Stora Enso expects the Group's profitability in the second half of 2008 to be negatively affected by the impact of rising fossil fuel prices on energy, transportation and chemical costs, which has already become apparent in the first half of 2008 compared with the first half of 2007. The forthcoming increases in Russian export duties on roundwood are causing continuing uncertainty in the Baltic Sea region.

After three quarters of deteriorating performance, combined with the uncertain macroeconomic outlook, Stora Enso is reviewing its plans for production curtailments in the second half of 2008 as well as permanent capacity reductions. Reducing the dependence on purchased natural gas, as evidenced by the already announced Langerbrugge and Maxau energy investments, has become even more critical for the Group.

Owing to these factors, the estimate of overall annual unit cost inflation in 2008 has been raised to 4%. The original commitment to compensate for 2.5-3% of the unit cost inflation for the full year through internal actions is reconfirmed. The Group is further intensifying its efforts to mitigate the increases in unit cost inflation.

    http://www.storaenso.com
    http://www.storaenso.com/investors

    For further information, please contact:
    Hannu Ryopponen,
    Deputy CEO and CFO,
    tel. +358-2046-21450

    Keith B. Russell,
    SVP, Investor Relations,
    tel. +44-7775-788659

    Ulla Paajanen-Sainio,
    VP, Investor Relations and Financial Communications,
    tel. +358-2046-21242

SOURCE Stora Enso

    For further information, please contact:

    Ulla Paajanen-Sainio,
    Vice President,
    Investor Relations and Financial Communications,
    tel. +358-40-763-8767

    http://www.storaenso.com
    http://www.storaenso.com/investors

SOURCE Stora Enso

    ----------------------------------------------------------------------
    | Tradewinds       | Number of shares  | % of shares   | % of votes  |
    | Global           |                   |               |             |
    | Investors, LLC   |                   |               |             |
    ----------------------------------------------------------------------
    | Series R shares  | 42AeA792 233        | 5.41          | 1.80        |
    ----------------------------------------------------------------------

The holding of Tradewinds Global Investors, LLC has been calculated according to the share capital registered on 16 July 2008.

    http://www.storaenso.com
    http://www.storaenso.com/investors

    For further information, please contact:
    Keith B Russell, SVP, Investor Relations, tel. +44-7775-788-659
    Ulla Paajanen-Sainio, VP, Investor Relations and Financial
    Communications, tel. +358-40-763-8767

SOURCE Stora Enso

Three other U.S. Global funds also earned top-quartile rankings in various time periods, according to Lipper.

U.S. Global managed $5.39 billion in mutual fund assets as of June 30, 2008, and 95 percent of these assets were in funds ranked in the top quartile of their respective peer groups in at least one of the time periods going back 10 years, according to Lipper.

"Nine of our 13 funds have achieved this performance recognition, and it's been across a wide range of time periods and investment categories - natural resources, emerging markets, large-cap, mid-cap and fixed income," says Frank Holmes, CEO and chief investment officer. "This shows the effectiveness of our investment culture and processes that seek to actively integrate top-down macro factors with bottom-up stock analysis to find opportunities and manage risk.

"We are an independent-thinking investment company with a global reach and we're not controlled by any big bank or brokerage, which allows us to have an entrepreneurial culture. On top of that, we are debt-free as a company and we own none of the derivative products that have damaged so many financial companies," Mr. Holmes says. "We can't control what others do in the markets, but we can make sure that we execute our investment processes, and that discipline will keep us focused and striving to deliver strong long-term returns in the future."

For the one-year period ended June 30, 2008, U.S. Global's Global Resources Fund (PSPFX) ranked #30 among all U.S. mutual funds in total return, according to the WSJ. About 7,000 distinct mutual funds (excluding multiple share classes) have a one-year track record, according to the latest available data from Morningstar's Principia database.

The Global Resources Fund ranked #4 among all U.S. mutual funds in total return for the five-year period ended June 30, 2008, according to the WSJ. U.S. Global's Eastern European Fund (EUROX) ranked #12, the World Precious Minerals Fund (UNWPX) was #14 and the Gold and Precious Metals Fund (USERX) ranked #50. Nearly 5,000 distinct mutual funds have a five-year record, according to Principia's latest list.

Three of the U.S. Global funds were also on the top-performing list for the 10-year period ended June 30, 2008. The Global Resources Fund ranked #9, the Eastern European Fund was #10 and the Gold and Precious Metals Fund was #52. More than 3,400 distinct mutual funds have a 10-year record, according to the latest available figures from Principia.

In addition, the All American Equity Fund (GBTFX) ranked #2 among 816 large-cap core funds and the Global MegaTrends Fund (MEGAX) was #3 among 756 large-cap growth funds for the one-year period ended June 30, 2008, according to the WSJ.

U.S. Global's Holmes Growth Fund (ACBGX) ranked in the top 10 percent of mid-cap growth funds for the one-year and top quartile for the five years ended June 30, 2008, according to Lipper. The Holmes Growth Fund ranked #38 of 596, #43 of 408 and #56 of 181 funds for total return for the latest 1-, 5- and 10-year periods.

The Tax Free Fund (USUTX) ranked in the top 10 percent of U.S. general municipal debt funds for the latest year, according to Lipper. The Tax Free Fund ranked #17 of 235, #98 of 210 and #58 of 153 funds for total return for the 1-, 5- and 10-year periods as of June 30, 2008.

The U.S. Government Securities Savings Fund (UGSXX) ranked in the top quartile of U.S. government money market funds for the latest five- and 10-year periods, according to Lipper. The U.S. Government Securities Savings Fund ranked #39 of 118, #15 of 98 and #9 of 71 funds for total return for the 1-, 5- and 10-year periods as of June 30, 2008.

Total Annualized Returns as of June 30, 2008

                                                      Gross    Capped
                                                     Expense  Expense
             Fund              1-Year 5-Year 10-Year  Ratio    Ratio
------------------------------ ------ ------ ------- -------- --------
Global Resources (PSPFX)       37.59% 45.70%  23.48%    0.96%      N/A
Eastern European (EUROX)        9.09% 36.05%  22.79%    1.98%      N/A
World Precious Minerals
 (UNWPX)                       14.09% 35.51%  16.65%    1.01%      N/A
Gold and Precious Metals
 (USERX)                       33.49% 31.53%  18.30%    1.33%      N/A
All American Equity (GBTFX)     5.91% 13.26%   2.19%    2.13%    1.75%
Global MegaTrends (MEGAX)      11.72% 13.63%   5.76%    2.55%    1.85%
Holmes Growth (ACBGX)           5.78% 14.69%   7.06%    1.74%      N/A
Tax Free (USUTX)                3.54%  2.67%   3.94%    2.00%    0.70%
U.S. Govt. Securities Savings
 (UGSXX)                        3.47%  2.86%   3.33%    0.65%    0.45%

Gross expense ratio as stated in the most recent prospectus. The Adviser for the All American Equity Fund has contractually limited total fund operating expenses (as a percentage of net assets) to not exceed 1.75% (exclusive of acquired fund fees and expenses of 0.01%) through November 1, 2008, or until such later date as the Adviser determines. The Adviser for the Tax Free Fund has contractually limited total fund operating expenses (as a percentage of net assets) to not exceed 0.70% through November 1, 2008, or until such later date as the Adviser determines. The Adviser for the U.S. Government Securities Savings Fund has contractually limited total fund operating expenses to not exceed 0.45% through November 1, 2008, or until such later date as the Adviser determines. Effective May 12, 2008, the Adviser has contractually limited total fund operating expenses (exclusive of acquired fund fees and expenses of 0.01%) not to exceed 1.85% for the Global MegaTrends Fund on an annualized basis through October 31, 2008, or such later date as the Adviser determines. Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any fees described in the fund's prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

About U.S. Global Investors, Inc.

U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment advisor that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds, U.S. Global Accolade Funds and other clients.

With an average of $5.50 billion in assets under management for the quarter ended March 31, 2008, U.S. Global Investors manages domestic and offshore funds offering investment options from emerging markets to money markets. In general, trends in assets under management are the critical driver of revenue and earnings.

Please consider carefully the fund's investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage Inc.

An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Gold funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The price of gold is subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in gold or gold stocks. Morningstar Principia is an investment advisory and consulting resource that ranks mutual funds and other investment products using ranking metrics. It ranks funds among distinct portfolios and excludes index funds. Morningstar rankings are not intended to predict future results. More information is available at www.morningstar.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Users acknowledge that they have not relied upon any warranty, condition, guarantee, or representation made by Lipper. Any use of the data for analyzing, managing, or trading financial instruments is at the user's own risk. This is not an offer to buy or sell securities. Tax-exempt income is free from federal income taxes. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. Bond funds are subject to interest-rate risk; their value declines as interest rates rise. By investing in a specific geographic region, a regional fund's returns and share price may be more volatile than those of a less concentrated portfolio. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.

SOURCE: U.S. Global Investors, Inc.

U.S. Global Investors, Inc., San Antonio
Terry Badger, 210-308-1221
Director of Communications
tbadger@usfunds.com