M-REAL TO SELL THE MAJORITY OF METSÄ TIS

M-real Corporation Stock Exchange Bulletin 19.11.2003 at 11.00

M-REAL TO SELL THE MAJORITY OF METSÄ TISSUE

M-real Corporation is going to sell 66 per cent of the businesses of
its fully owned Metsä Tissue Corporation to Metsäliitto Osuuskunta. A
letter of intent on the divestment was signed today. It is estimated
that the final transaction will be concluded by the turn of the year.

The sale price is EUR 294 million, i.e. approximately EUR 14.7 per
share, making the unencumbered value of Metsä Tissue around EUR 570
million. The proceeds from the sale will be used for repayment of
debts. The capital gain after taxes will be approximately EUR 120
millions.

As a consequence of the sale, the equity ratio of M-real will
increase from 33.1 per cent to 36.6 per cent, and gearing will
decrease from 132 per cent to 113 per cent.  The impact of the
transaction on the 2004 earnings per share is EUR –0.01.

According to Jouko M. Jaakkola, President and CEO of M-real, the
divestment of Metsä Tissue is based on corporate strategy. In line
with this strategy, M-real will focus on its core businesses:
Cartons, Graphics, Offices, Specialities and MAP merchants. "We are
currently undergoing negotiations with several interested parties on
divesting the remaining share of Metsä Tissue. We are prepared to
make prompt decisions, should mutual understanding be reached," says
Jaakkola.

Metsä Tissue customers include consumers and large customers of
tissue paper products and baking and cooking papers. The company’s
main market area is Europe, where it is the fourth biggest supplier
of tissue paper and the market leader of baking and cooking papers.
In the Nordic countries Metsä Tissue is the market leader in tissue
papers.

M-REAL CORPORATION

Jouko M. Jaakkola
President and CEO

For additional information please contact Jouko M. Jaakkola,
President and CEO, tel. +358 10 469 4118