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M-real finalises sale of forest assets (31st January, 2005)

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M-real Corporation Stock Exchange Bulletin 31.1.2005 at 2.25 p.m.


In accordance with the Letter of Intent signed at the end of last year, M-real
has sold its forestland to Forestia Holding Oy. The total transaction value is
EUR 172 million of which M-real's share is EUR 163 million. The transaction has
no material effect on M-real's result. 
 
The owners of Forestia Holding Oy are Metsäliitto Cooperative with a share of
49.9%, Suomi Mutual Life Assurance Company with a share of 39.7% and the
Central Union of Agricultural producers and Forest owners with a share of 10.4
%. 
 
EUR 24 million portion of the total sales price has been paid by M-real's
subscribtion of a subordinated debenture issued by Forestia Holding Oy. M-real
intends to sell the debenture in the secondary market. 
 
Under the terms of the transaction, Forestia Holding Oy has acquired the forest
land of Suomi Mutual Life Assurance Company for a consideration of about EUR 21
million. 
 
The deal is part of M-real's action plan to divest its non-core assets.


M-REAL CORPORATION


Corporate Communications

For additional information, contact Chief Financial Officer Juhani Pöhö, tel.
+358 10 469 5283, mobile +358 50 598 7607 


M-real Corporation is a European paper and paperboard company with nearly
16,500 employees. M-real provides fibre-based solutions for consumer packaging,
communications and advertising end-uses. Through its worldwide sales network,
M-real serves its customers consisting mostly of publishers, printers, paper
merchants, offices and well-known consumer product companies. The turnover of
M-real in 2003 amounted to 6 billion euros. The company is headquartered in
Finland, and it is listed on the Helsinki Stock Exchange. 

www.m-real.com

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