INTERIM REPORT JANUARY – SEPTEMBER 2006

*Net turnover, SEK m Jan - Sept 1 977 (1 822)

Jul - Sept 662 (641)

*Income after net financial items, SEK m Jan - Sept -44 (-82)

Jul - Sept 1 -65

*Earnings per share after net financial items, SEK Jan - Sept -0,25 (-0,46)

financial items, SEK Jul - Sept 0,00 (-0,36)

*Profit/loss after tax, SEK m Jan - Sept -32 (-59)

Jul - Sept -1 (-45)

*Earnings per share after tax, SEK Jan - Sept -0,18 (-0,33)

Jul - Sept 0,00 (-0,25)

*Cash flow per share, SEK Jan - Sept -0,29 (-2,03)

Jul - Sept -0,09 (-0,78)

*Shareholders' equity per share, SEK 8,06 (8,45) (31.12.2005)

*Equity/assets ratio 56 % (58 %) (31.12.2005)

· The income after net financial items for the third quarter of 2006 was SEK 1 (-65) million. The result for the quarter was affected by costs of around SEK 30 million relating to planned maintenance shutdowns at Vallvik and Rottneros.

· The loss for the first nine months of 2006 after net financial items was SEK -44 ( 82) million. Provisions for restructuring according to the cost-cutting programme announced in February 2006 affected the result in the amount of SEK -27 million. The continuing cost-cutting programme reduced costs during the reporting period by around SEK 27 million and is expected to result in savings this year of around SEK 37 million.

· At the end of August Rottneros announced that, due to high electricity prices, it would begin negotiations on the closure of Utansjö Mill with a view to moving the plant abroad.

· The company is expecting a continued strong pulp market and a positive price trend.

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

(For complete report see attached file)