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Holmen has acquired 38 per cent of Llau Redmat, a French recovered paper
company. The purchase-sum is some EUR 3 million.

The acquisition is strategic, as it reinforces the supply of raw
material to Holmen's Spanish newsprint mill, Papelera Peninsular, where
production is based exclusively on recovered paper.

Holmen is already part-owner in recovered paper companies in Spain and

Llau Redmat has operations in southern France, which, together with the
Iberian Peninsula, is the natural market for purchasing the recovered
paper used by Papelera Peninsular.

Papelera Peninsular was acquired by Holmen in 2000. The mill has a
capacity of 170,000 tonnes a year and approximately 225 employees.

For further information please contact Christer Lewell, Holmen's Group
Public Relations Director. Tel. +46 8 666 21 15.

The Holmen Group

Holmen is a forest industry group that manufactures printing paper, paperboard and sawn timber and runs forestry and energy production operations. The company’s extensive forest holdings and its high proportion of energy production are strategically important resources for its future growth.

Holmen AB

Tel: 08-666 21 00

E-post: info@holmen.com

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