An agreement has been reached between Holmen and Valmet on the delivery of
a paper machine and a reeling machine to Holmen's Hallsta Paper Mill.

On October 27 this year, Holmen's Board approved the investment of MSEK
1,850 in a new paper machine and other equipment. The machine will be used
to produce high-bright printing paper, known as MF Magazine, for the very
fast growing market for specialist magazines, newspaper supplements and
advertising inserts.

The new machine will replace a 35-year old machine, and will have an
annual capacity of 330,000 tonnes.

The machine is expected to be ready for commissioning in April 2002 and
will be equipped with an OptiFlo headbox, an OptiFormer wire section, an
OptiPress press section with two nips, known as shoe presses, and an
OptiLoad vertical on-line calender unit. The reeling machine is of the
Wind Belt type.

Holmen AB, P.O. Box 5407, SE-114 84 Stockholm, Sweden.

Visiting address: Strandvägen 1, Stockholm.

Tel: +46 8 666 21 00   E-mail: info@holmen.com

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