THE ROTTNEROS GROUP

INTERIM REPORT JANUARY-MARCH 2008

QUARTERLY REPORT JANUARY-MARCH 2008

Amounts in SEK except per-share data.

		2008	2007
Net turnover, SEK m	Jan - Mar	748	740
Income after net financial items, SEK m	Jan - Mar	-122	14
Earnings per share after net financial items, SEK	Jan - Mar	-0,68	0,08
Profit/loss after tax, SEK m	Jan - Mar	-89	5
Earnings per share after tax, SEK	Jan - Mar	-0,49	0,03
Cash flow per share, SEK	Jan - Mar	0,19	0,15
Shareholders' equity per share, SEK		5,31	5,83	(31.12.2007)
Equity/assets ratio		41 %	45 %	(31.12.2007)

After provision for close-down expenses of SEK 90 million at Utansjö Mill, the Group is posting a loss after net financial items of SEK -122 (14) million for the first quarter.
On 9 January 2008 it was announced that Rottneros' Board of Directors has asked the Group's CEO to conclude negotiations with the relevant trade unions concerning implementation of the previously agreed closure of Utansjö Mill. The intention is for production at the mill to cease during May 2008.
Higher costs for wood have reduced earnings in the first quarter by SEK 72 million compared with 2007.
After completing its main study, Rottneros has decided to go ahead with plans to establish a presence in South Africa. The Board has asked the CEO to conclude negotiations on and sign the necessary agreements. The supply of electricity is uncertain.
Ole Terland took up the position of CEO and President on 1 February 2008.
The company is not providing a forecast for the full year 2008.

THIS IS ROTTNEROS

Rottneros, with origins dating back to the 1600s, is a non-integrated, flexible supplier of customised, high-quality paper pulp. Through continuous product development, high delivery reliability, technical support and service, Rottneros is able to adapt to the changing requirements of discerning customers.

Rottneros has a total annual production capacity of some 700,000 tonnes of pulp, produced at five mills in Sweden and Spain, making the Group one of the ten largest suppliers of market pulp in the world. The company works to achieve a more stable and higher level of profitability over the course of the economic cycle through increasingly intensive product development in line with customer demands. The Group has introduced a comprehensive financial hedging policy to even out cyclical fluctuations in earnings.

THE PULP MARKET

Market and products

The market for all grades of pulp has continued to perform well at the start of 2008, with rising prices. Deliveries in the first two months of 2008 for that part of the total global market for bleached chemical market pulp that reports statistics (19 countries) were 6.5 (6.2) million tonnes, an increase of 8.1 % or 489,000 tonnes on 2007. Delivery capacity utilisation for bleached chemical pulp in the January-February period was 91 % (91 % for the equivalent period of 2007). Production capacity utilisation for the same period was 98 % (96 %).

The average price of bleached long-fibre chemical pulp in the first quarter of 2008 was USD 878 per tonne (USD 752), an increase of 17 %. The price of long-fibre chemical pulp (NBSK) at the end of the quarter was USD 880 per tonne. The price of short-fibre chemical pulp increased from around USD 780 at the beginning of the year to USD 800 per tonne at the end of the period. With effect from 1 April, further price increases of USD 40 per tonne have been announced for all grades of pulp.

Global producer stocks of bleached chemical pulp were 3,201,000 tonnes at the beginning of the year, and 3,668,000 tonnes at the end of February.

Long-fibre chemical pulp (NBSK) (produced in Vallvik)

The price at the beginning of the year was USD 880 per tonne, and has been raised by a further USD 40 per tonne in the second quarter. The positive development in the market for long-fibre chemical pulp has continued, with supply and demand currently in equilibrium.

Delivery capacity utilisation on the market for the January-February period was 92 % (96 % for the equivalent period of 2007), and production capacity utilisation for the same period was 98 % (97 %).

Short-fibre chemical pulp (produced in Miranda)

The price of eucalyptus pulp (BEK) was raised during the quarter from USD 780 to USD 800 per tonne. The positive price trend continues and, with effect from April, the price has been raised by a further USD 40 per tonne to USD 840 per tonne.

Delivery capacity utilisation for the January-February period was 89 % (85 % for the equivalent period of 2007), and production capacity utilisation for the same period was 97 % (95 %).

Mechanical pulp and CTMP (produced in Rottneros, Rockhammar and Utansjö)

During the quarter, prices for short-fibre CTMP were raised in line with the price for short-fibre chemical pulp, with a slightly better price trend for long-fibre CTMP. The period has been characterised by both good demand and high production. Delivery capacity utilisation for the January-February period was 102 % (96 % for the equivalent period of 2007), and production capacity utilisation was 101 % (92 %).

Development of PIX price in SEK

PRODUCTION AND DELIVERIES

The Group's five mills in Rottneros, Rockhammar, Utansjö and Vallvik in Sweden, and Miranda in Spain, have a combined production capacity of just over 700,000 tonnes per year. Total production in 2007 was 730,000 tonnes. Production in the first quarter of 2008 was 184,300 (176,100) tonnes, an increase of 5 %. The closure of Utansjö will reduce the Group's annual production capacity by around 160,000 tonnes. Annual maintenance shutdowns will be implemented in Vallvik and Rottneros during the third quarter, and in Miranda during the fourth quarter. All costs relating to maintenance shutdowns are recognised in the period in which the shutdown takes place.

Deliveries in the first quarter of 2008 totalled 176,100 (182,900) tonnes, down 6,800 tonnes from 2007.

PRODUCTION (TONNES)	Jan - Mar 2008	Jan - Mar 2007
Sulphate pulp	89 800	85 500
Groundwood pulp	37 800	39 100
CTMP	56 700	51 500
TOTAL	184 300	176 100

DELIVERIES (TONNES)	Jan - Mar 2008	Jan - Mar 2007
Sulphate pulp	83 900	85 500
Groundwood pulp	34 000	36 300
CTMP	58 200	61 100
TOTAL	176 100	182 900

INVOICED SALES AND RESULTS

January-March 2008 compared with January-March 2007

The Group generated a net turnover of SEK 748 million (740). As Rottneros Packaging is still in a build-up phase, results for this business area are not reported separately.

Sales for the period were SEK 8 million up on the previous year, mainly due to: lower delivery levels, SEK -27 million; a weaker USD, SEK -86 million; higher USD pulp prices, SEK 108 million; and other changes, SEK 13 million. The average price in USD of long-fibre sulphate pulp (NBSK) increased from USD 752 to USD 878 per tonne, while the average price of NBSK pulp converted into SEK increased from SEK 5,268 to SEK 5,514 per tonne, an increase of 5 %. The average price in USD of eucalyptus pulp (BEK) increased from USD 671 to USD 790 per tonne, or 18 %, while the corresponding average price converted into SEK increased from SEK 4,704 to SEK 4,963 per tonne, an increase of just under 6 %.

The result includes provision for close-down expenses of SEK 90 million at Utansjö Mill. On 9 January it was announced that Rottneros' Board of Directors has asked the Group's CEO to conclude negotiations with the relevant trade unions concerning implementation of the previously agreed closure of Utansjö Mill. Production at the mill will cease during May 2008. In total the closure will affect around 140 employees.

The close-down will net have a substantial positive effect on cash flow for the Rottneros Group as a result of freeing up working capital.

The majority of the loss for the quarter can be attributed to the Group's operations in Utansjö. Utansjö Mill's operating loss for the quarter after financial items was SEK -105 million, including close-down expenses.

The price increases for pulp in USD have largely been countered by the falling US dollar and, taken as a whole, the price increase converted into EUR and SEK is not sufficient to compensate for higher raw material prices. The Group's results are also encumbered by exchange rate differences, which totalled SEK -11 million (1) for the first quarter.

The average price of electricity for the quarter on the Nord Pool exchange was SEK 0.37 per kWh, compared with SEK 0.25 per kWh in the same period of 2007. For 2009 and beyond, electricity is currently being traded on Nord Pool at prices around SEK 0.50 per kWh.

The supply of wood during the period functioned well, although the price level for pulp wood remains high. Overall, wood costs increased by SEK 72 million compared with the equivalent period of 2007.

The Group is posting an operating loss for the period of SEK -110 million (22), including provision for close-down expenses at Utansjö Mill of SEK 90 million.

The close-down expenses of SEK 90 million for Utansjö Mill and increased wood costs of SEK 72 million have had the biggest impact on earnings for 2008, compared with last year. Electricity costs, including the effect of electricity hedges, increased by SEK 5 million during the quarter compared with the equivalent period of 2007. Hedging transactions during the quarter resulted in a net loss of SEK -14 million (-19).

The Group is posting a loss after net financial items of SEK -122 million (14), including a net financial expense of SEK -12 million (-8). The loss after tax was SEK -89 million (5). Earnings per share after tax were SEK -0.49 (0.03). Cash flow per share was SEK 0.19 (0.15).

January-March 2008 compared with October-December 2007

The Group generated a net turnover of SEK 748 million (721).

Sales for the quarter were SEK 27 million up on 2007, mainly due to: higher delivery levels, SEK 8 million; a weaker US dollar, SEK -17 million; higher USD pulp prices, SEK 30 million; and other changes, SEK 6 million. The average price in USD of long-fibre sulphate pulp (NBSK) increased from USD 844 to USD 878 per tonne, while the average price of NBSK pulp converted into SEK increased from SEK 5,417 to SEK 5,514 per tonne, an improvement of 2 %. The average price in USD of eucalyptus pulp (BEK) increased from USD 751 to USD 790 per tonne, or 5 %, while the corresponding average price converted into SEK increased from SEK 4,817 to SEK 4,963 per tonne, a smaller increase of 3 %.

The Group is posting an operating loss of SEK -110 million (-311), with the first quarter of 2008 including close-down expenses of SEK 90 million for Utansjö Mill and the fourth quarter of 2007 including a writedown of the fixed assets at Utansjö of SEK 284 million.

Increased wood costs of SEK 12 million have had the biggest impact on earnings for the quarter compared with the fourth quarter of 2007. Electricity costs, including hedging, have fallen by SEK 5 million during the quarter. Hedging transactions during the quarter resulted in a net loss of SEK -14 million (15).

The Group is posting a loss after net financial items of SEK -122 million (-321), including a net financial expense of SEK -12 million (-10). The loss after tax was SEK -89 million (-250). Earnings per share after tax were SEK -0.49 (-1.39). Cash flow per share was SEK 0.19 (-0.77).

	2008			2007
	I	IV	III	II		I Full year
Profit/loss after financial items	-122	-322	-81	5	14	-384

Whereof:
Currency hedges	6	25	6	2	6	39
Pulp price hedges	-22	-20	-16	-15	-12	-63
Electricity hedges	2	10	-22	-19	-14	-45
Total hedges	-14	15	-32	-32	-20	-69
IAS 39	-12	-3	-	15	-2	10
Green electricity	11	6	4	6	6	22

PARENT COMPANY

The loss after financial items for the first quarter of 2008 in the parent company was SEK - 34 million (-23). All pulp invoicing in the Group has been centralised in the parent company. The parent company acts as distributor for all the mills, for which it is paid sales commission at normal rates. The notes relating to Group sales therefore also apply to sales in the parent company. The

result includes a loss of SEK -14 million (-20) relating to hedging transactions for the entire Group. The parent company's operations include Rottneros Packaging; this entails a cost burden, as the business area is in a start-up phase. Costs relating to the South Africa project are also included in the parent company's results.

The parent company's balance sheet and income statement are found on page 13.

ROTTNEROS PACKAGING

In 2006 Rottneros started producing packaging made from paper pulp for chilled and frozen ready meals under the SilviPak brand. This venture, which is run as a new business area called Rottneros Packaging, is expected to account for around 15 % of Group sales within a five-year period and capture around 5 % of the European market. As the business is still in a build-up phase, results for this business area are not reported separately.

The Board of Directors has decided to increase SilviPak's production capacity by investing in a new factory for the production of packaging adjacent to the pulp mill in Miranda, Spain. This is an investment of SEK 50 million and the factory is expected to go into operation in the second quarter of 2008.

The intention is to convert the Swedish business into an independent subsidiary company on 1 July 2008, under the name Rottneros Packaging AB.

THE SOUTH AFRICA PROJECT

In March 2007 Rottneros and the South African forestry company NCT signed a declaration of intent to look into the opportunities for building a jointly owned factory to produce mechanical paper pulp of CTMP grade in South Africa. The idea is for the fixed assets in Utansjö, which include a new pulp line for the production of CTMP pulp, to be used as the basis for the new establishment in South Africa.

After completing its main study, Rottneros has decided to go ahead with plans to establish a presence in South Africa. The Board has asked the CEO to conclude negotiations on and sign the necessary agreements, mainly concerning electricity supply and funding. For the moment the supply of electricity for the project is uncertain.

Essentially, the structure of the agreements means that Rottneros will undertake to build and equip a factory with a production capacity of 165,000 tonnes for the production of CTMP pulp based on eucalyptus wood. The CTMP facility in Utansjö will form the basis for the new factory. The investment will be project-financed via the jointly owned company. A new factory could be ready to go into operation at the end of 2009. The pulp, which is initially intended to be exported to South East Asia and Europe, will be sold through Rottneros' marketing organisation. NCT will be responsible for delivery of wood. Rottneros will acquire a proportion of an associated company that has prospects of achieving good profitability and represents a strategic investment.

ACCOUNTING PRINCIPLES

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, while the parent company's financial statements have been prepared in accordance with Recommendation RR 32 of the Swedish Financial Accounting Standards Council. The accounting principles are the same as those used in preparing the most recent annual financial statements. A detailed description of the Group's accounting principles is given in Rottneros' Annual Report 2007, pages 51-54.

RISK MANAGEMENT

Operationally, the company employs a number of measures and strategies, such as focusing on certain niches and specific customer segments, in order to reduce the Group's dependence on the list price of market pulp and minimise fluctuations in profitability over the course of an economic cycle. The establishment of a new business area, Rottneros Packaging, and the company's expansion into a new stage in the value chain is another step in the process of reducing the Group's unilateral dependence on fluctuations in the pulp market. As a complement to its operational strategy, the Group also has a strategy for dealing with financial risk. By employing advanced methods of managing financial risks, Rottneros seeks to stabilise the Group's volatile earnings trend and, above all, create a stable foundation to avoid loss-making periods. The risks that have the greatest impact on consolidated earnings are associated with exchange rates, pulp prices, wood and electricity.

USD

Most of the real flow in USD, which is estimated at around 40 % of the total inflow, is hedged. Although Rottneros invoices in different currencies, the underlying currency for pulp prices is largely USD. This means that the underlying exposure to USD is very high, but the direct inflow of USD (the real flow) only corresponds to around 40 % of sales. The portion of sales contracted in EUR, about 10 %, has been hedged for 2008.

The average USD exchange rate in the first quarter of 2008 was 10 % lower than in 2007, averaging 6.28 against 7.01. The lower average USD rate against SEK during the period had a negative impact on turnover of SEK -86 million compared with the same period of 2007.

At the end of March, currency hedging in the form of forward contracts for USD 17 million had been concluded, at an average rate of SEK 6.03 per USD. These contracts relate to 2008. At the end of the quarter, hedging contracts for EUR 18 million had also been concluded at an average rate of EUR 9.27 per SEK for deliveries in 2008.

Pulp prices

The price of pulp (NBSK) is set in USD, while production costs are largely incurred in local currencies. Pulp price forward contracts for two-year and three-year periods have been signed for an original total volume of 168,000 tonnes, maturing from the beginning of the fourth quarter of 2006 onwards. The hedges represent 5,000 tonnes per month in 2008 and 4,000 tonnes per month in 2009, and expire in September 2009. The level of hedging is USD 636 per tonne.

Electricity

For 2008 around 20 % of the Group's electricity consumption has been hedged at SEK 0.27 per kWh and for 2009 13 % has been hedged at SEK 0.25 per kWh. The average price of electricity for 2007 on the Nord Pool exchange was around SEK 0.25 per kWh and for the first quarter of 2008 SEK 0.37 per kWh.

For further information on risk, see the Annual Report 2007, pages 33-36.

The table below shows the market value of all hedging contracts. The amounts are assessed by independent parties and represent the liquidation value, i.e. the value according to forward contracts as at 31 March 2008. The reference value is the spot rate on 31 March and is provided as supplementary information. The hedge contracts have a term of one to three years. As a result of the application of IFRS/IAS, these market values are reflected in the balance sheet and, in some cases, in the income statement, but are also shown here as supplementary information.

8 (13)

MARKET VALUE (SEK	million) MARCH	2008:
Hedging	Hedged volume	Hedge price		Market value	Reference - spot rate
					31 March 2008
Currency, USD, forward	USD 17 m	6,03	SEK/USD	-1	5,95 SEK/USD
Currency, EUR	EUR 18 m	9,27	SEK/EUR	-2	9,37 SEK/EUR
Pulp price	81 000 tonnes	636	USD (PIX)	-123	USD 880/5,95 SEK/USD
Electricity	116 400 MWh	SEK 0.263	/kWh	19	SEK 0.347/kWh
Total market value				-107

MARKET VALUE (SEK	million) MARCH	2007:
Hedging	Hedged volume	Hedge price		Market value	Reference - spot rate
					31 March 2007
Currency, USD, forward	USD 10 m	7,05	SEK/USD	1	7,00 SEK/USD
Currency, EUR, forward	EUR 45 m	9,28	USD/EUR	-2	9,34 SEK/EUR
Pulp price, in SEK	141 000 tonnes	634	USD (PIX)	-98	USD 730/7,00 SEK/USD
Electricity	641 400 MWh	SEK 0.313	/kWh	-10	SEK 0.210/kWh

SALE OF TREASURY SHARES

The 2007 Annual General Meeting authorised the Board, in the period until the next AGM, to take decisions regarding the transfer of shares in the company. No such transfer has taken place during the period.

INVESTMENTS AND FINANCIAL POSITION

The Group's investments in fixed assets in the quarter were SEK 45 million (29).

Total market value -109

The majority of the investments relates to a new packaging factory in Miranda, Spain.

The Group's liquid funds at the end of the first quarter were SEK 125 million, compared with SEK 121 million at year-end 2007. At 31 March 2008, the company had interest-bearing liabilities of SEK 662 million (474) and net borrowing of SEK 537 million (324). Approved but unutilised lines of credit totalled SEK 196 million. The equity/assets ratio was 41 %, compared with 55 % in 2007. Shareholders' equity per share was SEK 5.31 (5.83 at year-end 2007).

CASH FLOW

Cash flow from operations before investments was SEK -12 million (57). The figure includes cash flow from financial hedging of SEK -17 million (-17). The cash flow after investments was SEK - 57 million (28). Investments were financed by cash flow from operations.

AVERAGE NUMBER OF EMPLOYEES

The average number of employees during the reporting period was 710 (746).

OUTLOOK FOR 2008

Price increases were implemented during the first quarter of 2008, raising the price for short-fibre chemical pulp (BHKP) from USD 780 to USD 800 per tonne. Further price increases of USD 40 per tonne for all grades of pulp have been announced with effect from 1 April. The price trend in USD has, however, had a smaller effect on the price of pulp in SEK as a result of the falling US dollar and, overall, the price increases have not been sufficient to compensate for higher raw material costs. In terms of inputs, the high price of wood is expected to continue. The price of electricity in the first quarter was slightly lower than the fourth quarter of 2007 but just over SEK 0.10 higher than the equivalent period of 2007.

The company expects the equilibrium in the pulp market to remain favourable. Additional shortfibre pulp will become available in 2008 thanks to new production capacity, primarily in South America. However, the closures announced in 2007 and at the beginning of 2008 must also be taken into account.

The company is not providing a forecast for the full year 2008.

UPCOMING FINANCIAL INFORMATION

25 July 2008	- Interim report (6 months) 2008
24 October 2008	- Interim report (9 months) 2008
3 February 2009	- Year-end release for 2008

For further information, please visit Rottneros' updated website: www.rottneros.com.

Upplands Väsby, 24 April 2008

Ole Terland President and Chief Executive Officer

Ole Terland and Karl Ove Grönqvist will be available on telephone number +46 565 166 64 between 08:00 and 09:00 on 24 April.

Meeting for analysts and journalists

Analysts and journalists are invited to a meeting at 10:00 on 25 April at Hallvarsson & Halvarsson, Birger Jarlsgatan 6B, tel. +46 8 407 20 00. Please register with Camilla Nilsson, tel. +46 8 407 22 22, e-mail: [email protected]

Rottneros AB (publ), org. no. 556013-5872, Box 600, 194 26 Upplands Väsby, Sweden. Tel. +46 8 590 010 00, fax +46 8 590 010 01. www.rottneros.com

	Jan - Mar	Jan - Mar	Full year
	2008	2007	2007

Net turnover	748	740	2 927
Change in inventories, finished goods	40	-6	84
Other income	-4	16	57
Total income	784	750	3 068
Raw materials and consumables	-506	-431	-1 859
Other costs	-203	-162	-718
Personnel costs	-156	-97	-415
Depreciation	-29	-38	-436
Total operating costs	-894	-728	-3 428
Operating income	-110	22	-360
Financial income	1	-	9
Financial expenses	-13	-8	-33
Net financial items	-12	-8	-24
Income after net financial items	-122	14	-384
Taxon income for the year	33	-9	83
Net profit/loss after tax	-89	5	-301
1) No. of shares at beginning of period	180 212	180 212	180 212
1) No. of company's own shares bought back	-	-	-
1) No. of shares at end of period	180 212	180 212	180 212
1) Average no. of shares	180 212	180 212	180 212
2) Earnings after tax/share (SEK)	-0,49	0,03	-1,67
Key indicators that affect turnover
3) Pulp price NBSK, USD	878	752	794
4) USD/SEK	6,28	7,01	6,76
Pulp price NBSK, SEK	5 514	5 268	5 368

Rottneros' deliveries, tonnes 176 100 182 900 714 700

CONSOLIDATED PROFIT/LOSS ACCOUNTS (SEK million)

1) The number of shares is given in thousands.

2) There are no programs that lead to dilution.

3) Source: PIX/Market Pulse.

4) Source: Swedich central bank yearly average.

CONSOLIDATED BALANCESHEET (SEK million)

	Mar 2008	Mar 2007	Dec 2007
Intangible fixed assets	33	33	22
Tangible fixed assets	1 018	1 282	1 015
Financial fixed assets	118	41	86
Total fixadassets	1 169	1 356	1 123
Inventories	534	390	493
Current receivables	512	571	572
Liquid funds	125	150	121
Total current assets	1 171	1 111	1 186
Total assets	2 340	2 467	2 309
Shareholders' equity	956	1 363	1 050
Longterm liabilities
Interest-bearing	172	176	173
Non interest-bearing	51	82	49
Total longterm liabilities	223	258	222
Current liabilities
Interest-bearing	490	298	452
Non interest-bearing	671	548	585
Total current liabilities	1 161	846	1 037
Total shareholders' equity andliabilities	2 340	2 467	2 309

CASH-FLOW ANALYSIS (SEK million)

	Jan - Mar 2008		Jan - Mar 2007 Jan - Dec 2007
Operating income	-110	22	-360
Adjustment for non cash-flowitems
Depreciation	29	38	436
Profit/loss fromdisposal of fixed assets	-	-	16
Other non cash-flow items	94	-	-
	13	60	92
Paid financial items	-13	-9	-28
Paid taxes	-3	-3	-5
Cash-flowfrom current operations before change in working capital	-3	48	59
Change in working capital	-9	9	4
Cash-flowfrom current operations	-12	57	63
Acquisition of fixed assets	-45	-29	-163
Cash-flowfrom capital investments	-45	-29	-163
New loans	59	-	119
Repayment of loans	-	-2	-4
Dividend paid	-	-	-18
Cash-flowfrom financing	59	-2	97
Cash-flowfor the period/year	2	26	-3
Liquid funds at beginning of year	121	122	122
Cash-flow for the period/year	2	26	-3
Translation difference in liquid funds	2	2	2
Liquid funds at end of period/year	125	150	121

SHAREDATA 1), 5)

		Mar 2008	Mar 2007	2007	2006	2005	2004	2003
2) No. of shares at beginning of period	No.	180 212	180 212	180 212	180 212	180 212	180 722	182 980
No. of company's own shares bought
2) back	No.	-	-	-	-	-	-510	-2 258
2) No. of shares at end of period	No.	180 212	180 212	180 212	180 212	180 212	180 212	180 722
2) Average number of shares	No.	180 212	180 212	180 212	180 212	180 212	180 392	181 422
Operating profit or loss/share	SEK	-0,61	1,12	-2,00	-0,04	-0,50	-0,64	0,67
Earnings after net financial items/share	SEK	-0,68	0,08	-2,13	-0,13	-0,57	-0,67	0,64
Earnings after tax/share	SEK	-0,49	0,03	-1,67	-0,05	-0,35	-0,50	0,47
3) Operating cash-flow/share	SEK	0,19	0,15	-0,56	0,19	-2,28	-0,41	-0,23
Equity/share	SEK	5,31	7,56	5,83	7,78	8,45	9,28	9,50
Dividend	SEK	-	-	0,00	0,10	0,10	0,20	0,30
Dividend/equity per share	%	-	-	-	1,3	1,2	2,2	3,2
Share price at end of period	SEK	1,70	6,05	2,31	6,55	6,80	7,55	8,55
Share price/equity per share	Times	0,3	0,8	0,4	0,8	0,8	0,8	0,9
P/E ratio	Times	-	-	Neg	Neg	Neg	Neg	18,3
4) Direct yield	%	-	-	-	1,5	1,4	2,6	3,5

1) There are no programs that lead to dilution.

2) The number of shares is given in thousands.

3) Cash-flow after normal investments but excluding strategic investments.

4) Direct yield is calculated in relation to the closing listed price.

5) Year 2003 has not been recalculated in respect of the IFRS transition. Adjustment should be made for IAS 39.

CHANGEIN SHAREHOLDERS' EQUITY(SEK million)

	March	March	Full year
	2008	2007	2007
Opening shareholders' equity	1 050	1 403	1 403
Adjustment of opening shareholders' equity in respect of the
IFRS transition (for specification see enclosure)	-5	-45	-34
Profit/loss for the year	-89	5	-301
Dividend	-	-	-18
Closing shareholders' equity	956	1 363	1 050

QUARTERLYDATA (SEK million)

	2008	2007 2006
	I	IV	III	II	I	IV	III	II	I
Net turnover	748	721	687	779	740	713	662	615	700
Operating profit/loss before depreciation	-81	9	-44	51	60	69	47	36	-4
Depreciation	-29	-320	-38	-40	-38	-42	-36	-38	-39
Operating profit/loss	-110	-311	-82	11	22	27	11	-2	-43
Net financial items	-12	-10	-	-6	-8	-6	-10	-	-
Profit/loss after financial items	-122	-321	-82	5	14	21	1	-2	-43
Tax	33	71	22	-1	-9	3	-2	4	10
Profit/loss after tax	-89	-250	-60	4	5	24	-1	2	-33

Pulp production, 1 000 tonnes	184,3	190,0	177,9	186,1	176,1	181,1	167,8	175,4	174,6
Pulp deliveries, 1 000 tonnes	-176,1	-174,2	-164,5	-193,2	-182,9	-178,9	-168,7	-164,2	-187,7

PARENT COMPANYPROFIT/LOSS ACCOUNTS (SEK million)

	Jan - Mar	Jan - Mar	Full year
	2008	2007	2007

Net turnover	749	735	2 905
Change in inventories, finished goods	-	-	-
Other income	3	37	104
Total income	752	772	3 009
Raw materials and consumables	-738	-741	-2 922
Other costs	-37	-46	-169
Personnel costs	-11	-9	-36
Depreciation	-2	-1	-6
Total operating costs	-788	-797	-3 133
Operating income	-36	-25	-124
Financial income	12	9	45
Financial expenses	-10	-6	-298
Net financial items	2	3	-253
Income after net financial items	-34	-22	-377
Taxon income for the year	9	-4	22
Net profit/loss after tax	-25	-26	-355

PARENT COMPANYBALANCESHEET (SEK million)

	Mar 2008	Mar 2007	Dec 2007
Intangible fixed assets	12	14	13
Tangible fixed assets	22	15	19
Financial fixed assets	529	500	520
Total fixadassets	563	529	552
Inventories	2	-	2
Current receivables	1 348	1 033	1 345
Liquid funds	32	26	21
Total current assets	1 382	1 059	1 368
Total assets	1 945	1 588	1 920
Shareholders' equity	731	1 070	755
Longterm liabilities
Interest-bearing	150	150	150
Non interest-bearing	-	-	-
Total longterm liabilities	150	150	150
Current liabilities
Interest-bearing	476	321	432
Non interest-bearing	588	47	583
Total current liabilities	1 064	368	1 015
Total shareholders' equity andliabilities	1 945	1 588	1 920

SIX YEAR REVIEW

		Jan - Mar	Jan - Mar
		2008	2007	2007	2006	2005		2004		2003
						Remaining		Remaining
						operations	Total	operations Total
Key indicators that effect turnover
1) Pulp price NBSK, USD		878	752	794	675	611		617		524
2) USD/SEK		6,28	7,01	6,76	7,37	7,48		7,35		8,09
Pulp price NBSK, SEK		5 514	5 268	5 368	4 977	4 565		4 532		4 235
Rottneros' deliveries, tonnes		176 100	182 900	714 700	699 500	666 700		625 000		641 100
Turnover andincome, SEK million
Net turnover		748	740	2 927	2 690	2 411	2 429	2 272	2 356	2 380
Profit/loss before depreciation		-81	60	75	148	9	48	129	109	239
Depreciation		-29	-38	-435	-155	-138	-138	-162	-223	-117
Operating profit/loss after depreciation		-110	22	-360	-7	-129	-90	-33	-114	122
Net financial items		-12	-8	-24	-16	-12	-13	-5	-7	-7
Profit/loss after net financial items		-122	14	-384	-23	-141	-103	-38	-121	115
Profit/loss after tax		-89	5	-301	-8	-91	-63	-31	-91	85
Balance sheet items, SEKmillion
Fixed assets		1 169	1 356	1 123	1 363	1 435		1 349		1 249
Inventories		534	390	493	397	430		474		388
Current receivables		512	571	572	570	595		572		443
Liquid funds		125	150	121	122	125		157		252
Assets fromdiscontinued operations		-	-	-	-	26		16		-
Shareholders' equity		956	1 363	1 050	1 403	1 523		1 673		1 717
Long-terminterest-bearing liabilities		172	176	173	177	180		186		42
Long-termnon interest-bearing liabilities		51	82	49	85	118		174		158
Current interest-bearing liabilities		490	298	452	304	375		56		6
Current non interest-bearing liabilities		671	548	585	483	405		472		414
Liabilities fromdiscontinued operations		-	-	-	-	10		7		-
Balance sheet total		2 340	2 467	2 309	2 452	2 611		2 568		2 332
Finaical ratios
Operating margin	%	-14,6	2,9	-12,3	-0,3	-5,3	-3,7	-1,5	-4,9	5,1
Profit margin	%	-16,3	1,8	-13,1	-0,9	-5,8	-4,2	-1,7	-5,2	4,8
Return on capital employed	%	Neg	3	Neg	Neg	Neg	Neg	Neg	Neg	7
Return on equity after full tax	%	Neg	2	Neg	Neg	Neg	Neg	Neg	Neg	5
Equity/assets ratio	%	41	55	45	57	58	58	65	65	73
Debt/equity ratio	Times	0,7	0,4	0,6	0,3	0,4	0,4	0,2	0,2	0,0
Interest cover	Times	Neg	3,1	Neg	Neg	Neg	Neg	Neg	Neg	18,2
Other
Capital expenditure	SEK m	45	106	163	113	234	234	283	283	193
Average no. of employees		710	746	718	754	804	804	835	835	857

1) Source: PIX/Market Pulse

2) Source: Swedish central bank yearly average

3) Year 2003 has not been recalculated in respect of IFRS. Adjustment should be made for IAS 39.