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Stora Enso's associated company Veracel's permits questioned

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STORA ENSO OYJ STOCK EXCHANGE RELEASE 11 July 2008 at 15.30 GMT                 


Stora Enso's associated company Veracel in Brazil has received a decision issued
by a federal judge in Bahia originating from a claim of 1993 in which Veracel   
(at that time Veracruz Florestal Ltda.) was accused of having deforested a minor
area (64 hectares) of native forest in 1993. 
                                   
In the decision, the judge claims i.a. that Veracel's permits issued by the     
State of Bahia are not valid and that no environmental impact assessment study  
was undertaken for the licensing. According to the decision, 47 000 hectares of 
Veracel's current plantations should be cut down and reforested within one year 
with native trees. The decision also imposes a possible fine of BRL 20 million  
(EUR 8 million) on Veracel. Veracel has not recorded any provision for either   
the reforestation or the possible fine.   
                                      
Veracel operates in full compliance with all Brazilian laws. An extensive       
environmental impact assessment study was undertaken in 1994-1995 as part of the
legal permit requirements. Veracel has obtained all the necessary environmental 
and operating licences for its industrial and forestry activities from the      
Brazilian environmental authorities.     
                                       
Veracel vigorously disputes the findings of the court and is analysing the      
content of the decision, Veracel's position and how to respond appropriately to 
the allegations. Veracel has asked the court for clarification of the judgement 
and also will appeal against the same.     
                                     
The preparation work for possible expansion of Veracel will continue.           

For further information, please contact:                                        
Nils Grafström, President, Stora Enso Latin America, tel. +55 1181 759 283      
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197               
Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial          
Communications,                                                                 
tel. +358 40 763 8767                                                           

More information on Veracel web site www.veracel.com.br                         

www.storaenso.com                                                               
www.storaenso.com/investors                                                     

Veracel Pulp Mill, a 50/50 joint venture between Stora Enso and Aracruz, started
sustainable production of low-cost, high-quality eucalyptus pulp in May 2005.   
Veracel Pulp Mill has an annual production capacity of one million tonnes. Pulp 
deliveries from Veracel to Stora Enso totalled around 500 000 tonnes in 2007 and
were mainly shipped Stora Enso's mills in Europe and China.                     

STORA ENSO OYJ                                                                  



Jyrki Kurkinen		Ulla Paajanen-Sainio

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