Stora Enso in carry out NETSS, phase two.

STORA ENSO IN CARRY OUT NETSS, PHASE TWO. Stora Enso, Helsinki, Finland has approved implementation of the second phase of the North European Transport Supply System (NETSS), which will start in the third quarter of 2006 and is expected to reduce costs by at least 15% from the current level of about EUR 80 million (US$ 100 million) per year starting from year 2007.

In other Stora Enso news:

* The company said it would acquire 66% of the shares in the Polish packaging producer Intercell S.A. from private shareholders and the International Finance Corp. The acquisition is expected to close by the end of 2004.

* Stora Enso is starting a joint venture with Shandong Huatai Paper, China. The parties will initially conduct a pre-feasibility study concerning publication paper production in China, including a market analysis and an investigation of the possibility of transferring an existing paper machine to China. The pre-feasibility study is expected to be complete in March 2005. Stora Enso will have majority shareholding.