SCA divests parts of its UK packaging operations and closes New Hythe mill - focus on value added packaging

SCA divests parts of its UK packaging operations and closes New Hythe mill -
focus on value added packaging

SCA has today signed an agreement for the sale of the UK and Ireland
conventional corrugated business. The purchaser is Spanish SAICA and the
purchase price amounts to GBP 100 million (EUR 125 million). The divested
business has annual sales of approximately GBP 240 million (EUR 300 million).
After the divestiture, SCA will focus on specialized packaging in its operations
in the UK and Ireland. 


“The European packaging market is in great need of consolidation. SCA's focus is
on increasing value added parts of the packaging business and also on creating
growth in the Eastern part of Europe, while consolidating our existing
operations in Western Europe. We carry through today's deal as the investment
required to rebuild a competitive position in the segments we divest is not
justified, given our chosen strategy”, comments Jan Johansson, President and CEO
of SCA.

The purchase price is GBP 100 million (EUR 125 million) and will be paid in
cash. This transaction will improve operating profit and cash flow and will not
result in neither capital gain nor capital loss. The transaction, which is
subject to approval from relevant authorities, is expected to be completed
during the third quarter this year. Approximately 1,800 people are currently
employed in these operations. A supply agreement has been signed, where SCA will
supply kraftliner at today's volumes to SAICA over a five-year period and for
testliner over a three year period.

SCA is also announcing the intention to close the New Hythe containerboard mill
(testliner and fluting) with a capacity of 240,000 tons by mid 2010. One reason
is that the new focus doesn´t require local paper production. Consultation with
the unions will be initiated.

SCA will retain ownership of and continue to develop the specialized value-added
packaging operations in the UK and Ireland. They show good profitability and
strengthen the SCA overriding strategy, focusing on higher value added. These
operations have a turnover of approximately GBP 130 million (EUR 163 million)
with about 1,400 people employed.

SAICA is a privately owned Spanish paper and packaging company with sales of
approximately EUR 1,600 million. SAICA operates paper mills and corrugated
facilities in a number of European countries, including the UK.


Phone conference
Questions will be answered by President and CEO Jan Johansson at today's phone
conference for media and analysts, Wednesday June 18th, at 11.00 CET. 

To participate, please call:

+46 8 505 202 70
+44 (0) 208 817 9301
+1 718 354 1226

An audio playback version of the phone conference will be available as of 30
minutes after the end of the phone conference. Call +44 (0) 207 769 6425. The
passcode to enter the recording is 1305749#.


Stockholm, June 18, 2008  


For further information please contact
Pär Altan, VP Media Relations, +46 8 788 52 37
Johan Karlsson, VP Investor Relations, +46 8 788 51 30


NB
This information is such that SCA must disclose in accordance with the
Securities Markets Act. 


SCA is a global consumer goods and paper company that develops and produces
personal care products, tissue, packaging solutions, publication papers and
solid-wood products. Sales are conducted in some 90 countries. SCA has many
well-known brands, including the global brands Tena and Tork. Sales in 2007
amounted to SEK 106 billion (EUR 11.4 billion). SCA has approximately 50,000
employees. More information at www.sca.com