QUARTERLY REPORT JANUARY - MARCH 2005

* Turnover Jan. - Mar. SEK 585 m (615)

* Income after net financial items Jan. - Mar. SEK -24 m (-24)

* Earnings per share after net financial items Jan. - Mar. SEK -0.13 (-0.14)

* Profit/loss after tax Jan. - Mar. SEK -15 m (-21)

* Earnings per share after tax Jan. - Mar. SEK -0.8 (-0.12)

* Cash flow per share Jan. - Mar. SEK -0.22 (-0.47)

* Shareholders’ equity per share SEK 9.14 (31.12.04: 9.28)

* Equity/assets ratio 64% (31.12.04: 65%)

* The pulp market strengthened in the first quarter 2005 but developed weaker than expected.

* Adjustment of inventory values and market related early shut down of the magnefite production line at Utansjö mill had a negative impact of 35 MSEK on the result in the first quarter.

* The company expects a slightly positive result after financial items for 2005.

(For complete report see attached file)