January 25, 2006

Nippon Daishowa Paperboard Kanto Converts
Boiler Fuel from Heavy Oil to City Gas

Nippon Daishowa Paperboard Co., Ltd.

Nippon Daishowa Paperboard Kanto Co., Ltd. (President: Shinya Maeda), a member of Nippon Daishowa Paperboard Co., Ltd. responsible for production, has completed work to convert boiler fuel from heavy oil to city gas, undertaken with an investment of approximately 250 million yen, at Ashikaga Mill (Ashikaga City, Tochigi). The new-fuel-based operation got fully underway in January 2006.
The full conversion of the fuel at the mill from heavy oil to city gas will reduce carbon dioxide emissions derived from fossil fuels by 27,000 tons a year, corresponding to 1.9% of all emissions of Nippon Daishowa Paperboard.
Global warming is now major international environmental issue. In its Environmental Charter, Nippon Daishowa Paperboard advocates measures to combat global warming. The Company is committed to energy saving and the effective use of biomass energy, aiming at reducing carbon dioxide emissions by 10% from the figure in FY1990 by FY2010. The fuel conversion is designed to decrease emissions through the transition from heavy oil with a high basic unit of carbon dioxide emissions to natural gas (city gas) with a lower impact on the environment.
Ashikaga Mill produces linerboard and corrugated medium, core paperboard, pasted paperboard and other products, using recovered paper as its raw material. The mill has also conducted work to improve the drainage disposal equipment.
The Company will be proactive in its efforts to help create a recycling society and preserve the global environment, with a focus on environmental conservation in the community.