Business News

M-REAL AGREEMENT ON PENSION LIABILITIES IN UK

Monday 31. March 2008 - M-real has concluded an agreement with regard to the pension liabilities of its UK industrial operations related to the sale of the New Thames mill and the closure of the Sittingbourne mill, both of which have already been announced.

The combined impact of the sales agreement and the pension liabilities arrangement on M-real’s financial result is positive, about EUR 24 million, instead of being the neutral effect that was foreseen, and the corresponding impact on cash flow will be approximately EUR 82 million instead of the previously announced estimation of EUR 60 million. Approximately EUR 65 million of the cash flow impact was incurred when the New Thames sale and the pension agreement were completed, and approximately EUR 17 million will be realised during the next 12 months.