AGM RELEASE FROM ROTTNEROS AB

Rottneros’ objectives

Rottneros’ long-term objectives are to be a pure pulp producer, to be the world leader in mechanical pulps, to be a non-integrated supplier with a clear niche strategy, to maintain a strong financial position irrespective of economic fluctuations and to grow both organically and through acquisitions. Lars Blecko, President and CEO of the Rottneros Group, set out these objectives in the opening remarks of his address to Rottneros’ Annual General Meeting, which was held in Sunne, Sweden on 27 April.

He gave an account of the Group’s financial targets, which are to provide a return on capital employed of 18 per cent and to achieve a profit margin of 10 per cent over an economic cycle while maintaining a strong balance sheet at all times. A further priority objective is stability of earnings – i.e. to avoid periods of loss. The profit of SEK 15 million for the first quarter 2004, which was published just before the meeting, means that Rottneros has been able to report a positive result for the 19th quarter in succession.

(For complete AGM release see attached file)