Pre-feasibility study for construction of a greenfield pulp mill in Vologda Oblast, Russia, to begin

Representatives of the Vologda Oblast Government and Oy Metsä-Botnia Ab have
agreed to commence a pre-feasibility study for a pulp mill located in Vologda
Oblast. Vologda Oblast is located some 400 kilometres north of Moscow. 

The pre-feasibility study will continue the implementation of Botnia's strategy
in Russia of the developing activities in the forest sector in the European
part of Russia. Botnia has already done basic work concerning the possibilities
of developing wood procurement and industrial activities in North West Russia. 

The parties discussed new steps for development towards a pulp mill investment
at their meeting in Finland in October 2006. A new joint strategic committee
was established for the clarification of basic elements and pre-feasibility
study of a pulp mill in Vologda Oblast. 

It was also decided to continue and further enhance cooperation in developing
sustainable forestry and wood procurement in Vologda. This work will include
the enhancement of forest management, forest road network development and wood
harvesting operations. 

Botnia is also aiming at developing cooperation with other harvesting companies
in Vologda. Cooperation is in a key position in developing practical wood
procurement to meet the requirements of industrial scale wood procurement.