M-real's full year 2008 operating profit excluding non-recurring items weaker than last year

M-real Corporation Stock Exchange Release July 10, 2008

The year 2008 is challenging due to increases in production costs,
pulp production curtailments as a result of wood availability
problems, decrease in fine paper delivery volume, strengthening of
the euro and delay in coated fine paper price increase."The announced internal profit improvement actions have proceeded
even better than planned but as earlier announced they will not be
enough to cover the cost inflation this year. Most of the M-real's
product prices have been increased but the further weakened US dollar
and the British pound have considerably offset the positive effect.
Efforts to increase all product prices continue", says Mikko
Helander, CEO of M-real.

Due to above listed reasons M-real's full year 2008 operating profit
excluding non-recurring items will be weaker than last year. Earlier
M-real has not given a profitability outlook for the full year 2008.


M-REAL CORPORATION

Further information:
Seppo Parvi, CFO, tel. +358 10 465 4321
Juha Laine, VP, IR and Communications, tel. +358 10 465 4335