Stora Enso has today signed a memorandum of understanding with the United Nations Development Programme (UNDP) to address the key findings of the environmental and social impact assessment of Stora Enso's plantations in Guangxi Province, China. During a five-year period, Stora Enso and UNDP will co-operate to conserve biodiversity in Guangxi and to improve community well-being. The results of the environmental and social impact assessment, which is not yet a common practice for plantation projects in China, were also publicised at the signing ceremony.

According to the results of the study, there are no major environmental or social issues that could jeopardise Stora Enso's plantation project in Guangxi. Environmental impacts identified in the study will be managed with Stora Enso's good plantation management practices. In the social dimension, Stora Enso aims to continue and strengthen the engagement with local landholders and communities.

"Based on our experience, we firmly believe that this type of study has to be carried out in co-operation with a reliable partner to provide a transparent process where the results are published and is in line with our financial goals", commented CFO Hannu Ryöppönen, present at the signing ceremony. "It increases the credibility of the project and it helps Stora Enso win the acceptance of stakeholders".

For further information, please contact: Kari Tuomela, President, Guangxi Stora Enso Forestry, tel. +86 771 553 5661 Markku Pentikäinen, Executive Vice President, Stora Enso Asia Pacific, tel. +86 1376 430 0175 Eija Pitkänen, Vice President, Sustainability Communications and CSR, tel. +358 2046 21348 Kari Vainio, Executive Vice President, Corporate Communications, tel. +44 7799 348 197

www.storaenso.com www.storaenso.com/sustainability

Previous press releases concerning Stora Enso's plantations in Guangxi Province, China can be found at www.storaenso.com/press - 10 November 2005, Stora Enso strengthens its presence in Guangxi - 10 June 2005, Stora Enso signs loan agreement with International Financing Corporation - 31 March 2005, UNDP to Assess Environmental and Social Impact of a Forestry Investment Project in Guangxi, China