QUARTERLY REPORT JANUARY - MARCH 2006

* Net turnover, SEK m Jan - Mar 700 (585)

* Income after net financial items, SEK m Jan - Mar -43 (-24)

* Earnings per share after net financial items, SEK Jan - Mar -0,24 (-0,13)

* Profit/loss after tax, SEK m Jan - Mar -33 (-15)

* Earnings per share after tax, SEK Jan - Mar -0,18 (-0,08)

* Cash flow per share, SEK Jan - Mar -0,31 (-0,22)

* Shareholders' equity per share, SEK 8,46 8,45 (31.12.2005)

* Equity/assets ratio 57% (58%) (31.12.2005)

* First quarter 2006 result: a loss after net financial items of SEK -43 (-24) million. Provisions for restructuring according the cost-cutting programme announced in February 2006 affected the result in the amount of SEK -27 million. The cost-cutting programme is expected to reduce costs in 2006 by around SEK 30 million.

* As a result of the high electricity prices, it was necessary to re-evaluate the cost-cutting programme’s scope and structure at the mechanical pulp mills.

* In March Rottneros launched Rottneros Packaging, a new business area that will produce packaging for food. The new business area is expected to account for 15 per cent of the Group’s turnover within a five-year period.

* At the end of the first quarter the new CTMP factory at Utansjö has reached the planned production level.

* The company is expecting a continued increase in pulp prices in US dollars in the second quarter and good market prospects for the rest of the year.

* Since market development is hard to predict, the company will not provide a forecast for the full year 2006.

(For complete report se attached file)