Paper Industry April 2006 News

M-real Sells Mill, Cuts 100 Jobs in France

July 01, 2006 M-real has sold today the Pont Sainte Maxence paper mill in France to a German company Arques Industries. The sale of the mill causes about EUR 35 million sales loss which is booked in the result of the second quarter.

The annual capacity of the Pont Sainte Maxence mill is 120,000 tons and it employs 200 people. As a result of the transaction M-real's turnover will be decreased by about EUR 70 million.

In addition, an efficiency programme has been started at the French Alizay paper mill, as a result of which the number of personnel at the mill will be reduced by about 100 persons. The non-recurring cost of EUR 13 million arising from this weakens the result for the second quarter.

"The profitability of our French mills has been for a long period at a very unsatisfactory level. The efficiency programme at Alizay and the sale of Pont Sainte Maxence will have a positive effect on M-real's result in the future", says Hannu Anttila President and CEO.

According to Hannu Anttila M-real has now achieved the savings objective of EUR 200 million set for the savings programme launched in the spring of 2004. Planning of new savings programmes is already in progress.

Cascades completes the acquisition of Sprague board mill

Kingsey Falls, Québec, July 19, 2006 - Cascades Inc. (CAS-TSX) announces that it has completed on July 19, 2006, the previously announced acquisition of the Sprague (Connecticut) coated recycled board mill from Caraustar Industries Inc. (NASDAQ-CSAR). This transaction, which amounts to US$ 14.5 million, received the approval of the environmental authorities of the State of Connecticut. In the future, the Sprague mill will operate under the name Cascades Boxboard Group-Connecticut LLC, Versailles Mill.

Caraustar Industries, Inc. Completes Sale of Its Sprague Coated Recycled Paperboard Mill to Cascades Inc.

ATLANTA, July 19 /PRNewswire-FirstCall/ -- Caraustar Industries, Inc. (Nasdaq: CSAR) today announced that it completed the sale of the assets of Sprague Paperboard, Inc., located in Versailles, CT, to Cascades Inc. (CAS-TSX). The coated recycled paperboard mill was sold for $14.5 million USD. In conjunction with the sale, Caraustar executed a long-term supply agreement with Cascades to supply coated recycled boxboard (CRB) to Caraustar's folding carton plants.

Michael J. Keough, president and chief executive officer of Caraustar, stated, "The completion of this transaction marks another achievement for Caraustar in moving ahead with its previously announced plans to focus on businesses in which we have greater strengths and opportunities to grow. This includes expanding our leadership position in the production of lightweight gypsum facing paper, continuing to develop innovative products such as our recently announced weather resistant Kolumn Form(TM) and working closely with our folding carton and specialty product customers to meet their value-added product needs."

Caraustar, a recycled packaging company, is one of the world's largest integrated manufacturers of converted recycled paperboard and is dedicated to providing customers with outstanding value through innovative products and services. Caraustar has developed its leadership position in the industry through diversification and integration from raw materials to finished products. Caraustar serves the four principal recycled boxboard product end- use markets: tubes, cores and composite cans; folding cartons; gypsum facing paper and miscellaneous other specialty paperboard products. For additional information on Caraustar, please visit the company's website at www.caraustar.com.

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact, as well as statements including words such as "expect," "intend," "will," "believe," "estimate," "project," "budget," "forecast," "anticipate," "plan," "may," "would," "could," "should," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by such statements. Such risk factors include, among others: the company's ability to sell other related facilities; the competitive environment in the paper industry and competition, customer and vendor responses to the company's proposed strategic transformation plan; and uncertainties regarding the cost, availability or feasibility of expansion, technology, investment or acquisition opportunities that the company may desire to pursue. Additional risk factors relating to Caraustar that could cause actual results to differ from those expressed or implied by the company's forward looking statements are contained in Caraustar's most recent Forms 10-K and 10-Q and 8-K filed with, or furnished to, the Securities and Exchange Commission. Caraustar undertakes no obligation to update any forward- looking statements and is not responsible for any changes made to this press release by wire or Internet services.

Stora Enso sells its Pankakoski Mill to a group of private investors

Stora Enso Oyj Stock Exchange Release 21 July 2006 at 06:30 GMT

Stora Enso has signed a definitive agreement to sell its Pankakoski Mill in Finland to an international group of investors led by Dr Dermot Smurfit and including Lansdowne Capital Limited. The debt-free sales price is EUR 20 million, subject to closing date adjustments, and the Group's interest-bearing net liabilities will decrease by the same amount. The Group has recorded a capital loss of EUR 11.0 million as a provision in its second quarter 2006 results.

Annual sales of Stora Enso's Packaging Boards division will decrease by approximately EUR 60 million and the working capital will be reduced by approximately EUR 12 million following the Pankakoski Mill divestment. The divestment, which is expected to be completed by the end of July 2006, will have no material effect on the Group's future operating profit.

The divestment is part of Stora Enso's Asset Performance Review (APR), which aims to secure a competitive European production base.

"We are pleased to have found a buyer dedicated to continuing production and development at Pankakoski Mill. The success of the purchaser's Powerflute mill will certainly help Pankakoski further develop its position as a speciality board mill," says Ohto Nuottamo, Senior Vice President, Stora Enso Carton Boards.

Pankakoski Mill was part of Stora Enso's Packaging Boards division. The mill produces speciality paperboards for packaging and graphical end uses on two board machines with a total annual capacity of around 100 000 tonnes. Pankakoski Mill, at Lieksa in Finland, employs about 200 people.

The buyer, a group of international private investors including Lansdowne Capital Limited and Dr Dermot Smurfit, will establish a new company to run the operations at the mill. The same group of investors owns Powerflute Ltd, which operates a semi-chemical fluting mill in Finland.

Stora Enso Group's non-recurring items in second quarter 2006

There are two non-recurring items with a net impact of EUR 6.7 million on operating profit: EUR -11.0 million related to the divestment of Pankakoski Mill and EUR 17.7 million due to changes in Stora Enso's Finnish unemployment insurance provisions.

For further information, please contact:

Hannu Ryöppönen, CFO, tel. +358 2046 21450

Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197

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

Ohto Nuottamo, SVP, Carton Boards, tel. +358 40 570 1573

www.storaenso.com/pankakoski

www.storaenso.com/investors

New Pulp and Paper Mill Planned in Russia

July 31, 2006 - The government of Khanty-Mansyisk autonomous region, Russia, has signed a cooperative agreement with Avantage Capital for the construction of a new pulp and paper mill.

According to a report in Paper and Life, the mill project will become a part of a regional development program for 2000–2010.

The proposed mill would have an annual capacity to produce 500,000 tons of pulp.

The future mill's paper capacity was not disclosed.

SOURCE: Paper and Life