SCA and Statkraft Sign Electricity Supply Contract

The Norwegian energy company Statkraft and the Swedish personal care and paper company SCA have signed a long-term electricity supply contract. The 10-year contract is for an annual supply of 500 GWh of electricity to SCA's Swedish wood products facilities.

"This deal will help to bring about a smooth-functioning Nordic market for long-term agreements with industry," says J0rgen Kildahl, Executive Vice President Generation and Market, Statkraft. "We have managed to find good, long-term solutions for both parties and are extremely pleased to have reached a long-term agreement with a leading industrial customer such as SCA.".

"We are also very pleased," says Kenneth Eriksson, President of SCA Forest Products. "We have obtained a long-term supply contract at a very competitive price and this is of major importance for the development of our wood products business in Sweden. We also believe that it is valuable for Swedish industry as a whole that a new electricity supplier is becoming established in Sweden.

The new long-term electricity supply contract opens the door for a profitable investment in new production of mechanical pulp at Ortviken paper mill. The investment is for approximately SEK 800 million and will be completed in spring 2009.

At the same time as the electricity supply contract, Statkraft and SCA have concluded an agreement for long-term cooperation over development of wind power and hydropower assets in Sweden (see separate press release).

Press meeting Media and analysts are invited to a joint press meeting with representatives from both companies. The press meeting will be held in Swedish and Norwegian. A simultaneous interpretation of the webcast will be available in English.

Date: Friday, 14 September 2007 Time: 10.30 CET Venue: Salenhuset, Aulan, Norrlandsgatan 15, Stockholm

Telephone participation: UK participants: + 44 208 817 9301 Swedish and Norwegian participants: + 46 8 505 202 70 US participants: + 1 718 354 1226

Follow the press meeting on the Internet: www.sca.com

Statkraft is a leading company in Europe within renewable energy production. The Group produces hydropower, wind power and district heating, and builds gas-fired power plants in Norway and Germany. Statkraft is a significant player on Europe's power exchanges. In Norway, the company supplies electricity and heating to approximately 600,000 customers directly or through partly owned companies. In 2006 Statkraft had some 2,100 employees and a profit after tax of NOK 6.3 billion. Further information is available at www.statkraft.com

Svenska Cellulosa Aktiebolaget SCA is a global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products. SCA has annual sales in excess of SEK 101 billion (c. EUR 11 billion). SCA had approximately 51,000 employees at the beginning of 2007. SCA's Swedish industrial operations consume almost 3 TWh of electricity per year. The largest single consumer is the Ortviken paper mill in Sundsvall which produces paper for newspapers and magazines and uses 1.8 TWh per year. Further information on www.sca.com

NB This information is such that SCA must disclose in accordance with the Securities and Clearing Operations Act. The information was submitted for publication on 14 September 2007 at 09.50 CET.

This information was brought to you by Cision http://newsroom.cision.com

Contacts:

Statkraft
Ragnvald Naerø, Communication Director
+47 900 80 303
or
SCA
Bodil Eriksson, SVP Corporate Communications
+46 8 788 52 34
or
SCA
Pär Altan, VP Media Relations
+46 8 788 52 37
or
SCA
Johan Karlsson, VP Investor Relations
+46 8 788 51 30
or
SCA Forest Products
Björn Lyngfelt, Communication Director
+46 70 626 82 23

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