Production is set to start at Braviken Sawmill, the largest in Scandinavia.

The first log for a customer order will be cut up in the sawmill on
12 January 2011. Production focuses on spruce construction timber that is sold to customers primarily in Scandinavia and on the European market.

"This is a historic moment for Holmen Timber, as we launch the Group¬ís second sawmill after a year and a half of construction work," comments Håkan Lindh, head of Holmen Timber. "The fact that we can start production today is the result of intensive project work and huge commitment from a large number of employees. The new sawmill in Braviken will make Holmen Timber a total supplier of sawn timber, with construction timber from Braviken and pine joinery timber from Iggesund Sawmill."

During 2011, production is expected to amount to around 300 000 cubic metres, rising to 550 000 cubic metres by 2013. The sawmill is designed to be able to produce 750 000 cubic metres, although this would require extra investment in expanded drying and planing capacity. The sawmill employs some 110 people.

The first ground was broken in August 2009 and, with the sawmill now standing ready for action, the project has been completed on schedule.

For further information, please contact:

Håkan Lindh, head of Holmen Timber,
tel. +46 (0)70-328 99 46

Ingela Carlsson, public relations director, Holmen,
tel. +46 (0)70-212 97 12

In its capacity as issuer, Holmen AB is releasing the information in this press release in accordance with Chapter 17 of the Swedish Securities Market Act (2007:528). The information was distributed to the media for publication at 10.15 CET on Wednesday 12 January 2011.