<b>SCA Unit Enters Agreement</b>

Svenska Cellulosa AB said its packaging unit, SCA Packaging, entered into a strategic alliance with Nefab AB, within the industrial packaging sector to jointly develop products, services, marketing, sales and logistics.

The company said the partnership will work on the general principle that the lead role in future ventures will go to the party with the strongest position in a particular market or area of expertise. To ensure the new relationship works smoothly a joint steering group is being formed with equal representation from both companies.

The partnership will also involve close collaboration with SCA's new global protective packaging division being created in North America from its acquisition  of Tuscarora.