<B>EU Extending Investigation of SCA Acquisition</B>

The European Commission decided to extend its investigation of SCA's acquisition of Metsa Tissue. The move means the EC's examination of the deal may continue for another four months.

Under the sale and purchase agreement, SCA has committed itself to providing the commission with certain, limited undertakings. But so far, the EC believes the undertakings are insufficient.

SCA and Metsa Tissue's owner, Metsa-Serla, will now enter the second phase of the proceedings with the common objective of getting the transaction cleared by the commission.

The decision has already been pushed back once. SCA and Metsa-Serla originally hoped to receive EC clearance for the deal by September 15, but the decision was delayed until September 26.

SCA also is considering becoming more aggressive in the North American market through acquisitions. The U.S. paper industry is in the midst of a significant consolidation frenzy, as some of the largest paper and paperboard companies are acquiring others in the industry to improve their economies of scale.