Jun 15, 2006. /Lesprom Network/. M-real's Publishing business is seeking a price increase of approximately 5% for coated magazine papers (Galerie Papers) in the European markets effective from 1 September 2006. Negotiations with customers have started and will continue over the next weeks. The increase is needed to partly compensate continuing high input cost escalation, especially in energy, transport and raw materials, which cannot be recovered only by the productivity improvements and cost reductions already ongoing in our business. “Whilst we realise that our customers, especially in the printing industry, are facing similar challenges, we have to together find the means to manage pricing in a co-operative way”, M-real said. “It is expected that the overall demand for these grades will improve in the second half of 2006 and the autumn season especially is forecasted to be strong. We believe that it is essential to avoid the risk of extreme price movements, which are damaging for all in the business, and will seek agreements with our customers based on this moderate increase to current prices”. M-real is one of Europe’s leading suppliers of paperboard and related services, coated and uncoated fine paper and coated magazine paper. Its main market is Europe, but its products are sold worldwide. M-real focuses on four business areas: consumer packaging, publishing, commercial printing and office papers. Map Merchant Group is M-real’s paper merchant.