Published: 2005-01-31 13:25:00 CET
Metsä Board Corporation - Company Announcement
M-REAL FINALISES SALE OF FOREST ASSETS
M-real Corporation Stock Exchange Bulletin 31.1.2005 at 2.25 p.m.

M-REAL FINALISES SALE OF FOREST ASSETS

In accordance with the Letter of Intent signed at the end of last
year, M-real has sold its forestland to Forestia Holding Oy. The
total transaction value is EUR 172 million of which M-real´s share is
EUR 163 million. The transaction has no material effect on M-real’s
result.

The owners of Forestia Holding Oy are Metsäliitto Cooperative with a
share of 49.9%, Suomi Mutual Life Assurance Company with a share of
39.7% and the Central Union of Agricultural producers and Forest
owners with a share of 10.4 %.

EUR 24 million portion of the total sales price has been paid by M-
real´s subscribtion of a subordinated debenture issued by Forestia
Holding Oy. M-real intends to sell the debenture in the secondary
market.

Under the terms of the transaction, Forestia Holding Oy has acquired
the forest land of Suomi Mutual Life Assurance Company for a
consideration of about EUR 21 million.

The deal is part of M-real´s action plan to divest its non-core
assets.

M-REAL CORPORATION


Corporate Communications

For additional information, contact Chief Financial Officer Juhani
Pöhö, tel. +358 10 469 5283, mobile +358 50 598 7607