January 23, 2004

Nippon Paper Industries Apologizes for Industrial Waste Issue in Fuji City, Shizuoka Prefecture

Nippon Unipac Holding Group
Nippon Paper Industries Co., Ltd.

After many years of coastal erosion, strong alkaline sludge believed to have been dumped in or before 1958 has emerged along the seashore of the Fuji Kaigan coast, located to the south of Suzukawa Mill.
Suzukawa Mill probed the matter, but discovered that no documents or any other record of those days remained. Nonetheless, after interviewing local residents and former employees, we have confirmed that the sludge is industrial waste generated from the pulp manufacturing process at Suzukawa Mill.
Judged based on today's community standards, this dumping is unacceptable. Nippon Paper Industries takes this matter very seriously, and expresses its profound apologies to local residents and others affected.
The Company is committed to taking action to deal with this situation with responsibility and sincerity, and in accordance with the instructions of the Ministry of Land, Infrastructure and Transport and other authorities, to win back the confidence of the local community.

The Nippon Paper Industries Code of Conduct was established in 1998 as a pledge to "observe laws and ordinances and their spirit, to behave in compliance with public common sense and to conduct fair and transparent corporate activities." In addition, the Company introduced a framework for promoting Corporate Social Responsibility (CSR) management. At the same time, it set up a Compliance Office in October last year, as a means of strengthening its commitment to CSR management. Nippon Paper Industries will mobilize the entire Company in an effort to bolster awareness to prevent any recurrence of this problem. The Company respectfully requests understanding and support as it undertakes this initiative.