HELSINKI, Finland, July 26 - Stora Enso Oyj announced results for the second quarter ended June 30, 2001. Sales for the quarter at EUR 3 388.4 million were about 7% less than the previous quarter's EUR 3 637.0 million. The operating profit excluding non-recurring items was EUR 346.4 million, which is 33.8% less than the previous quarter's EUR 523.0 million and 10.2% of sales. The reduction was attributable to decreased sales volumes owing to production curtailments of 558 000 tonnes, of which 342 000 tonnes were market related (205 000 tonnes in the first quarter). The profit before tax and minority interests excluding non-recurring items was EUR 248.3 million (EUR 429.5 million in previous quarter). Foreign exchange losses decreased the second quarter profit by EUR 44 million. Commenting on the results, Stora Enso's CEO Jukka Harmala said, "Markets were demanding, as anticipated when announcing the first quarter results. In addition to seasonal curtailments, such as the midsummer standstill that is compulsory in Finland, production was curtailed to adjust to the market demand. Demand in June was also lower for normal seasonal reasons. The impact of the curtailments is apparent in the second quarter figures. Paper and board prices have held up fairly well. Profitability should recover fairly quickly, if prices can be maintained.'' Jukka Harmala is confident about the recent acquisition of Consolidated Papers in North America. "The USD 40 million of synergies are a good achievement in the challenging economic environment, especially since the product range includes primarily coated paper, which has suffered most from the market situation. The USD 90 million synergy target will be difficult to achieve in 2001 unless demand significantly improves in North America during the second half of this year.'' Markets will remain demanding and further capacity control is needed. Stora Enso will continue to adjust capacity utilisation as appropriate. The full year financial results will depend very much on the company's ability to maintain prices, internal efficiency and cost awareness. The full version of the Stora Enso interim review was published on July 26, 2001 and filed with the Securities and Exchange Commission on Form of 6-K on the same day. Stora Enso is an integrated forest products company producing magazine papers, newsprint, fine papers and packaging boards, areas in which the Group is a global market leader. Stora Enso also conducts extensive sawmilling operations. Stora Enso's sales total EUR 13 billion and annual paper and board production capacity about 15 million tonnes. Some 45,000 persons are employed in more than 40 countries and the company's shares are listed in Helsinki, New York and Stockholm.