INTERIM REPORT JANUARY – JUNE 2006, QUARTERLY REPORT APRIL – JUNE 2006

· Net turnover, SEK m Jan - June 1,315 (1,181) Apr - June 615 (596)

· Income after net financial items, SEK m Jan - June -45 (-17) Apr - June -2 (7)

· Earnings per share after net financial items, SEK Jan - June -0.25 (-0.10) Apr - June -0.01 (0.04)

· Profit/loss after tax, SEK m Jan - June -31 (-14) Apr - June 2 (1)

· Earnings per share after tax, SEK Jan - June -0.18 (-0.07) Apr - June 0.00 (0.01)

· Cash flow per share, SEK Jan - June -0.20 (-1.25) Apr - June 0.11 (-0.98)

· Shareholders' equity per share, SEK 8.22 (8.45) (31 Dec.2005)

· Equity/assets ratio 56 % (58 %) (31 Dec. 2005)

· 2006 second quarter result: a loss after net financial items of SEK -2 (7) million.

· 2006 half-year result: a loss after net financial items of SEK -45 (-17) million. Provisions for restructuring for part of the cost-cutting programme announced in February 2006 negatively affected the result in the amount of SEK -27 million. The cost-cutting programme is expected to result in cost savings in 2006 of around SEK 30 million.

· Due to the dramatic increase in electricity prices, it was necessary to re-evaluate the cost-cutting programme’s scope and structure at the mechanical pulp mills in Rottneros and Utansjö.

· The company is expecting the pulp market to remain strong for the rest of the year and the upward pulp price trend is therefore expected to continue.

· As previously announced, the company will not be providing a forecast for the full year 2006 due to the fact that electricity price trends and US dollar rates are difficult to predict.

(For complete report, see the attached file)