March 14, 2006

Agribio Business Promotion Office Established
- Rapid Expansion of the Biotech-Based Cutting Plantlet Business -

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Masatomo Nakamura) is pleased to announce the establishment of the Agribio Business Promotion Office within the Corporate Planning Division on April 1. The Office will be responsible for facilitating the launch of the new cutting plantlet business using original biotechnologies and developing the business.
AThe new business offers added value in response to customer needs, using biotechnologies such as photoautotropic cultures developed in-house. Specifically, it will offer the following:
(1) A stable supply even for hard-to-produce species;
(2) Mass production with a much shorter delivery period than previously attainable.
Given its ability to generate this value, the Company's technologies have earned high marks from customers during the market development undertaken by the Company since last year.
To rapidly respond to these market needs, Nippon Paper Industries will set up an organization and commence production of plantlets for tea, silver dollar, cherry and other trees at the facilities for the cutting plantlet business (cultivation room, greenhouse, farm field, etc.) at Komatsushima Mill (Komatsushima City, Tokushima) this April. Target annual sales by 2015 are two billion yen.