Stora Enso and Arauco Conclude Acquisition of the Majority of Grupo Ence's Operations in Uruguay Ahead of Schedule

• Press Release
• Source: Stora Enso Oyj
• On 9:48 am EDT, Friday October 16, 2009

HELSINKI, Finland, Oct. 16, 2009 (GLOBE NEWSWIRE) -- Stora Enso and Arauco have completed the acquisition of the majority of Grupo ENCE's operations in Uruguay announced on 18 May 2009. The joint acquisition on a 50/50 basis includes approximately 130,000 hectares of owned land and plantations, 6,000 hectares of leased lands and other operations owned by Grupo ENCE in the central and western areas of Uruguay. As previously announced, the enterprise value of the transaction, which was completed ahead of the original target of the end of 2009, was USD 344 (EUR 253) million, including USD 33 million of assumed debt. Stora Enso's share of the enterprise value is 50%.

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"I'm very proud that our team in seamless co-operation with Arauco has been able to finalise this project ahead of the original schedule. That is a promising start and will give us a solid platform to go forward with our joint venture and plans in Uruguay," says Stora Enso CEO Jouko Karvinen. "Cost-competitive plantation-based pulp is an essential part of Stora Enso's strategy and in one step, this transaction has secured the strategic raw material supply for a world class pulp mill in Uruguay that we are planning jointly with Arauco."

Stora Enso and Arauco have established a 50/50 joint venture to combine their existing assets in Uruguay. The parties will integrate the assets acquired from Grupo ENCE into this joint venture, creating a total land base of approximately 250,000 hectares, nearly half of which is planted with hardwood and softwood.

Stora Enso and Arauco have not taken any investment decision concerning the construction of a pulp mill in Uruguay.

Previous press release concerning the transaction in Uruguay available at www.storaenso.com/press

18 May 2009: Stora Enso and Arauco join forces to create a leadership position in low-cost pulp through the acquisition of the majority of Grupo ENCE's operations in Uruguay for USD 344 million

Stora Enso is the world leader in forest industry sustainability. We offer our customers solutions based on renewable raw materials. Our products provide a climate-friendly alternative to many non-renewable materials, and have a smaller carbon footprint. Stora Enso is included in the Global 100 list of the world's most sustainable companies. Stora Enso is also listed in the Dow Jones Sustainability Index, the FTSE4Good Index, and the Climate Disclosure Leadership Index. Stora Enso employs 29,000 people worldwide, and our sales in 2008 amounted to EUR 11.0 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.

STORA ENSO OYJ

Jari Suvanto

Ulla Paajanen-Sainio

Stora Enso Oyj
Nils Grafstrom, President, Stora Enso Latin America
  +55 1181 759 283
Ulla Paajanen-Sainio, Head of Investor Relations
  +358 2046 21242
Lauri Peltola, Head of Group Communications
  +358 2046 21380
www.storaenso.com
www.storaenso.com/investors