Myllykoski Corporation Interim Report January - September 2008

The financial results for the July - September 2008 were better than for April - June 2008 and the corresponding period July - September last year.

Net sales by the Myllykoski Group in January - September 2008 totalled EUR 1,087 million, which is EUR 11 million higher than in the corresponding period in 2007 (EUR 1,076 million). Net sales in July - September 2008 came to EUR 375 million. Net sales in the corresponding period in 2007 were EUR 341 million. Net sales in the second quarter of 2008 totalled EUR 360 million.

Operating profit for January - September was EUR 8 million, compared with an operating loss of EUR 3 million in the corresponding period last year. Operating profit for July - September 2008 amounted to EUR 8 million. Operating profit for the second quarter of 2008 amounted to zero.

The loss before tax for January - September was EUR 15 million, compared with a loss of EUR 22 million in January - September 2007. The profit before tax for the third quarter of the year amounted to zero. The loss before tax for April - June 2008 was EUR 9 million.

Total output in January - September 2008 amounted to 1,726,000 tonnes, which is slightly less than in the previous year. The production for 2007 included the output of MD Dachau, which was closed in June. Demand for coated paper weakened during the summer, and output was restricted. The markets for uncoated paper grades remained good.

Magazine paper prices were increased at the start of July.

Financial performance and position

Key figures for the Group:

	7-9/2008	7-9/2007	1-9/2008	1-9/2007	1-12/2007
Net sales, EUR million	375	341	1 087	1 076	1 445
Operating profit/loss, EUR million	8	-9	8	-3	-11
% of net sales	2.0	-2.8	0.7	-0.3	-0.7
Profit/loss before taxes, EUR million	0	-18	-15	-22	-37
Profit/loss for the period, EUR million	-1	19	-10	14	1
Return on equity, %	-0.6	-14.9	-2.7	3.6	0.2
Equity ratio, %	27.7	28.9	27.7	28.9	28.8
Equity ratio, 1)	31.9	36.0	31.9	36.0	35.8
Gross capital expenditure excluding acquisitions, EUR million	8	14	79	40	60
% of net sales	2.2	4.2	7.3	3.7	4.1
Personnel, average	3 005	3 165	3 007	3 303	3 226

1) Capital loans included in equity.

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Myllykoski Corporation Interim Report January-September 2008

ABOUT MYLLYKOSKI

MYLLYKOSKI is a family owned international paper group with manufacturing in Finland, Germany, Switzerland and the United States and sales offices around the world. The Finnish roots of the parent company go back to 1892. MYLLYKOSKI products consist of wood-containing uncoated and coated publication papers, including newsprint. Customers include publishers, printers, and retailers worldwide.

MYLLYKOSKI is among the largest publication paper producers in the world.
MYLLYKOSKI operates nine paper mills with a total annual capacity of 3 million tons, including the alliance partner Rhein Papier GmbH of which Plattling Papier is a part. MYLLYKOSKI employs 3,300 people.

MYLLYKOSKI is known as a pioneer in using new technologies as well as recycled fibres for paper production. All European mills are certified with the environmental management System ISO 14001. MYLLYKOSKI’s vision is to be the premier publication paper brand recognized for creativity and positive business solutions.