February 6, 2006

Merger Agreement Concluded
between San-Mic Shoji Co., Ltd. and Komine Nissho Co., Ltd.

Nippon Paper Industries Co., Ltd.

San-Mic Shoji Co., Ltd. (Head Office: Chiyoda-ku, Tokyo, President: Toshio Yamamoto) of Nippon Paper Group and Komine Nissho Co., Ltd. (Head Office: Chuo-ku, Tokyo, President: Noriyuki Hanzawa) have concluded a merger agreement today following a resolution at a meeting of the Board of Directors of both companies. The agreement is based on the merger memorandum signed by both on October 18, 2005.The newly merged company will be established on April 1 after approval for this agreement is obtained at a General Shareholders' Meeting scheduled for February 23, 2006.
Summary of the Merger Agreement  
1. Name of the new company: Nippon Paper Trading Co., Ltd.
2. Address of the head office: 2-1, 2-chome Uchikanda, Chiyoda-ku, Tokyo (the current address of San-Mic Shoji)
3. Merger ratio
San-Mic Shoji
Komine Nissho
Merger ratio
4. Capital: 1,000,000,000 yen
5. Directors from Komine Nissho appointed as directors of the newly merged company
(1) Directors: Noriyuki Hanzawa, Shoji Inami, Iwao Sakamoto and Yutaka Koizumi
(2) Auditor: Kohzo Uno