Proposed Board of Directors and Group Management in Stora Enso

STORA and Enso, the Finnish forest-products company, announced on June 2 that the companies had decided to merge. Agreement has now been reached with respect to the persons being proposed to serve as members of the Board of Directors and Group Management, and in other executive positions. It is proposed that the Board of Directors of Stora Enso consist of the following members: Josef Ackermann, Krister Ahlström, Claes Dahlbäck, Harald Einsmann, Björn Hägglund, Jukka Härmälä, Raimo Luoma, Paavo Pitkänen, Jan Sjöqvist and Marcus Wallenberg. Claes Dahlbäck has been designated Chairman and Krister Ahlström Vice Chairman of the Board. Jukka Härmälä has been designated President and Chief Executive Officer and Björn Hägglund Deputy Chief Executive Officer. CVs of the above persons may be ordered from STORA, Group Staff Communications, fax +46 23 25329, or from Enso Corporate Communication, fax +358 2046 21 267. Stora Enso's Steering Committee, consisting of Claes Dahlbäck, Krister Ahlström, Jukka Härmälä, Björn Hägglund and Juhani Pohjolainen, has given to the Board of Directors its proposition for the Stora Enso Group Management team. Group staffs reporting to CEO Jukka Härmälä: Financial Control and Legal, headed by Esko Mäkeläinen, SEVP (Senior Executive Vice President): - Accounting - Corporate finance - Controlling - Insurance - Legal - Internal auditing Investor Relations and Financial Services, headed by Ingvar Petersson, SEVP: - Investor relations - Financial services - Financial risk management - Information technology Strategy and Business Development, headed by Kimmo Kalela, SEVP: - Long range planning - Portfolio analysis - Market research - Merger and acquisitions - Investments - Global fiber strategy - Marketing services Communication, headed by Kari Vainio, EVP (Executive Vice President): - External communication - Internal communication Group staffs and Groupwide functions plus operating units (divisions) reporting to Deputy CEO Björn Hägglund: Continuous Productivity Improvement, headed by Per Knuts, SEVP: - Total quality management - Productivity programs Corporate Support, headed by Yngve Stade, SEVP: - Purchasing - Logistics operations - Research and development including technical support - Environmental services and policies Base Resources, headed by Ingvar Petersson, SEVP: - Power (in Sweden and Finland) - Forests (in Sweden and Finland) Human Resources, headed by Christer Ågren, EVP Fine Papers: Jouko Taukojärvi, SEVP; Lars Bengtsson, EVP: - Sheets and reels - UCWF & CWF - Global marketing and sales Packaging: Pekka Laaksonen, SEVP: - Consumer packaging - Industrial packaging - Global marketing and sales Newsprint: Kai Korhonen, SEVP: - Newsprint - Catalogue and book papers - Global marketing and sales Magazine Papers: Horst Thaler, SEVP: - SC - LWC, MWC, MFC - Global marketing and sales Sawn Products: Arno Pelkonen, EVP: - Production - Global marketing and sales Pulp: Bert Östlund, EVP: - Production - Global marketing and sales Merchants: Sven Rosman, EVP: - European marketing and sales Asia Pacific: Seppo Hietanen, EVP: - Regional assets - Regional sales Negotiations in accordance with the law on codetermination in the work place have been conducted in Sweden. Country organizations Stora Enso will operate with a country organization in Sweden, Finland and Germany. Each organization will be responsible for country-specific matters in such areas as industry relations, environmental, employer and personnel issues, communications and legal matters. The country organization will have no responsibility for commercial matters. Björn Hägglund is responsible in Sweden, Kimmo Kalela in Finland and Horst Thaler in Germany. Continued work related to the merger The next step will involve the integration and location of divisions, Group functions and staffs. Depending on the approval by European Union competition authorities and by STORA's and Enso's shareholders, this work will continue. For additional information, please call: - Jukka Härmälä, President and CEO, Enso. Tel.: +358 2046 21404 - Björn Hägglund, President and CEO, STORA. Tel.: +46 23 78 00 00 - Christer Ågren, Senior Vice President Human Resources, STORA. Tel.: +46 8 613 66 00 - Kari Vainio, Senior Vice President Communications, Enso. Tel.: +358-2046 21393,-40 500 1063