Raflatac’s Year 2000 Project

This document is being distributed in compliance with the Year 2000 Information and Readiness Disclosure Act. Please be advised that this document also constitutes a reclassification of the company's prior statements as may be neccessary to qualify those statements as Year 2000 Readiness Disclosures.

A specially appointed UPM-Kymmene Year 2000 and EMU Committee carries the overall responsibility for the project. IT matters are coordinated by the IT Board. Raflatac’s Year 2000 project is controlled by Raflatac’s Management Board and monitored by UPM-Kymmene’s Year 2000 and EMU Committee. Raflatac’s own project organization reports to the UPM-Kymmene Group and to Raflatac’s boards and, internally, in accordance with Raflatac’s normal instructions and plans.

Raflatac has already concentrated on internal awareness, surveying, remediation, training, and implementation of Year 2000 solutions and is currently refining contingency procedures. Raflatac intends to continually review the development and testing of all systems and contingency strategies until the Year 2000 period of risk is passed through safely.

Task areas
The project has been approached from a number of different perspectives to make it as comprehensive as possible. The project’s scope includes all auxiliary services and systems directly serving the company’s business and its management. The project also includes infrastructure, which is independent of the business as such, but may cause indirect disturbances.

The main task areas are:

Business processes and IT systems serving these processes, such as the purchasing process, delivery process, administrative functions and other supporting functions as well as process automation systems related to business operations.

IT systems and their application software, such as user interfaces, standard reports and report generators, interfaces between systems, other internal group-interfaces and interfaces with external cooperation partners outside the group, data base and file definitions and date processing in application software

IT and other infrastructure covering the technical infrastructure used by the company and its various units, including process/mill automation, information technology, office technology and its basic infrastructure.

External co-operation partners, including that our suppliers of goods and services have prepared themselves for the new millennium so we can rely on continued deliveries without disturbance, that equipment and services involving the use of a date are fully Year 2000 compliant, and that the changes in data interchange procedures with external parties are implemented in a compatible manner and according to a coordinated time schedule.

Goals of Raflatac's project, to :-

When will Raflatac be ready for the Year 2000?

We believe that Raflatac’s core processes have been ready for the Year 2000 since August, 1999. The Year 2000 project itself will continue to review and refine all actions and plans until we have passed through all of the critical Year 2000 periods, but this shall not be construed to be a guarantee or warranty of any kind.

Resources and risk management
The necessary personnel resources (internal and external) and funds etc. have been budgeted. The project has been assigned a high priority throughout the company.

The business risks involved have been assessed. The project is also regarded as a part of Raflatac’s and UPM-Kymmene’s risk management.

Additional contingency plans for critical functions will be created where considered necessary.

References
The project plan has been based on information contained within the publication "A Definition of Year 2000 Conformity Requirements" by the British Standards Institution.

Testing procedures are based on the publication "Year 2000 Computer Problems: Testing Instructions", by the United States General Accounting Office.

Statement
Raflatac believes that the project will successfully deal with any identified Year 2000 related risks and does not anticipate any interruptions in its service or operation due to the Year 2000. However, due for example to reliance on external issues beyond its control, Raflatac is unable to guarantee or offer any warranty that any service or product will be totally free from Year 2000 issues.

This statement supersedes all previous statements issued by Raflatac concerning the Year 2000.