May 25, 2004

Establishment of a Sales Company in China

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

Nippon Paper Industries Co., Ltd. (President: Takahiko Miyoshi), Japan's leading paper and pulp manufacturing company and a core member of the Nippon Unipac Holding Group, has resolved to set up a sales company in Shanghai, China.

The objectives of this launch of a new company are as follows:

(1) Cultivation of the market for the Company's joint venture manufacturer of paper in the Hebei Province in China, which was announced in December last year and which is due to commence operations in spring next year.
(2) Development of the original local customers and establishment of a sales network through the sale of products from the Group with a view towards future expansion of its business in China.

<Company Profile>

(1) Company name (tentative) : Nippon Paper Industries Trading (Shanghai) Co., Ltd.
(2) Location : Shanghai Waigaoqiao Free Trade Zone, China Sales bases: Shanghai, Beijing, etc.
(3) Capital : 200,000 U.S. dollars, with Nippon Paper Industries the sole investor
(4) Number of employees : Approximately 10 initially
(5) Business : Import and sale of paper and raw materials, sales support for products manufactured by the Company's joint venture manufacturers in China, etc.
(6) Commencement of operations : Scheduled for July 2004

<Reference: the Group's business bases in China>

Company name
Equity position
Shouguang Liben Paper Making Co., Ltd. Manufacture of base paper for carbonless copying paper Shouguang, Shandong Province
Dec. 1995
Shanghai JP Co., Ltd. Sale of products of Shouguang Liben Paper Making Co., Ltd. Shanghai
Nov. 1996
Zhejiang Jingxing Paper Joint Stock Co., Ltd. Manufacture of linerboards, corrugating medium, etc. Pingfu, Zhejiang Province
Invested in Aug. 2001
Zhejiang Jingxing Nippon Paper Co., Ltd. Manufacture of corrugating medium Pingfu, Zhejiang Province
Under construction
Everwealth Paper Industries (Shanghai) Co., Ltd. Manufacture and sale of different paper boxes and containers Songjiang, Shanghai
Invested in Aug. 2003
Nippon Paper Industries Chengde Co., Ltd. (tentative) Manufacture of paper Chengde, Hebei Province
In progress
Elopak China Ltd. (tentative) Manufacture of beverage cartons Jiangsu Province
In progress