UPM to refurbish Voikkaa hydropower plant

(UPM, Helsinki 12 April 2011 at 10.30) - UPM will refurbish the Voikkaa
hydropower plant located on the Kymi River in south east Finland. The
refurbishment work will start up late 2011, and will take about two years.

Discussing the refurbishment, Mr Pekka Pollari, Hydropower Manager for UPM
said: “We will renovate one generation unit, turbine and electrical system. In
addition, we will renew all the control and automation systems.”

Located next to the Voikkaa business area the renovated hydropower plant will
be ready by the end of 2013. UPM will use several million euros for upgrading
the plant, some of which is more than 50 years old. As a result of the
refurbishment, the power plant will produce more renewable electricity from the
same amount of water.

The refurbishment of Voikkaa hydropower plant is part of UPM's systematic
modernisation programme of its hydropower plants in Finland.

In 2010, UPM completed refurbishment projects at Koivukoski and Ämmäkoski
hydropower plants by the River Kajaani in Eastern Finland, and Keltti
hydropower plant by the River Kymi in Kouvola, Finland. The total combined cost
of these renovations was over 20 million euros.

“With the modernisation programme we have improved the operational efficiency
and environmental safety of our hydropower plants,” Pollari says.

For more information, please contact:

Mr Pekka Pollari, Hydropower Manager, UPM Energy Business Area, tel. +358 204
152 587


About UPM Energy Business

UPM's Energy Business Area continues to develop in line with the growth of the
climate-friendly energy market. UPM has a solid platform for further
development based on our expertise in market operations, as well as our
unrivalled knowledge in renewable and versatile energy production. We have 70
energy professionals to further enhance our business in Nordic and Central
European markets.

Today, UPM is the second largest electricity producer in Finland. UPM's
diversified and cost competitive electricity production capacity consists of
hydropower, nuclear power, conventional condensing power and biomass-based
combined heat and power (CHP).

UPM owns nine hydropower plants in Finland and has shareholdings in hydropower
via Pohjolan Voima Oy, Kemijoki Oy and Kainuun Voima Oy. Nearly one fourth of
the UPM's electricity capacity comes from hydropower.

Most of UPM's hydropower plants were built between the 1930's and 1950's.
Hydropower plants have a long life span and their maintenance costs are low -
they generate electricity in a cost efficient way and their use can be easily
adjusted according to needs.