Stora Enso sells its Celbi Pulp Mill to Altri

STORA ENSO OYJ Stock Exchange Release 8 June 2006 at 19.20

Stora Enso sells its Celbi Pulp Mill to Altri

Stora Enso has signed an agreement to sell Celulose Beira 
Industrial (Celbi) SA, its main asset being Celbi Pulp Mill in 
Portugal, to Altri, a Portuguese company with steel, pulp and 
paper operations. The sales price of Celbi’s equity is EUR 428 
million and the company has no debt. The Group will record a 
capital gain of approximately EUR 170 million on completion of 
the sale. The transaction is expected to be completed in the 
third quarter of 2006.

“This is a strategically important divestment for us. We are 
refocusing our short-fibre strategy towards South America, where 
the first step was the start-up of the Veracel Pulp Mill in 
Brazil,” comments Stora Enso’s CEO Jukka Härmälä. Celbi Pulp 
Mill which has been a well performing asset is being divested as 
part of Stora Enso’s Asset Performance Review (APR).

Celbi’s sales in 2005 were EUR 137 million, of which EUR 55 
million were internal Stora Enso sales. Celbi’s contribution to 
Stora Enso Group’s sales in 2005 was EUR 82 million and its 
contribution to the Group’s operating profit was EUR 26 million. 
The divestment will decrease the Group’s working capital by 
approximately EUR 30 million. 

Celbi Pulp Mill has an annual production capacity of about 
305 000 tonnes of high quality short-fibre eucalyptus pulp. 
Celbi’s pulp is suitable for the production of printing, writing 
and speciality papers, and tissue. The mill obtains half of its 
fibre raw material from its own plantations of approximately 
41 000 hectares. Since the spring of 2005, the plantations have 
dual certification: FSC and PEFC. Both the pulp mill and the 
forest activities are EMAS registered. Celbi had 345 employees 
at the end of 2005. 

Altri was created in March 2005 as a spin-off from Cofina Group. 
Altri has two pulp mills and one paper machine producing sack 
kraft paper. 

For further information, please contact:
Hannu Ryöppönen, CFO, tel. +44 20 7016 3114
Kari Vainio, EVP, Corporate Communications, tel. 
+44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 20 7016 3146
Ulla Paajanen-Sainio, VP, Investor Relations and Financial 
Communications, tel. +358 40 763 8767

Jyrki Kurkinen		Ulla Paajanen-Sainio