YEAR-END RELEASE 2004

QUARTERLY REPORT OCTOBER – DECEMBER 2004

* Turnover Jan. – Dec. SEK 2,356 m (2,380)

Oct. – Dec. SEK 535 m (571)

* Income after net financial items Jan. – Dec. SEK -108 m (115)

Oct. – Dec SEK -53 m (61)

* Earnings per share after net financial items Jan. – Dec. SEK -0.60 (0.64)

Oct. – Dec. SEK -0.29 (0.35)

* Profit after tax Jan. – Dec. SEK -81 m (85)

Oct. – Dec. SEK -40 m (48)

* Earnings per share after tax Jan. – Dec. SEK -0.45 (0.47)

Oct. – Dec. SEK -0.22 (0.27)

* Cash flow per share Jan. – Dec. SEK -0.41 (0.00)

Oct. – Dec. SEK 0.21 (0.12)

* Shareholders’ equity per share SEK 8.73 (31.12.03: 9.50)

* Equity/assets ratio 66% (31.12.03: 73%)

* In the fourth quarter the pulp market strengthened from its lowest price level for many years calculated in SEK or euro. Income after net financial items in the fourth quarter amounted to SEK -53 million (61).

* Earnings for full-year 2004 after financial items but before non-recurring items amounted to SEK 8 million. The result after non-recurring items of SEK 116 million was a loss of SEK 108 million.

* Despite its great sensitivity to economic fluctuations, every year for the past five years the company has reported a positive result for the full year in terms of income after financial items but excluding non-recurring items. The average profit margin over the past five-year cycle (excluding non-recurring items) was 9.3%.

* The Board proposes a dividend of SEK 0.20 per share (SEK 0.30 per share) and an extension of the buy-back programme.

* The effects of the introduction of the new international accounting principles (IFRS) are reported in this year-end release as recommended by Stockholmsbörsen, the Stockholm stock exchange (Annex 1).

* In 2005 the pulp market is assessed as strong. The company expects to report a positive result after net financial items for 2005.

(For complete YEAR-END RELEASE see attached file)