INTERIM REPORT JANUARY – JUNE 2005

* Net turnover, SEK m Jan - Jun 1 181 (1 238)

Apr - Jun 596 (623)

* Income after net financial items, SEK m Jan - Jun -17 (51)

Apr - Jun 7 (75)

* Earnings per share after net financial items, SEK Jan - Jun -0,10 (0,28)

Apr - Jun 0,04 (0,42)

* Profit/loss after tax, SEK m Jan - Jun -14 (32)

Apr - Jun 1 (53)

* Earnings per share after tax, SEK Jan - Jun -0,07 (0,18)

Apr - Jun 0,01 (0,30)

* Cash flow per share, SEK Jan - Jun -1,25 (-0,26)

Apr - Jun -0,98 (0,17)

* Shareholders' equity per share, SEK 8,72

9,28 (31.12.04)

* Equity/assets ratio 57 %

65 % (31.12.04)

* The market for pulp for the leading quality NBSK has been weaker than anticipated during the second quarter. The decline for NBSK prices in USD is supposed to have leveled away and is expected to increase during the rest of this year.

* The closing of the saw mill and magnefite production will improve the earnings by 100 MSEK yearly effective the third quarter 2005.

* Earnings for the second quarter 2005 after financial items have improved and amounted to MSEK 7 compared to MSEK -24 during the first quarter.

* The company expects an unchanged weak but positive result for the whole year 2005.

(For complete interim report see attached file)