SOURCE: Stora Enso Oyj

January 18, 2007 07:16 ET

Stora Enso's non-recurring items in fourth quarter 2006

HELSINKI, FINLAND -- (MARKET WIRE) -- January 18, 2007 -- Stora Enso Oyj News Release January 18, 2007 at 12.00 GMT


HELSINKI, Finland - Stora Enso (NYSE: SEO) today announced that it will record the following non-recurring items in its fourth quarter 2006 results:

--  positive impacts of EUR 30 million on operating profit and EUR 102
    million on taxes from provisions released due to the settlement of tax
    cases;
--  a capital gain of EUR 33 million from the sale of Finnlines Oyj shares
    affecting net financial items, as announced on 30 November 2006;
--  a positive impact of EUR 30 million on operating profit from a
    decrease in pension expenses due to a change in the Group's accounting
    policy with respect to the recognition of actuarial gains and losses
    arising from defined benefit pension plans.
    
The non-recurring items affecting operating profit and net financial items, totalling EUR 93 million, will have a tax effect of EUR 32 million.

Change in accounting policy Stora Enso has changed its accounting policy with respect to the recognition of actuarial gains and losses arising from defined benefit pension plans. This change in policy is in accordance with "Amendment to IAS 19 Employee Benefits - Actuarial Gains and Losses, Group Plans and Disclosures".

The Group now recognises all actuarial gains and losses arising from defined benefit plans directly in equity. In its financial statements for the periods beginning before 1 January 2006, the Group applied the 'corridor method' to recognise in profit or loss actuarial gains and losses over the expected average remaining working lives of employees in the plan.

By adopting this amendment the Group balance sheet fully reflects the actual surplus or deficit in its Defined Benefit Plans and thereby aligning the net position on the Balance Sheet with the actual liability in the Plans. The change follows also the similar changes in US GAAP released in 2006.

For more information, please contact:
Hannu Ryöppönen, CFO, tel. +44 20 7016 3114
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659
Tim Laatsch, Senior Vice President, Communications, Stora Enso North
America,
tel. 715 422 4023
www.storaenso.com





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