Alters decision on investment at Iggesund Sawmill

Holmen's Board decided on Wednesday to alter the decision made in
December 2000 to invest MSEK 175 in a finishing unit at the sawmill in

Following this new decision, the sawmilling business will continue in
its present form, while all possible measures will be taken to reduce
costs and improve efficiency.

The decision was made in response to the unsatisfactory profitability of
the Iggesund Timber business area in recent years and the genuine
uncertainty currently prevailing in the Swedish sawmilling industry.

Holmen will now make an in-depth investigation into the cost situation
as well as market and technical conditions, after which a decision will
be made on the future development. The intension is to complete the

For further information, please contact Göran Lundin, President and CEO
of Holmen. Telephone: +46 8 666 21 00.