UPM-Kymmene’s MACtac acquisition was rejected in the United States

Consequently, UPM-Kymmene will terminate its agreement with Bemis Company on the transaction. UPM-Kymmene does not plan to appeal on the court decision.

"Naturally, we are surprised and disappointed by the court decision. Because the appeal process' duration and cost would be difficult to predict and would be a distraction to the business' continuing development, Raflatac will now actively seek other opportunities to strengthen its market position," says Pentti Kallio, President of Raflatac Group.

UPM-Kymmene has booked EUR 41 million as costs of the MACtac acquisition for the first half of 2003. The remaining costs will be booked for the third quarter of the year.

On April 15, 2003 UPM-Kymmene received notice that the Antitrust Division of the U.S. Department of Justice had filed a civil antitrust lawsuit to block the acquisition. The EU Commission and the Canadian competition authorities had approved the transaction, which was agreed on by the two companies in August 2002.

Notes to the editors:
The complete ruling by the court can be obtained at
http://www.ilnd.uscourts.gov/RACER2/recent_opinions.cfm?judge=Zagel

For further information please contact:
Mr Pentti Kallio, President of Raflatac Group, tel. +358 400 437 833
Mr Olavi Kauppila, Senior Vice President, Investor Relations, UPM-Kymmene, tel. +358 40 700 3721

UPM-Kymmene Corporation
Corporate Communications
July 26, 2003