Changed capital gains taxation in Germany on sale of fine paper operations

In 2000, SCA sold its 50-percent holding in the fine paper company MoDo Paper AB. The transaction had been preceded by a merger of SCA’s then Swedish and German fine paper operations. The German tax authorities have re-examined that valuation on which the transaction was based. As a consequence of the tax authorities’ decision, SCA must pay capital gains tax of EUR 48 M including interest. EUR 8 M of this amount can be recovered in future years. Accordingly, the decision, which is final, means that SCA is paying a capital gains tax of 11% on the transaction. The tax expenses now being incurred, EUR 40 M, are being offset by the tax reserve allocated earlier for the divestment transaction. Stockholm, 12 September 2006 SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ) Communications and Investor Relations For further information please contact Lennart Persson, Executive Vice President and CFO, +46 8 788 51 22 Pär Altan, Vice President Media Relations, +46 8 788 52 37