UPM's President and CEO, Jussi Pesonen: "Development of Botnia should be focused on pulp users' needs"

(UPM, Helsinki, February 1, 2007) – UPM today commented on M-real Corporation's decisions to reject UPM's EUR 500 million offer for a 15% stake in the pulp producer Botnia and sell a 9 % stake in the company to the Metsäliitto Group for EUR 240 million.

"We made the best offer. In our offer we stated that we would be ready to discuss other alternatives as appropriate. During November-January UPM made multiple requests to M-real to start negotiations. However, they did not lead to negotiations", said Mr Pesonen during a press conference on 2006 earnings.

"We believe that both M-real and UPM share common business interests in Botnia as major pulp users. Cost efficient high-quality pulp is an important component of value creation for both of us."

Pesonen said that the business goes on and the development of Botnia will continue with UPM's support. "The value of Botnia, however, will be enhanced only, if it is developed focusing on pulp users' needs."