Stora Enso's Non-recurring Items in Third Quarter 2007 and New Segment Reporting

Stora Enso's Non-recurring Items in Third Quarter 2007 and New Segment Reporting

October 16, 2007

    HELSINKI, Finland, Oct. 16 /Xinhua-PRNewswire/ -- As
already announced, Stora Enso will record two non-recurring
items (NRI) in its third quarter of 2007 results.  These
non-recurring items will have a total negative net impact
of EUR 550 million on operating profit and a positive tax
impact of EUR 111 million in the third quarter, and will
reduce the depreciation charge by about EUR 50 million on
an annual basis. 

    The non-recurring items affecting operating profit
are:

    -- a non-cash impairment charge of EUR 560 million; 
    -- a positive NRI of EUR 10 million from the sale of
Reisholz Mill site real estate.

    The impairment charges by the new segments are as
follows:


      EUR million                         Fixed Assets   
Goodwill    Total
    Magazine Paper                             118         
 110       228 
    Fine Paper                                  33         
            33 
    Consumer Board                             187         
           187 
    Industrial Packaging                         6         
             6 
    Wood Products                               52         
  54       106 
    Group Total                                396         
 164       560 


    The results of associated companies will be reported as
part of operating profit from the third quarter of 2007
onwards, as these companies are clearly part of the value
chain of operations. Previous quarters have been adjusted
accordingly. The five largest associated companies are:


    Associated Company         Business Area        
Reporting Segment   
     Bergvik                    Wood Supply           Other
              
     Tornator                   Wood Supply           Other
              
     Veracel                    Fine Paper            Fine
Paper          
     Sunila                     Magazine Paper       
Magazine Paper      
     Thiele Kaolin              Other Operations      Other
              

   
    As part of the reorganisation announced on 5 September
2007, the Speciality Paper Business Area was dissolved. 
The speciality paper machine (PM 6) at Imatra Mills in
Finland was transferred to the Consumer Board Business Area
and the speciality paper machine (PM 1) at Utersen Mill in
Germany was transferred to the Fine Paper Business Area.
Before the reorganisation, the Speciality Paper Business
Area was part of the Packaging Board Division.  Previous
quarters have also been adjusted accordingly for these
changes.

    Commencing with the third quarter of 2007, the sales
and operating profit of Wood Supply will be included in
Segment Other and will not be reported separately because
the earnings of this cost centre are relatively
immaterial.

    Stora Enso is an integrated paper, packaging and forest
products company producing publication and fine paper,
packaging board and wood products -- all areas in which the
Group is a global market leader. Stora Enso's sales totalled
EUR 14.6 billion in 2006.  The Group has some 44 000
employees in more than 40 countries on five continents.
Stora Enso has an annual production capacity of 16.5
million tonnes of paper and board and 7.4 million cubic
metres of sawn wood products, including 3.2 million cubic
metres of value-added products.  Stora Enso's shares are
listed in Helsinki, Stockholm and New York.  






    For further information, please contact:

     Hannu Ryopponen, CFO
     Tel:   [phone]

     Keith B Russell, Senior Vice President, 
     Investor Relations
     Tel:   [phone]

     Ulla Paajanen-Sainio, VP, 
     Investor Relations and Financial Communications
     Tel:   [phone]