American Depositary Receipts - ADRs 

What is an American Depositary Receipt (ADR)?
An ADR is a negotiable U.S. certificate representing ownership of shares in a non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Also, the dividends are paid to investor in U.S.dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investor, and to provide a corporate finance vehicle for non-U.S. companies.

What are the benefits of ADRs to US investors?
US investors generally prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to US market conventions. One of ADRs’ top advantages is the facilitated diversification into foreign securities. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information, if listed. ADR holders also appreciate prompt dividend payments and receiving corporate action notifications.

What types of companies issue ADRs?
ADRs issuers are typically large multinational corporations. Any non-U.S. company seeking to raise capital in the U.S. or increase their base of U.S. investor can issue ADRs.

Is it easy to get information and updates on an ADR company?
Investor receive annual reports and proxy materials in English. ADRs listed on U.S. exchanges provide holders with the same level of information as any other U.S. security. Trading information is readily available on OTCQX website.

Where are Stora Enso ADRs traded?
The ADR shares are listed on the International OTCQX.

How will the move to the OTCQX affect holders of the ADR?
The Company’s ADRs will continue to trade as a ‘Level I ADRs’ on the OTCQX, and there will be no material change to the relationship between the Company and the ADR holders, nor in the rights of ADR holders.

Who is Stora Enso’s depositary for ADRs?
Deutsche Bank Trust Company Americas. The depositary bank plays a key role in issuance as well as cancellation of ADRs. It also maintains the ADR holder register and distributes the dividends in US dollars.

How are ADRs related to Stora Enso ordinary shares?
Every Stora Enso ADR represents one Stora Enso series R ordinary share, i.e. the exchange rate is 1:1.

What is the difference between a Registered holder and a Beneficial ADR holder?
A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of record. A beneficial holder is one whose holdings are registered in a name other than their own, such as in the name of a broker, bank or nominee.

What is Stora Enso ADR CUSIP code?
86210M106

How are ADR dividends paid and taxed?
Dividends are paid in U.S. dollars and are generally taxable, just like dividends on U.S. shares. In addition, taxes may be withheld by the ADR company's local government. Depending on individual circumstances, foreign taxes withheld might be applied as a credit against U.S. taxes, or tax reclaim opportunities may be offered.

How can I find out dividend and corporate action information on Stora Enso?
For dividend and corporate action information, please visit http://www.adr.db.com/. In the right hand corner of the screen, enter company name, CUSIP or symbol. From the Company Public View section, select Corporate Actions Calendar. Alternatively you may contact Deutsche Bank Trust Company Americas Shareholder Services on (866) 249-2593.

How can I buy an ADR?
You can buy an ADR through a broker, just as you would U.S. securities. You can also buy the ADRs of some companies through the DB-Direct Investor Services Program. DB-Direct is a dividend reinvestment and direct purchase plan open to existing shareholders and new investors. Through the program, participants can buy initial and additional ADSs, sell ADSs and reinvest dividends all at low costs. For more information on DB-Direct, please log on to http://www.adr.db.com/ and select the DB-Direct tab or telephone (866) 249-2593.

Can I have my dividends directly deposited into my bank account?
Through the Direct Deposit service, dividends are sent by Electronic Funds Transfer (EFT) directly to your designated bank account on the U.S. payable date.

Will the SEC de-registration change your reporting standards and frequency?
No, the Company will continue to comply with the rules of the NASDAQ OMX Helsinki and Finnish financial and other ongoing reporting requirements.  In addition, the Company will continue to publish in English on its website (http://www.storaenso.com/) materials that are required to be made public pursuant to Finnish law, or required to be publicly filed with its primary trading markets or required to be distributed to its security holders.

What are the expected cost savings from the de-registration?
De-registration from the SEC brings with it significant cost savings both in terms of direct costs (costs associated with Form  20-F preparation and legal fees) as well as the costs of complying with SOX Section 404 (evaluating and reporting on our internal controls), but these will not be disclosed.

Why haven’t you discontinued your ADR programme altogether?
The ADR programme is an important part of the Company’s equity listing strategy.  Also, the ADR programme plays a vital role in helping the Group build relationships with American-based investors.

Why have you chosen to list on the International OTCQX instead of the standard OTC market?
The International OTCQX is a premium market tier that distinguishes leading international companies from other securities traded over-the-counter.  Also  the reporting and disclosure requirements of the International OTCQX are in line with the Company’s current high standards of disclosure.

Will you be filing a 20-F Annual Report for 2007? 
No, the de-registration process was completed by April 2008, and as such, the Company will not be required to file a Form 20-F Annual Report with the SEC.

Why are shareholders being charged an additional fee on their dividend payment for 2008?
Following the delisting of Stora Enso's ADRs from the NYSE, the ADRs are now trading on the International OTCQX platform which is part of Over-The-Counter ("OTC") market in the US. It is standard practise for depositary banks to charge ADR shareholders a dividend fee of $0.02 per ADR for companies who ADRs trade on the OTC market. The fee is charged to cover administrative costs associated with processing the dividend.

How is the dividend fee determined?
The dividend fee is stipulated in the Deposit Agreement between the depositary bank and the company based upon industry standards. The Deposit Agreement is filed with the SEC and is readily accessible by the public.

What do I do if I do not wish to pay the dividend fee but still wish to retain a shareholding in Stora Enso?
ADR shareholders can convert their ADRs to R shares denominated in Euros and quoted on the NASDAQ OMX Helsinki by contacting their broker and requesting a cancellation of their ADRs. Shareholders will need to have a local brokerage account in order to custodise thh R shares as no physical share certificates are available. Note that future dividend payments will then be made in Euros so conversion costs into US dollars need to be considered.

Will the fee be $0.02 every year, or could it vary? Could the fee be lower if the dividend was reduced in the future?
There are no current plans to change the fee. The $0.02 fee per ADR is in line with current market practice and is not dependent  on the total amount of dividend being paid.

Do all companies on OTCQX charge a dividend fee?
No, but dividend fees are common place amongst companies with Level 1 ADR programmes (ie. ADRs that are traded over-the-counter).

Will any other additional fees be charged in respect of teh dividend or for maintaining the ADR programme?
No.