UPM initiates share buyback

(UPM, Helsinki, August 20, 2007 at 16.35) – UPM's Board of Directors has today decided to exercise the authorisation of the Annual General Meeting of shareholders on 27 March 2007 to buy back the Company's own shares. According to the decision of the Board of Directors, the Company may acquire not more than 16,400,000 of own shares.

The shares will be acquired in public trading on the Helsinki Stock Exchange at the prevailing market price at the time of purchase using the Company's non-restricted equity. The purchase price for the shares will be paid according to the applicable rules of the Helsinki Stock Exchange.

In accordance with the authorisation, the shares will be acquired to be used for financing of corporate acquisitions and investments or other business operations and as part of the company's incentive programs, or to be held by the company, relinquished or invalidated.

The share buyback will be started on 29 August 2007 at the earliest and completed before 27 September 2008.

For further information, please contact:
Mr Juha Mäkelä, General Counsel, +358 204 15 0407