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