UPM-Kymmene Corporation announces share subscriptions

In October, bonds totalling FIM 920,000 of the subordinated convertible bond loan of FIM 960 million, issued in 1994, were converted into 7,176 shares. An application will be submitted for listing the shares together with the old shares on the Helsinki Stock Exchange as of 13 November, 2001.

The company's number of shares to be entered into the Trade Register on 12 November, 2001 will increase to a total of 247,593,223 shares and the share capital will be EUR 420,908,479.10.

The annual period of conversion is from 1 January to 31 October. During the year 2001, bonds totalling FIM 66,680,000 were converted into 520,104 shares. In total, bonds of FIM 544,630,000 have been converted into 4,248,114 shares including all share subsciptions from previous years. If the entire outstanding loan of FIM 415,370,000 is converted into shares, there will be an additional 3,239,886 new shares and the company's share capital will increase by EUR 5,507,806.20.

In the loan one FIM 10,000 bond entitles to subscribe 78 shares, which results in a calculated conversion price per share of FIM 128.21 (EUR 21.56). There are no restrictions on transferring or assigning the shares. The shares subscribed entitle holders to dividend for the first time from the year 2001. Other shareholders' rights apply as soon as the increase in share capital has been entered into the Trade Register.

UPM-Kymmene Corporation has been granted permission by the Financial Supervision Authority on 2 June, 1998 not to publish an Offering Circular for the shares to be subscribed based on the above mentioned loan.

UPM-Kymmene Corporation
Corporate Communications
9 November, 2001