June 24, 2002

Nippon Unipac Holding Announces Guarantee Obligations of Subsidiaries

Nippon Unipac Holding

Tokyo, June 24, 2002 - Nippon Unipac Holding today made an announcement concerning guarantee obligations of its consolidated subsidiaries, Nippon Paper Industries Co., Ltd. and Daishowa Paper Manufacturing Co., Ltd.
 
On June 5, 2002, Nippon Paper Industries assumed responsibility for obligations it guaranteed for NIPPON KAKOH SEISHI CO., LTD., which was declared bankrupt on May 29, 2002 by the Tokyo District Court. The amount of these guarantees executed by Nippon Paper Industries Co., Ltd. was 4 billion yen. The amount Nippon Paper Industries Co., Ltd. will be unable to recover by exercising its collateral rights is unclear at this time.
 
On June 21, 2002, the Shizuoka District Court declared bankrupt Daishowa Transportation Co., Ltd., an affiliate company of Daishowa Paper Manufacturing Co., Ltd. under the terms of the Equity Holding Law. Daishowa Paper Manufacturing Co., Ltd. has guarantee obligations for Daishowa Transportation Co., Ltd. amounting to approximately 5.5 billion yen. If these guarantee obligations were to be assumed by Daishowa Paper Manufacturing Co., Ltd., the amount that Daishowa Paper Manufacturing Co., Ltd. would be unable to recover by exercising its collateral rights is unclear at this time.
 
The effects of these matters on Nippon Unipac Holding's estimated consolidated financial results publicly announced on May 24, 2002 have not been determined yet.