ENVIRONMENTAL PERMIT FOR REBUILDING OF UTANSJÖ MILL

The Rottneros Group has received a permit by the Environmental Rights Court in Östersund to build a production plant for the pulp quality CTMP (chemo-thermo-mechanical pulp) at the Utansjö Mill. This is part of Rottneros’ aim to strengthen Utansjö´s market position and profitability. The planned investment will cost SEK 250-300 million. The new plant is planned to start production in early 2005.

The project comes as a result of the cost reduction and profitability improvement programme for Utansjö Mill adopted in December 2002. If the company decides to build the planned facility in accordance with the permit the production of magnefite pulp will cease. The permit given by the Environmental Rights Court does not comprise a final permit to start production of the new CTMP line at the mill. The court intends to deal with this complementary permit during autumn 2004.

Upplands Väsby 30.03.2004

Further information: President and CEO Lars Blecko +46 (0)8 590 010 00 or +46 (0)70 64 14 910

Rottneros is one of the world's leading independent manufacturers of market pulp. The Group consists of the parent company, Rottneros AB, which is listed on the Stockholm Stock Exchange, along with its subsidiaries of Rottneros Rockhammar AB, Utansjö Bruk AB and Vallviks Bruk AB in Sweden as well as Rottneros Miranda, S.A. in Spain, with activities involving production and sales of market pulp, Rockhammar Timber AB, which produces and sells sawn timber, plus the raw materials purchasing company of Rottneros Baltic SIA in Latvia. The Group has a total of 857 employees and a turnover of approximately SEK 2.4 billion.