<B>SCA Selling its Modo Division</B>

SCA is selling its 50 percent shareholding in Modo Paper to Metsa Serla. At the same time, SCA is acquiring Metsa Serla's 65 percent holding in Metsa Tissue.

In addition, SCA is acquiring Metsa Serla's entire corrugated board operation, Metsa Corrugated. Metsa Serla's production of containerboard is not included in the transaction.

Simultaneously, Holmen is divesting its entire holding to Metsa Serla on identical terms as SCA.

The decision to divest Modo Paper is in line with SCA's objective of consolidating operations to three core areas: Hygiene Products, Packaging and Publication Papers. SCA's commitments to fine paper operations have been limited in a historical perspective.

For SCA, the acquisition of Metsa Tissue and Metsa Corrugated offers an opportunity to develop the Group's Hygiene Products and Packaging business areas in the Nordic region. Within Tissue, Nordic operations will more than double, while tissue operations on the European continent will increase by around 25 percent.

SCA's Hygiene Products operations in the Nordic countries will increase by about 40 percent, which means a significant improvement in the company's relative position in the category for disposable products for personal hygiene for both retail and institutional customers.

All of the transactions are subject to EU approval. In regard to the fine paper and corrugated board transactions, the buyers have pledged to implement any divestments required from a competition perspective. SCA's commitments in the tissue transaction are limited in this respect.