PRESS RELEASE  2008-05-22

Besozzo Italy, May 22, 2008

The current market situation with over capacity and consequent price pressure together with high and increasing energy costs has led to a situation with negative result for Munksjö’s mill in Besozzo, Italy.

The Munksjö Board of Directors has therefore decided to stop the production at the mill by the end of June. The plan is to produce and deliver all confirmed orders before this date. Production of some grades such as Masking Paper will be transferred to other mills within the Munksjö Group. Munksjö will continue to support its customers on the Italian market through existing European structure, with its sales force and by providing technical customer service.

The Besozzo mill today employs approximately 170 employees. After almost ten years of different investments, rebuilding paper machines and continuous efforts on increasing the efficiency, Munksjö is truly sad about this situation and will actively support the Besozzo employees with accessible different solutions.

Munksjö currently operates four paper mills in Germany, Spain, Italy, and USA as part of its Decor Group. The specialty paper manufactured in these plants is used for surface upgrading of woodbased panels. It finds its final application in furniture manufacturing, interior design and laminate flooring.

Munksjö AB

Jan Åström
President and CEO

For questions, please contact:
Åsa Fredriksson, Director HR and Information, +46 (0)36 303300