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2000-04-28

Holmen's Board decided at its meeting on Friday April 28 to invest
MSEK 295 within its Holmen Paper business area. The investment will be
focused solely on the quality of standard newsprint produced on one of
Hallsta's paper machines. The purpose is to improve the runnability and
printability of the paper as well as its colour reproduction.

Holmen Paper's most important customers are leading publishers, whose
quality requirements are steadily being raised. This is a consequence of
several factors including the dramatic growth in the use of four-colour
print, high-speed printing presses and the wish to reduce the grammage of
the paper.

The Board's decision shall be seen as an important stage in the process of
strengthening Holmen Paper's position among its key customers on the
markets for standard newsprint and improved special newsprint. The
investment project is expected to be completed in May 2001.

Production on the paper machine in question is based equally on recovered
paper and virgin fibre.

The mill is located in Hallstavik, north of Norrtälje. There are around
1,000 employees. The mill's annual production capacity amounts to 670,000
tonnes.

For comments, please contact Per Ericson, Holmen's President and CEO
(telephone: +46 8 666 21 00), and Göran Lundin, Holmen Paper's President
(telephone: +46 11 23 50 00) between 4 and 5 p.m. this afternoon.



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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