27/06/2007 Press release 27.6.2007 Cut size office paper and business reels prices set to rise in September 2007 M-real, one of Europe's leading fine paper manufacturers, will increase the prices of its cut size office paper and business reels. Continued cost pressures in paper production are forcing these price increases. All markets will see a price rise of between 5-8% across all cut size office paper and business reels. The price increase will go into effect from 1st September 2007. Market cost pressures have already caused M-real to recently close down the Wifsta Paper Mill in Sweden. This mill closure alone has removed some 170,000 tonnes of cut size office paper and business reels from the market, helping redress the balance between supply and demand. M-real is working closely with its customers to implement this price increase. Individual discussions with customers will take place shortly. For further information, please contact: Marcel Bigler Senior Vice President, Sales & Marketing M-real Corporation, Office Papers Tel: +31 (0)20 572 7550