephone +44 (0)435-291 93 or mobile +44 (0)705-85 08 98.