Holmen intends to appeal against the tax authority's decision to impose
a tax surcharge on MoDo Capital AB, a subsidiary of Holmen. The
aggregate amount of taxes and charges is some MSEK 500.

The company does not share the tax authority's view on the case.

Holmen considers that the case has already been subject to legal process
and settled. The tax authority investigated the matter already in 1998,
when it refused to allow a tax deduction. The company appealed against
this decision to the county administrative court, which judged in the
company's favour and allowed the tax deduction in its decision of May
22, 2001. This decision was not appealed against by the tax authority
and has thus come into legal effect.

The company considers that the tax authority is not entitled to impose
this tax surcharge, nor does it agree with the opinion of the tax
authority in other respects.

For further information, please contact Anders Almgren, Holmen's CFO,
Tel. +46 8 666 21 00.