Pöyry to Participate in Tres Lagoas Pulp Mill Project in Brazil

Vantaa, Finland, 21 December 2006 -- Pöyry's Forest Industry business group has entered into an agreement with Chamflora - Três Lagoas Agroflorestal Ltda. regarding the implementation of a greenfield bleached kraft pulp mill in the state of Mato Grosso do Sul in Brazil.

Chamflora, a wholly-owned subsidiary of International Paper (IP), began operating in the state of Mato Grosso do Sul in 1988. Control of the pulp mill project, as well as Chamflora's existing eucalyptus plantations and operating assets, are expected to be transferred to Votorantim Celulose e Papel S.A. VCP) in early 2007, according to the terms of an existing exchange agreement between IP and VCP.

Pöyry Tecnologia Ltda. has participated in the development of the project during the conceptual and feasibility phases as well as in the basic engineering of the pulp mill. Pöyry Tecnologia Ltda. has been designated in the agreement as the supplier of overall project management as well as engineering, procurement, and construction management services for the pulp mill project. The parties expect to enter into the appropriate services agreement by the end of January 2007.

The final price is dependent on the scope of the services, but is estimated to be no less than USD 50 million. A separate stock exchange notice will be issued upon the execution of the Services Agreement.

Pöyry is a global consulting and engineering firm focusing on the energy, forest industry, and infrastructure and environment sectors. Pöyry's annual net sales amount to about EUR 600 million and it employs 6000 experts.