Oslo, Norway, 21 December 2007 -- WoodLog, a jointly owned purchasing company owned by Norske Skog and Södra, has entered into a five-year framework agreement with Norwegian forest owner cooperatives for the delivery of timber.

The agreement entails annual deliveries of spruce pulpwood at the same level as in 2007-2008 to the Norske Skog's mills in Norway.

"This is a good agreement for Norske Skog. We have succeeded in ensuring that sufficient amounts of wood will be delivered to our mills in Norway in an international market characterised by an ever increasing demand for timber. The agreement provides predictability compared with buying some of this timber in the international spot market," says chief executive Christian Rynning-Tønnesen.

Local deliveries, and thus shorter transport routes for the timber, have positive effects for both cost levels and the environment.

Agreements on specific deliveries will be entered into between the individual forest owner cooperatives WoodLog.

The agreement is subject to approval by the board of directors of the companies involved. In addition, the agreement is subject to approval of the annual general meeting in Norske Skog.