M-real's operating result for July-September excluding non-recurring items was EUR -22 million.

(From Hugin)

M-real Corporation Interim report 1 January-30 September 2009, 22.10.2009 at 12

Result for January-September 2009

Sales EUR 1,826 million (Q1-Q3/2008: 2,514)

Operating result excluding non-recurring items EUR -157 million (16). Operating result including non-recurring items was EUR -215 million (100).

Result before taxes from continuing operations excluding non-recurring items EUR -215 million (-91). Result before taxes including non-recurring items totalled EUR -284 million (-7).

Earnings per share from continuing operations excluding non-recurring items were EUR -0.64 (-0.31) and including non-recurring items EUR -0.83 (-0.05)

Result for the third quarter of 2009

Sales EUR 618 million (Q2/2009: 585)

Operating result excluding non-recurring items EUR -22 million (-70). Operating result including non-recurring items EUR -24 million (-73).

Result before taxes excluding non-recurring items totalled EUR -70 million (-83). Result before taxes including non-recurring items EUR -72 million (-97).

Earnings per share from continuing operations excluding non-recurring items were EUR -0.22 (-0.24) and including non-recurring items EUR -0.22 (-0.29)

Events during the third quarter

The result of the Consumer Packaging business area improved significantly.

Major pulp mill boiler rebuild implemented in Husum.

M-real received a EUR 190 million cash payment as the final settlement from Sappi on 27 August 2009 related to the divestment of the Graphic Papers business at the end of 2008.

A letter of intent regarding the new ownership structure of M-real's associated company Metsa-Botnia and the divestment of Metsa-Botnia's operations in Uruguay to UPM-Kymmene was signed on 15 July 2009.

Events after the period

An agreement on the new ownership structure of M-real's associated company Metsa-Botnia and the divestment of Metsa-Botnia's operations in Uruguay to UPM-Kymmene was signed on 22 October 2009.

"The demand picked up especially for paperboard, which combined with the efficiency improvement measures, significantly improved the profitability of Consumer Packaging. The adaptation of M-real after the divestment of Graphic Papers and the streamlining of the remaining paper business have proceeded according to plans. These measures have a considerable negative result impact this year. The profit impact of these successful measures will be seen clearly during the next year."

Mikko Helander, CEO, M-real Corporation

KEY FIGURES 2009 2009 2009 2008 2009 2008 2008 Q3 Q2 Q1 Q3 Q1-Q3 Q1-Q3 Sales, EUR million 618 585 623 826 1,826 2,514 3,236 EBITDA, EUR million 27 -23 -48 49 -44 272 254 excl. non-recurring items, EUR million 26 -20 -13 60 -7 188 192 Operating result, EUR million -24 -73 -118 -8 -215 100 -61 excl. non-recurring items, EUR million -22 -70 -65 3 -157 16 -35 Result before taxes from continuing operations, EUR million -72 -97 -115 -45 -284 -7 -204 excl. non-recurring items, EUR million -70 -83 -62 -34 -215 -91 -178 Result for the period from continuing operations, EUR million -73 -93 -105 -44 -271 -7 -170 from discontinued operations, EUR million -3 -2 -10 -212 -15 -276 -338 Total, EUR million -76 -95 -115 -256 -286 -283 -508 Result per share from continuing operations, EUR -0.22 -0.29 -0.32 -0.15 -0.83 -0.05 -0.55 from discontinued operations, EUR -0.01 -0.01 -0.03 -0.64 -0.05 -0.84 -1.03 Total, EUR -0.23 -0.30 -0.35 -0.79 -0.88 -0.89 -1.58 Result per share excl. non-recurring items, EUR -0.22 -0.24 -0.18 -0.13 -0.64 -0.31 -0.48 Return on equity, % -27.2 -32.1 -32.0 -10.1 -29.7 -0.6 -10.4 excl. non-recurring items, % -26.6 -27.2 -17.6 -8.3 -22.9 -7.2 -9.0 Return on capital employed, % -2.3 -10.2 -13.4 -0.5 -8.5 4.9 -1.3 excl. non-recurring items, % -2.0 -8.3 -7.0 1.0 -5.6 1.3 -0.5 Equity ratio at end of period, % 28.5 29.4 30.3 32.5 28.5 32.5 30.8 Gearing ratio at end of period, % 170 168 151 129 170 129 152 Net gearing ratio at end of period, % 121 116 101 114 121 114 90 Interest-bearing net liabilities, EUR million 1,262 1,276 1,243 1,865 1,262 1,865 1,254 Gross investments, EUR million 23 16 16 38 55 89 128 Deliveries, 1 000 tonnes 0 Paper businesses 275 269 321 438 866 1,368 1,761 Consumer Packaging 315 296 274 348 885 1,041 1,345 Personnel at the end of period in continuing operations 5,649 6,080 6,314 6,679 5,649 6,679 6,546 in discontinued operations 2,159 2,159 EBITDA = Earnings before interest, taxes, depreciation and impairment charges

Result for July-September compared with the previous quarter M-real's sales totalled EUR 618 million (Q2/2009: 585). Comparable sales were up 5.7 per cent. The operating result was EUR -24 million (-73), and the operating result excluding non-recurring items was EUR -22 million (-70).

Non-recurring items totalling EUR -2 million were recognised in the operating result consisting of the following:

EUR 3 million cost related to profit improvement measures of the Husum mill of which EUR 2 million in Office Papers business area and EUR 1 million in Market Pulp and Energy business area.

EUR 1 million income related to closure of Hallein Paper in speciality Papers business area.

The non-recurring items for the previous quarter totalled EUR -3 million net due to the implemented efficiency improvement measures.

The operating result excluding non-recurring items compared with the previous quarter was improved by increased delivery volumes, higher selling price of pulp and implemented cost savings. The result was weakened by a decrease in the price of uncoated fine paper, the investment and maintenance shutdown at the Husum mill and costs associated with the discontinuation of the standard coated fine paper production.

The total paper business delivery volume was 275,000 tonnes for July-September (269,000). Deliveries by the Consumer Packaging business area totalled 315,000 tonnes (296,000).

Financial income and expenses totalled EUR -47 million (-12). Foreign exchange gains and losses from accounts receivable, accounts payable, financial income and expenses and the valuation of currency hedging were EUR 2 million (2). Net interest and other financial income and expenses stood at EUR -49 million (-14). Other financial expenses do not include valuation gains on interest rate hedges (valuation gain of 7). A loss of EUR -30 million was booked in the financial expenses due to the early repayment of the vendor notes issued to Sappi.

The result from continuing operations in July-September before taxes was EUR -72 million (-97). The result from continuing operations before taxes excluding non-recurring items was EUR -70 million (-83).

Income taxes, including the change in deferred tax liabilities, came to EUR -1 million (+4).

Earnings per share were EUR -0.23 (-0.30). Earnings per share from continuing operations excluding non-recurring items were EUR -0.22 (-0.24). The return on equity was -27.2 per cent (-32.1); excluding non-recurring items, -26.6 per cent (-27.2). Return on capital employed was -2.3 per cent (-10.2); excluding non-recurring items -2.0 per cent (-8.3).

Result for January-September compared with the corresponding period last year M-real's sales totalled EUR 1,826 million (2,514). Comparable sales were down 23.8 per cent. The operating result was EUR -215 million (+100), and the operating result excluding non-recurring items was EUR -157 million (+16).

Non-recurring items in the operating result for January-September totalled EUR -58 million net, including the following key items:

EUR 28 million cost provisions and write-downs in the Speciality Papers business area connected to the closure of the Hallein paper mill.

EUR 22 million cost provisions and write-downs associated …