January 21, 2008

Investigation Committee and Prevention Committee

Nippon Paper Industries Co., Ltd.

To probe the causes of the situation in which the Company manufactured and sold products misrepresenting their recycled pulp contents and to ascertain where responsibility lay, the Company has founded today the Investigation Committee, which includes external experts, and the Prevention Committee of in-house members. In the future, by establishing a system of production and sales that is acceptable to both ourselves and our clients, we aim to rebuild a credible system of supply.
1. Investigation Committee
Its main activity is to conduct a fact-finding survey to probe the causes and ascertain where responsibility lay. The committee consists of nine members, including external experts.
Noboru Hasegawa, Executive Vice-President (Chairman of the CSR Committee), Nippon Paper Group, Inc.
Masaru Motomura, Director (Chairman of the Corporate Ethics Subcommittee), Nippon Paper Group, Inc.
Committee members:
2 external experts
*Candidates under selection. Final appointees to be announced on the Company's Web site.
External Auditor (1), Corporate Auditor (1),
General Manager of Internal Auditing Office, General Manager of CSR Office
(4 members above from Nippon Paper Group, Inc.)
General Manager of Compliance Office
(from Nippon Paper Industries Co., Ltd.)
2. Prevention Committee
Based on reports by the Investigation Committee, the Prevention Committee will swiftly translate the findings into concrete measures, with the aim of quickly recreating a supply chain management system that our clients can trust.
In order to prevent a recurrence, we are to discuss how to establish a highly transparent system that covers all processes from order placement to sales, fully respecting compliance.
The Chairman of the Investigation Committee shall also act as the Chairman of the Prevention Committee and the rest of the Committee members will be appointed from among employees of the Company.
The committees will report their progress from time to time and will prepare a final report on the investigation results and measures to prevent recurrence. The final report will be submitted to the authorities concerned and released outside the Company.