<B>AssiDoman Cancels Sale of Operation</B>

AssiDoman's board of directors decided to abort the sale of AssiDoman Cartonboard that was initiated this past December. Negotiations with several different parties have shown that it is not possible at the present time to create a better structure for the carton business at a price acceptable to AssiDoman. The general decline in the valuation of forest industry shares that has taken place during the past six months, has contributed to a lower valuation of Cartonboard by potential buyers.

AssiDoman's Board of Directors has concluded that Cartonboard has a strong potential for achieving good earnings. It is therefore important not to rush the structural changes so that considerable value is lost along the way. The assessment that the Cartonboard business unit will have better prospects of achieving optimal long-term profitability within a larger business structure outside AssiDoman remains, however.

AssiDoman Cartonboard consists of an integrated pulp and board mill in Frovi. Pulp capacity is 250,000 metric tons and board capacity is 350,000 metric tons. The principal products are liquid packaging board and packaging board.