Change in finance policy regarding currency hedging

Billerud’s Board of Directors has decided to change the company’s finance policy regarding currency hedging to the following:

”Billerud continuously hedges a forecast net flow in foreign currencies. Some 50% of flows over the coming 12 months will always be hedged. Following a decision by the Board, this figure may rise to 100% of net flows over the coming 15 months if it is considered suitable with regard to profitability and the currency situation.”

The previous wording was as follows:

“Billerud continuously hedges forecast net flows in foreign currencies. Some 50% of flows over the coming 12 months will always be hedged. This figure may rise to 100% of flows over the coming 15 months if exchange rates will enable Billerud to achieve a return of over 20% on capital employed.”

Solna September 6, 2007
Billerud AB (publ)

Per Lindberg
President and CEO