M-REAL?S COMPETITOR UPM SEEKS CONTROL OF M-REAL?S STRATEGIC PULP

M-real Corporation’s Stock Exchange Realease of 9.11.2006 at 13.10
p.m.

M-REAL’S COMPETITOR UPM SEEKS CONTROL OF M-REAL’S STRATEGIC PULP
SUPPLIER

The Board of Directors of M-real Corporation and its parent company
Metsäliitto Group have received a written offer from UPM-Kymmene to
buy a part of M-real Corporation’s Metsä-Botnia shares. UPM has
announced to offer EUR 500 million for 15% of M-real Corporation’s
Metsä-Botnia shares. The offer includes a control premium which in
practice would mean the transfer of control to UPM in Metsäliitto
Group’s subsidiary Metsä-Botnia.

UPM is M-real’s competitor both in magazine and fine papers and Metsä-
Botnia, for its part, is M-real’s strategic raw material supplier.

”M-real Corporation’s Board of Directors has to carefully consider
how the transfer of control of the strategically important raw
material supplier to a competitor would affect M-real’s business
operations and possibly the value of its remaining Metsä-Botnia
shares. In addition, we have to take into consideration that we have
announced on 18 October 2006 an extensive restructuring programme,
which will proceed according to plans. Our financial status is firm,”
points out Mikko Helander, CEO, M-real Corporation.

Both M-real and Metsä-Botnia are Metsäliitto Group’s subsidiaries. M-
real has announced in its stock exchange release of 18 October about
a possible sale of a minimum of 8% stake of its Metsä-Botnia shares
to the parent company Metsäliitto. UPM is Metsä-Botnia’s minority
shareholder.

UPM’s offer will be discussed at M-real's Board of Directors in due
course.



M-REAL OYJ