Paper Industry October 2004 News

Metso Paper and Albany International Reach New Business Accord

Albany, NY, USA 06 October 2004 /PRNewswire-FirstCall via COMTEX/ -- Metso Corporation's (NYSE/MX/HEX: MEO) fiber and technology business area, Metso Paper, and Albany International Corp (NYSE/PSE/FWB: AIN) announced today that they have agreed to strengthen their cooperation in specified areas of paper and board making processes and paper machine clothing. The two companies have been engaged in a technological cooperation for several years and entered into a commercial agreement in 2000. The current agreement replaces the previous agreements.

By expanding the scope of the business, the two companies expect to further take advantage of the complementary aspects of the business and technologies for the two companies. The new arrangement will make it easier for the two companies to offer Albany paper machine clothing and process belts as part of a package with a new Metso machine, a rebuild, or a joint Albany/Metso service contract.

Frank Schmeler, Chairman and CEO of Albany International, commented, "We are optimistic that this newly expanded cooperation will bring exceptional value to our global customers. Metso Paper and Albany International continue to deliver world-class technology and applications expertise to paper and paperboard customers."

Metso Paper President Bertel Karlstedt further commented, "By cooperating in mutually beneficial ways with existing opportunities, and working together in the development of future technologies, we believe the customer will receive valuable benefits."

Albany International is the world's largest producer of paper machine clothing with world-class facilities strategically situated to serve the global paper industry. Metso Paper is the world's leading supplier of technology, systems, equipment, and services for the pulp, paper, and paperboard industries.

Stora Enso to acquire majority interest in Intercell of Poland

Stora Enso Oyj Stock Exchange Release 29 October 2004 at 06:00 GMT

Stora Enso will acquire 66% of the shares in the Polish packaging producer Intercell S.A. from private shareholders and the International Finance Corporation. The acquisition is expected to be closed by the end of 2004, subject to approval by regulatory authorities.

The Polish State Treasury owns the balance of the shares in Intercell. In February 2004 the Polish State Treasury announced its intention of privatising its shareholding in the Company.

The acquisition is part of Stora Enso's strategy of increasing its Packaging Boards operations. The transaction will expand Stora Enso's corrugated packaging business and strengthen its presence in the fast-growing Polish market.

Intercell is one of Poland's biggest corrugated packaging companies, with integrated operations from waste paper collection to corrugated packaging production. The Company has three corrugated packaging plants in Poland, as well as one sack factory in Poland and one in Serbia. Intercell's paper and board mill at Ostroleka, Poland has an annual production capacity of about 250 000 tonnes of containerboard and sack and kraft paper. Its annual corrugated packaging capacity is about 250 million m2. In 2003 Intercell's sales were EUR 150 million, 60% of which was from packaging and 40% from containerboards and paper. Its EBITDA in 2003 was EUR 27 million. The Company employs about 1 700 people. Intercell also operates Poland's largest recycled paper collection business, covering approximately 15% of the business in Poland.

International Finance Corporation, based in Washington D.C., is the private sector investment arm of the World Bank Group. It holds 12.4% of the shares in Intercell.

Wausau Paper Completes Purchase Of Missota Paper

Mosinee, WI, USA 21 October 2004--(BUSINESS WIRE)--Wausau Paper (NYSE:WPP) announced today that it has completed the purchase of the assets of Missota Paper Company, LLC, a specialty manufacturer of high-quality uncoated freesheet paper, for $9.6 million. The assets will become part of the company's Printing & Writing business segment.

The acquisition includes Missota's facility in Brainerd, Minn. The Brainerd mill contains two paper machines and finishing equipment capable of producing approximately 170,000 tons per year of uncoated freesheet paper. Wausau Paper is targeting a mid-November start-up of the mill's largest paper machine, capable of producing up to 90,000 tons per year of premium printing and writing paper. No timetable has been established for the start-up of Brainerd's second paper machine.

"We are committed to putting Wausau Paper on a growth track and will continue to target higher-margin niche and emerging markets," said Thomas J. Howatt, president and CEO. "The Brainerd acquisition is consistent with that strategy, bringing with it the capability and scale to expand our sales of higher-margin premium printing and writing papers."

Wausau Paper produces fine printing and writing papers, technical specialty papers, and "away-from-home" towel and tissue products.

Safe Harbor under the Private Securities Litigation Reform Act of 1995: The matters discussed in this news release concerning the Company's future performance or anticipated financial results are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements. Among other things, these risks and uncertainties include the strength of the economy and demand for paper products, increases in raw material and energy prices, manufacturing problems at Company facilities, and other risks and assumptions described in Item 1 of the Company's Form 10-K for the year ended December 31, 2003. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.