Finnforest Acquires The Ilevel European Engineered Wood Products Business Of Weyerhaeuser

Espoo, Finland, Jan 14, 2008 - (Hugin via ABN Newswire) - To strengthen the growth of its building solutions business Finnforest has agreed to acquire the iLevel European engineered wood products business from Weyerhaeuser Company, based in the U.S., one of the world's largest forest products groups. The business acquisition includes iLevel European sales, distribution and technical support.

"iLevel's European engineered wood products business is an excellent fit with our own Building Solutions business and gives us a great opportunity to develop our customer service and grow our business especially in the UK, France and Germany," says Mika Kallio, Head of Building Solutions, Finnforest.

"Weyerhaeuser has decided to focus its resources on the North American residential wood products market. Although this business is profitable with a strong customer base, we believe it is a more valuable asset for Finnforest whose focus is in Europe," says Hardy Wentzel, Vice President of iLevel Sales for Europe and Canada.

"The building codes are currently being harmonised across Europe through the eurocode system. Also, due to the tightening energy requirements, there is a growing demand everywhere in Europe for the technically advanced engineered wood products, such as I-joists. Bringing together the two leading brands in bearing structures and achieving thus stronger European wide product development, the deal will benefit all builders in Europe," says Mika Kallio.

Finnforest is one of the leading suppliers of load-bearing structural solutions to the European building sector. The solutions and services it offers include Finnforest Kerto® based Finnjoist load-bearing solutions, supported with the market leading design software and forward thinking customer service and technical support.

Currently produced in the United States, the iLevel product range will, over a period of time, be phased out of the European markets being replaced by Finnforest's products and services.

The employees of the iLevel European engineered wood products business, approximately 30 persons, will be employed by Finnforest.

Finnforest represents the Wood Products Industry within the Metsäliitto Group, based in Finland. With sales totalling about 8.5 billion euros and employees of about 21 000, Metsäliitto is the eighth largest forest industry group in the world.

Weyerhaeuser is one of the largest forest products groups in the world. Its sales are about 15 billion euros and it employes 36 000 people.

For further information, please contact:

UK market: Emmie Peryer or Joanne Curtis at CIB Communications, tel. 01372 371800

European market: Mika Kallio, head of Building Solutions, tel. +358 40 567 4254. Johanna Kankkunen, head of marketing and communications services, tel. +358 50 350 4005

Related photo: http://databank.metsaliitto.com/metsaliitto/finnforest.jsp?x=6046495&i=226407915615612577142178815789204979154

Finnforest is a solutions provider offering products and services to targeted customer segments, such as building and construction, transport vehicle industry, other industrial customers as well as building material and DIY chains. Sales are 1.3 billion euros and we employ 4 400 people in 20 countries. www.finnforest.com

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Metsäliitto-konserni

http://www.metsaliitto.com/main.asp

ISIN: FI0002001611

Stock Identifier: XHEL.MEL