June 7, 2005

Nippon Paper Industries' European Office to Open

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Takahiko Miyoshi) will open an European Office in Amsterdam, the Netherlands, in July this year. This is part of the tangible activities for carrying out the "Group Vision 2015," which aims to achieve sustainable growth in corporate value.

The basic strategies of the Group Vision 2015 include positive entry into overseas markets and a growth strategy that incorporates the possibility of M&A, in addition to the establishment of the Group's high-margin operations in the domestic paper and paper-related businesses. In these strategies, the Nippon Paper Group has defined Europe as a market that, like Asia and North America, holds the key to successful growth. Specifically, the Group will be focusing on business communication paper in a bid to expand existing businesses and launch new ones.

Nippon Paper Industries jointly set up Jujo Thermal Oy in July 1992 to manufacture thermal paper in the city of Kauttua, in southwestern Finland. This joint venture has now emerged as one of Europe's leading manufacturers of paper for labels for retail and freight purposes. It has won high marks from customers for its outstanding product quality. In view of the steady growth of the European thermal paper market, Jujo Thermal Oy will be adding a coater to double production capacity.

The new Europe Office will provide support for the production expansion plan of Jujo Thermal Oy, and will also aid in bolstering customer services and expanding sales of other business communication paper. It also has a mission to gather information to explore the feasibility of launching new businesses in Central and Eastern Europe, areas of expected future growth in demand.

[Brief Profile of the Europe Office]
2. Location: Amsterdam, the Netherlands