UPM Raflatac's labelstock factory to be built in Wroclaw-Kobierzyce

(UPM, Helsinki, June 5, 2007) – UPM Raflatac has received an operations permit to construct its new self-adhesive label materials factory in Kobierzyce, about 10 kilometres from Wroclaw in south-western part of Poland. The EUR 90 million factory investment was announced in April.

The new production and logistics centre will serve the growing eastern European markets and meet increasing demand for filmic label materials and products with hot-melt adhesives European-wide.

Construction of the factory will begin August 2007, and production is scheduled for start-up in the final quarter of 2008.

The new UPM Raflatac factory will feature newest proprietary technology both in coating and finishing. It will supply a wide range of high-quality film and paper labelstock products with water-based acrylic and hot-melt adhesives.

For further information please contact:
Mr Heikki Pikkarainen, President, UPM, Label Division, mobile +358 40 760 5758
Mr Jan-Erik Forsström, Senior Vice President, Europe, UPM Raflatac,
mobile +358 40 502 9412

About UPM
UPM is one of the world’s leading forest products groups. The Group's sales in 2006 were EUR 10 billion (approx. USD 13 billion), and it has about 28,000 employees. UPM's main products include printing papers, label materials and wood products. The company has production plants in 15 countries and its main market areas are Europe and North America. UPM's shares are listed on the Helsinki and New York stock exchanges. www.upm-kymmene.com.

UPM's Label Division, UPM Raflatac, is a world-leading supplier of self-adhesive label materials for a wide variety of needs in product and information labelling. In addition, UPM Raflatac is at the global forefront in the development and high-volume production of HF and UHF radio frequency identification (RFID) tags and inlays. UPM Raflatac has around 2,500 employees and made sales of approximately EUR 1 billion (USD 1.3 billion) in 2006. UPM Raflatac has a global service network consisting of 11 factories on five continents and a broad network of distribution and slitting terminals and sales offices worldwide. Further information is available at www.upmraflatac.com.