UPM-Kymmene Oyj — M&A Activity 2011

Apr 19, 2011

Disclosure 286526

UPM-Kymmene - Company Announcement

UPM's associated company Pohjolan Voima sells Fingrid shares to the State of Finland and Ilmarinen

UPM-Kymmene Corporation Stock exchange release 19 April 2011 at 10:10 EET The energy company Pohjolan Voima Oy, the State of Finland and the Mutual Pension Insurance Company Ilmarinen today signed a contract on the sale of Pohjolan Voima's 25% shareholding of Fingrid, the Finnish electricity transmission system operator. The transaction will be closed today. The State acquires approximately 81% of the shares and Ilmarinen approximately 19% of the shares owned by Pohjolan Voima. The transaction price is EUR 325 million, and Pohjolan Voima will record a capital gain of EUR 200 million for the transaction. UPM owns 43.12% of Pohjolan Voima. UPM will recognise a special income of EUR 86 million from the sale in the associated company results in the second quarter. UPM-Kymmene Corporation Pirkko Harrela Executive Vice President, Corporate Communications UPM, Corporate Communications Media Desk, tel. +358 40 588 3284 media@upm.com DISTRIBUTION NASDAQ OMX Helsinki Ltd Main media www.upm.com