The Board of Holmen has decided to complete the Iggesund Sawmill by
investing MSEK 75 in a new wood sorting unit with the object of
significantly improving the sawmill's profitability.

The investment will replace the previously announced finishing unit, the
cost of which was estimated at MSEK 175.

The new unit is expected to be brought into production at the end of the
current year, at which time Iggesund Timber will discontinue its
activities at Håstaholmen in Hudiksvall.

As a consequence of this investment and the plans to discontinue the
activities at Håstaholmen, Iggesund Timber will open negotiations
pursuant to the Swedish
Co-Determination at Work Act on reductions in the work force.

For further information, please contact Johan Hedin, President of
Iggesund Timber. Telephone +46 70 211 08 56.

Holmen AB (publ) · Group Public Relations · P.O. Box 5407 · SE-114 84
Stockholm · Sweden
Tel: +46 8 - 666 21 00 · Direct: +46 8 - 666 21 15 · Fax: +46 8 - 666 21 30
E-mail: ·