M-real Corporation, part of Metsäliitto Group, has today signed a Memorandum of Understanding (MOU) regarding a partial divestment of the Reflex mill to Metsä Tissue Corporation, also a part of Metsäliitto Group, for approximately EUR 10 million. The planned divestment includes the paper machine 5 and related real estate as well as certain infrastructure assets. Metsä Tissue is planning to convert the paper machine to grades that are not competing with M-real's grades.

Based on preliminary plans, Metsä Tissue would employ about 50 employees, reducing the corresponding amount of redundancies agreed earlier at Reflex site.

If the transaction is consummated as planned M-real books a positive EUR 15 million non-recurring item in Speciality Papers business area's operating result related to the transaction proceeds and the partial reversal of earlier announced personnel cost provisions. Cash impact would be approximately EUR 10 million positive taking into account certain investments needed in the Premium Papers production at the site.

The transaction is expected to be closed during 4Q 2010. M-real will continue to further develop the paper park concept at Reflex site.

M-real announced on 21 May 2010 that Reflex mill will be developed based on a paper park concept and that the target is to find industrial partnerships and thus create new jobs at the mill site. At the same time, it was announced that negotiations to reduce M-real Zanders mills' headcount by 220 were finalized and Speciality Papers business area's 2Q 2010 operating result would include an approximately EUR 16 million non-recurring cost provisions.

For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10 465 4335