M-real's plans for paper production at Hallein and Gohrsmühle advance

M-real Corporation Stock Exchange Release 14 January 2009

M-real, part of Metsäliitto Group, starts statutory negotiations at
Hallein mill, Austria, targeting to discontinue the paper production
at the end of April 2009. At Gohrsmühle mill, Germany, the standard
fine paper production will be discontinued during April and its
effects will be reviewed. At Gohrsmühle, it has already been decided
that the production of speciality papers as well as uncoated fine
paper reels and folio sheets will be expanded.

The European paper business has over the past years been suffering
from overcapacity and the both mills have been making losses for a
long period of time. Since September 2007, M-real has examined
possibilities to solve the problems related to Hallein and Gohrsmüle.

During the recent months, M-real has been approached by local parties
in regard to purchasing Hallein mill. These contacts have included
proposals to continue coated fine paper production at Hallein, and at
a later time, to change production to speciality papers, folding
boxboard and liquid packaging board. However, from M-real's viewpoint
these proposals have not included any viable business development
opportunities or financing plans.

The combined standard coated fine paper production capacity of
Hallein and Gohrsmühle is about 0.6 million tonnes per annum. The
statutory negotiations related to the discontinuation of paper
production at Hallein concern some 480 people."The strategic review related to the Hallein pulp mill continues. We
aim to, in good cooperation with local parties, find a solution that
secures jobs at the Hallein pulp mill," concludes Mikko Helander, CEO
of M-real.

M-REAL CORPORATION

Further information:
Seppo Parvi, CFO, tel. +358 10 465 4321
Juha Laine, Vice President, IR and Communications, tel. +358 10 465
4335