M-real says its result will weaken in 4Q 2011. Delivery volumes of pulp and paper have been lower than expected and the pulp price has decreased more than anticipated.

Also the board delivery volumes have been somewhat lower than expected as a result of rapid inventory reduction in different parts of the delivery chain. Due to these facts the 4Q 2011 operating result, excluding non-recurring items, will be clearly weaker than in 3Q 2011.

M-real starts statutory negotiations concerning all mills in Finland with the target to adapt the production temporarily for low volumes by temporary layoffs and working time arrangements.

This is an anticipatory measure if no material improvement in the order volumes experienced in late 2011 emerges. Possible actions will be decided locally at the mills. All in all, the negotiations concern approximately 1.200 people.