UPM sells UPM-Asunnot Oy to Waterhouse Real Estate Investment

(UPM, Helsinki, April 4, 2007 at 9.30) – UPM has signed an agreement on the sale of the real estate company UPM-Asunnot Oy to the Danish-Finnish real estate investment company Waterhouse Real Estate Investment Oy. The transaction is expected to be concluded in the second quarter of 2007.

UPM will book a capital gain of around EUR 35 million from the sale. The final figure will be determined based on the accounts to be prepared as at the closing of the deal. The deal is subject to approval by the Housing Fund of Finland.

UPM-Asunnot Oy owns around 2,000 rental apartments throughout Finland, and it employs 15 people. Situated mainly in the same locations where UPM has its production units, the apartments were originally built as company housing.

Today, most of the tenants are not employed by UPM, and so the company has decided to sell the apartments. The deal has no impact on rental relations.

The biggest owner of Waterhouse Real Estate Investment Oy is the Danish real estate development company KE PROJECT A/S. The company was founded in 1993 and it has operations in Denmark, Sweden and South Africa.

For further information, please contact:
Mr Kaj-Erik Lindberg, Vice President, UPM, Real Estate, tel. +358 204 15 0800