M-real Corporation Stock Exchange Release 14 January 2009 M-real Corporation's associated company Oy Metsä-Botnia Ab has today announced its decision to close its pulp mill in Kaskinen. In the statutory labour negotiations that commenced in November 2008 and concluded on 12 January 2009, the necessary economic preconditions for continuing the mill's operations could not be found so the mill will be closed during the first quarter of 2009. The mill's operations have become unprofitable due to poorer availability of competitively priced wood raw material over the long term and due to increased production costs. As a result of the closure, Metsä-Botnia will book as non-recurring expenses approximately EUR 75 million, of which EUR 20 million are cash-flow effects. The non-recurring expenses will be booked in the 2009 result during the first quarter. The Kaskinen BCTMP mill owned by M-real Corporation will continue its operations in Kaskinen normally. M-real owns 30 per cent of Metsä-Botnia. Both M-real and Metsä-Botnia are subsidiaries of Metsäliitto Group. M-REAL CORPORATION Further information: Seppo Parvi, CFO, tel. +358 10 465 4321 Juha Laine, Vice President, IR and Communications, tel. +358 10 465 4335