UPM's President and CEO Jussi Pesonen at the Annual General Meeting: "Paper markets developed as expected"

"Paper markets have, in broad terms, developed according to estimates UPM made in January. Paper deliveries have increased from last year. Average paper prices in Europe, except for newsprint, have stayed at the year end level. Increases in magazine paper prices in the US seem possible and US dollar price increases in overseas markets have already materialized. Paper prices are, however, clearly lower than a year ago."

"In January, we estimated that the operating profit for this quarter would be somewhat lower than a year ago. According to IFRS, the operating profit before non-recurring items for Q1/2003 was EUR 122 million. Now we estimate that the operating profit before non-recurring items for the current period will be about one fifth less than in 2003," said Pesonen.


UPM
Corporate Communications
March 24, 2004