<B>SCA Looks to Upgrade Mill</B>

In an effort to capitalize on a unique opportunity for continued value appreciation of the operations in the paper mill at Laakirchen, Austria, a modernization project will be implemented.

An older paper machine (40 years), with a capacity of 90,000 metric tons, will be shut down and replaced by a new machine with an annual capacity of 240,000 metric tons, also fully intended for production of high-quality SCA paper.

The increased capacity will be available successively during the years 2003-2005. In total, the capacity addition corresponds to slightly less than market growth of one year in the product area.

Additionally, the new machine is pre-equipped for expansion at a later date to a capacity of 400,000 metric tons and could at that time also produce LWC grades. No impact on the favorable market balance now prevailing between supply and demand in the area is expected as a result of the marginal capacity effect of the project.