M-REAL CORPORATION ESTIMATES THE SECOND QUARTER RESULT EXCLUDING NON-

M-real Corporation Stock Exchange Bulletin 30.6.2006 at 13.46 p.m.

M-real Corporation estimates that the company’s second quarter result
excluding non-recurring items will be clearly weaker than expected
due to the increased production costs and seasonally weaker demand.

Earlier today M-real has announced the sale of Pont Saint Maxcence
mill, as a result of which a sales loss about EUR 35 will be booked
in the result of the second quarter. The company also announced the
efficiency programme at the French Alizay paper mill. The non-
recurring cost of EUR 13 million arising from this weakens the result
of the second quarter as well.

M-real has told earlier that the second quarter result will be also
weakened by the investment and maintenance shutdowns at Simpele and
Alizay, Finnish paper workers’ strike on May 15 -17 2006 and non-
recurring costs related to the German and Austrian mills.

The result of M-real excluding non-recurring items above and taxes
will be clearly negative and weaker than expected in the second
quarter this year.

“During the second quarter the development of our profitability has
still been unsatisfactory. We have announced today clear and strong
measurements to change the direction. We believe that these will have
a positive effect in the development of M-real’s profitability”, says
Hannu Anttila, President and CEO.

M-real Corporation

Corporate Communications


For further information please contact Hannu Anttila, President and
CEO, tel. +358 10 469 4343 or +358 50 2398