Organization as of 26 October 2000

Oy Metsä-Botnia Ab further develops its business concept

METSÄ-BOTNIA'S BUSINESS ORGANIZED ON A PROCESS BASIS

In line with its strategy, Oy Metsä-Botnia Ab is developing its management
model, the aim being to change from a production-oriented business concept to a
customer-oriented concept. Another objective is to make the company's
management practices more effective, make better use of management resources
and expertise, and step up collaboration between units. 

Metsä-Botnia has accordingly decided to adopt a process-based management and
business concept, in which business is steered in accordance with the company's
core processes. Metsä-Botnia's core processes are Business Management,
Deliveries and Customer Service. 

With the exception of core process management and certain other key persons,
the company's personnel will be organized into resources, which are Wood
Procurement, Production, Research and Development, Botnia Pulps and
Administration. Development of the business concept will continue with a more
precise division of duties between core processes and resource organizations
and allocation of personnel to the different organizations. 

Directors will be appointed for the core processes and company-level resources,
and these persons will form the company's Management Group. The core process
directors will manage business operations in their own areas of responsibility
assisted by experts from resources. The resource directors will be responsible
for developing activities and expertise in their own areas and for ensuring the
cost-effectiveness of production and development work. 

In developing the company's business concept the emphasis will be on supporting
customers' business activities, acquiring greater in-depth fibre expertise,
improving customer service and internal efficiency, and further development of
the skills of key persons. 

ORGANIZATION AS OF 26 OCTOBER 2000

Metsä-Botnia's Business Management is the responsibility of the company's
Managing Director Erkki Varis. His area of responsibility covers management of
the company's overall business activities in accordance with the strategy
approved by the company's owners. 

Director responsible for the company's strategic investments (including the
Joutseno investment) is Timo Piilonen. 

Kosti Kukkonen has been appointed director for Metsä-Botnia's Deliveries, which
is responsible for wood raw material procurement, management of pulp production
and deliveries, and the efficiency of logistics. 

Director in charge of Customer Service is Timo Merikallio. Customer Service is
responsible for developing products, customer collaboration and knowledge of
customers. Timo Merikallio was previously in charge of production and
development at Metsä-Rauma. 

The company-level resource organizations are as follows:

Director responsible for Botnia Pulps is Jyrki Yrjö-Koskinen. Botnia Pulps is
responsible for marketing, sales planning and sales, promoting knowledge of
customers, and development of the international pulp business. 

Administration is responsible for producing administrative services (financial
functions, financing and risk management, information management and controller
functions). Juha Pesonen remains in charge of controller functions and Vesa
Junes in charge of financing and risk management. 

Metsä-Botnia's Wood Procurement is handled by Metsäliitto Osuuskunta. Within
Metsäliitto, Metsä-Botnia's Wood Procurement is the responsibility of Juha
Levonen, Procurement Director. Wood Procurement covers cost-effective
procurement, harvesting and transport of wood raw material, together with
management of both quantity and quality. 

Director in charge of Metsä-Botnia's Production is Ilkka Hämälä. The areas of
responsibility within production are cost-effective pulp production,
development of production processes, materials purchasing, environmental
protection, energy-related issues, local mill administration and human
resources. The heads of the profit centres report to Ilkka Hämälä. 

Director for Metsä-Botnia's Research and Development (R&D) resource is Kosti
Kukkonen. Raili Koponen has been appointed administrative head of
Metsä-Botnia's R&D. The R&D function is responsible for conducting research
projects with customers, basic research, and promotion of fibre expertise.