Decision in principle at Holmen

New machine for wood-containing printing paper
in line with strategic direction

At its meeting on Thursday, April 26, Holmen's Board decided in
principle to invest in a new machine for the production of wood-
containing printing paper. This decision is in line with the Holmen
Group's strategic direction, which involves focusing on growth and
development in for instance newsprint and magazine paper.

The new machine will be located either at the Braviken Paper Mill in
Norrköping, Sweden, or at Papelera Peninsular's newsprint mill just
outside Madrid in Spain, which was acquired by Holmen last year. A
decision on the location of the machine will be made before the Board
makes its definite decision, which is also dependent on for instance the
question of permits and approvals being clarified with the relevant

Production start is planned for the end of 2003/beginning of 2004. The
new machine will produce standard newsprint. However, the additional
total volume will also be allocated to other production areas in wood-
containing printing paper by a redistribution of production on existing

Developments on the market for wood-containing printing paper are
believed to be promising. Additions to capacity so far announced are not
expected to match the growth in demand from 2003 and thereafter.

Holmen Paper, the Holmen Group's business area for wood-containing
printing paper, is Europe's fifth largest producer of newsprint and
magazine paper with an aggregate capacity of 1,675,000 tonnes per year.

Should the project that Holmen's Board has now decided on in principle
go ahead, Holmen Paper will be installing its tenth paper machine.

Holmen Paper is one of Europe's largest producers of MF Special
products, i.e. improved newsprint (for direct mail advertising, simple
magazines, Sunday newspapers and supplements), telephone directory
paper, and coloured newsprint.

For further information, please contact Holmen's President and CEO Per
Ericson, telephone +46 8 666 21 00, or Holmen Paper's President Göran
Lundin, telephone: +46 11 23 50 00.