Stora Enso and the Nizhny Novgorod regional administration in Russia have signed a letter of intent setting out the basic principles for further pre-investment work for a proposed paper and pulp mill in the region.

The non-binding agreement is the logical continuation of the pre-feasibility study announced on 17 July 2007 and confirms the commitment of the Nizhny Novgorod administration and Stora Enso to continuing with preparations for the potential mill development. The objective of the project remains unchanged: to manufacture paper for Russian consumers from Russian wood - in Russia.

If the results of pre-feasibility and any subsequent complete feasibility studies are favourable, the Stora Enso Board of Directors will then consider any proposed investment decision.