M-REAL CORPORATION?S FOURTH QUARTER RESULT WEAKER THAN EXPECTED

M-real Corporation Stock Exchange Bulletin 11.1.2006 at 3.15 p.m.

M-REAL CORPORATION’S FOURTH QUARTER RESULT WEAKER THAN EXPECTED
MAINLY DUE TO EUR 40 MILLION NON-RECURRING EXPENSES

Out of the total of EUR 40 million, EUR 25 million is attributable to
the cost savings and efficiency improvement programme in the Pont
Sainte Maxence mill in France. Headcount will be further reduced by
approximately 60 persons causing redundancy and other non-recurring
expenses amounting to EUR 4 million. Furthermore, the book value of
the mill’s intangible and tangible assets excluding land areas,
amounting to EUR 21 million, will be written down in their entirety.

The remaining non-recurring items are mainly attributable to the
already decided cost savings and efficiency improvement programmes
carried out in M-real’s other units in 2006.

M-real’s fourth quarter result excluding non-recurring items is
somewhat weaker than the third quarter result. The full year 2005
result before taxes including non-recurring items will be clearly
negative.

The cost savings and efficiency improvement programme announced in
2004 is progressing in line with targets. According to the current
estimate, the non-recurring expenses caused by the programme will
amount to a total of EUR 20 - 30 million in 2006.

M-REAL CORPORATION


Corporate Communications

For additional information, contact Juhani Pöhö, Executive Vice
President and CFO, tel. +358 10 469 5283 and Hannu Anttila, President
and CEO, from 4.30 p.m. onwards, tel. +358 10 469 4343