UPM's Share Capital Increase

Helsinki, Finland, 21 March 2007 -- A total of 1300 UPM Kymmene Corporation share options 2002E were used for the subscription of 2600 shares from 09 December 2006 to 28 February 2007. The shares have been registered in the Finnish Trade Register on 21 March 2007.

As a result of the subscriptions, UPM's share capital was increased by 2600 new shares, i.e., by EUR 4420. After the registration, the total number of UPM shares is 523,262,030 and the share capital of the company is now EUR 889,545,451.00.

Dividend rights and other shareholder rights shall begin when the increase of the share capital has been registered on the Trade Register of Finland. An application has been submitted for listing the new shares together with the old shares at the stock exchange list of the Helsinki Exchanges as of 22 March 2007.