SYNERGY BENEFITS WITHIN STORA ENSO EXCEED EXPECTATIONS


Stora Enso has specified the estimate, published in June, of expected synergy
benefits of the merger, their realisation schedule and the non-recurring costs
of the structural changes.

According to new calculations based on a more in-depth analyses by the
divisions, the annual synergies will amount to EUR 300 million as of 2002,
which exceeds the previous estimates by about 40%. The most significant
advantages will be gained primarily through streamlining of production, in
purchasing and logistics, marketing and administration. Compared with earlier
assumptions, the synergy improvements relate primarily to the streamlining of
production and logistics. The main effects are expected within the product
areas of fine papers, packaging boards and pulp. In 1999, the synergy benefits
will exceed EUR 50 million, in 2000 they are expected to increase to about...