UPM-Kymmene Corporation's Board of Directors has decided on the distribution of the stock options, issued by the Annual General Meeting of UPM-Kymmene Corporation on March 31, 2005, to the company's key personnel as well as to a wholly owned subsidiary of UPM-Kymmene Corporation, Unicarta Oy.
The stock options 2005F will entitle to the subscription of a maximum of 3,000,000 shares in UPM-Kymmene Corporation. A total of 2,840,500 stock options 2005F were distributed to company's key personnel. The rest of the stock options were issued to Unicarta Oy, to be distributed to the key personnel employed or to be recruited by the UPM-Kymmene Group.
The share subscription period for the stock options 2005F shall be October 1, 2006 – October 31, 2008. The share subscription price is EUR 18.23, which is the trade volume weighted average quotation of UPM-Kymmene Corporation's share on the Helsinki Stock Exchange between January 1 – February 28, 2005 with an addition of 10 per cent. The amount of dividend decided annually will be deducted from the share subscription price.
A share ownership plan is incorporated to the 2005 stock option arrangement. People belonging to the top management will be obligated to acquire the company's shares with 20% of the gross income gained from the sale of stock options.
Stock option 2005 terms and conditions are available at the company's website www.upm-kymmene.com > Investor Relations > Shares > Option programs.
June 3, 2005