Stora Enso Timber restarts Veitsiluoto Sawmill at lower production volume

Stora Enso Oyj News Release March 22, 2006 at 8:30 GMT

HELSINKI, Finland - Stora Enso (NYSE: SEO) today announced that Stora Enso has decided to restart operations at Veitsiluoto Sawmill in Northern Finland in spring 2006. The mill has been idle and the personnel laid off temporarily since July 2005 owing to severe profitability problems. Veitsiluoto Sawmill has been on the Group's divestment list since October 2005.

The restart is expected to result in satisfactory profitability of the mill at lower production volume. The main changes in the operating environment of the mill that have enabled the restart are more favourable wood raw material costs and improved market prospects for Nordic redwood products, as well as locally agreed flexible working.

The mill will start in one-shift operation with 28 personnel excluding contractors. The annual capacity in one-shift operation is 100 000 m3 (former annual capacity was 300 000 m3). In the longer term, the restart of Veitsiluoto Sawmill is expected to deliver better overall results for Stora Enso than the carefully explored possible divestment.

For further information, please contact:
Tim Laatsch, Senior Vice President, Communications, Stora Enso
North
America,
tel. 715 422 4023

www.storaenso.com
www.storaenso.com/investors

Stora Enso is an integrated paper, packaging, and forest products company, producing publication and fine paper, packaging board, and wood products - all areas in which the Group is a global market leader. Stora Enso's sales totalled EUR 13.2 billion in 2005. The Group has some 46 000 employees in more than 40 countries on five continents. Stora Enso has an annual production capacity of 16.9 million tonnes of paper and board and 7.7 million cubic metres of sawn wood products, including 3.3 million cubic metres of value- added products. Stora Enso's shares are listed in Helsinki, Stockholm, and New York.

Stora Enso Oyj
Business ID 1039050-8

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