M-real Corporation and Arjowiggins cancel sales agreement

Nordic Business Report, June 13, 2008

NORDIC BUSINESS REPORT-13 June 2008-M-real Corporation and Arjowiggins cancel sales agreement(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish forest industry group M-real Corporation (OMX Helsinki:MRLAV) (OMX Helsinki:MRLBV), part of Metsaliitto Group, said on Friday (13 June) that it has agreed with Arjowiggins not to pursue the sale of M-real's Reflex mill.

The parties entered into the sale and purchase agreement on 12 October 2007 and the transaction was conditionally approved by the European Commission on 4 June 2008.

The condition was that Arjowiggins should divest Reflex mill's carbonless and digital imaging businesses to a third party, M-real said.

After thorough analysis, the parties concluded that the rationale to complete the transaction under the condition was considerably weakened, the company added.

M-real Corporation, headquartered in Espoo, Finland, is a European paper company with products for consumer packaging, communications and advertising. M-real generated a turnover of EUR5.6bn in 2006 and has 15,500 employees.

One British pound (GBP) is worth approximately 1.25 euros (EUR).

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