<B>UPM Looks to Buy Repap</B>

UPM-Kymmene announced plans to purchase Repap for around $108.1 million. It is the Finish company's first move into the consolidating North American market since its bid for Champion International was trumped by International Paper this past spring.

"The transaction strengthens UPM-Kymmene's global leadership in magazine papers and it is a logical step for UPM-Kymmene to become a major local magazine paper producer in North America," UPM, the world's third largest paper and board producer, said.

The announcement follows on the heels of UPM's $150 million buyout of Singapore partner APRIL's stake in the Changshu mill. UPM said the deal still needed the approval of two-thirds of Repap shareholders, with a meeting expected by mid-October, but it said both boards of directors and Repap's two largest owners supported the bid.

UPM-Kymmene said it had the right to take a 19.9 percent stake in Repap in case a competing bid was made for Repap.