Share-Based Option Programmes

In 2004 Stora Enso established two new share-based option programmes for top 200 managers. The purpose of the programmes is to complement and replace 50% of the existing option programmes for these employees. The new programmes are synthetic share awards where designated employees may receive shares already issued (not new shares). The total number of shares that may be awarded under these two programmes is 652 500.

Option/Synthetic Option Programmes

Stora Enso has six option/synthetic option programmes for key personnel. Options/synthetic options were issued in 1999, 2000, 2001, 2002, 2003 and 2004. Depending on local circumstances, holders may receive either cash compensation or an option to purchase shares already issued (not new shares).

Warrants

A maximum of 3 000 000 new Stora Enso Series R shares were subscribed under the terms of the bonds with warrants issued to members of the senior management on 10 April 1997. According to the terms of the option programme, the exercise period was 1 December 1998 to 31 March 2004 and the subscription price FIM 45.57 (about EUR 7.66) each. The programme is fully subscribed and closed.

Stora Enso North America Option Programme

Following the acquisition of Consolidated Papers, Inc. the Board of Directors decided to convert the Consolidated Papers’ share option plans into Stora Enso share option plans. The options entitle the holder to either cash compensation or an option to subscribe for shares already issued (not new shares).

Option Programmes