April 17, 2006

Nippon Paper Industries Increases Equity Stake
in Corrugated Carton Board Processor in China
Ups Holding in Everwealth Paper Industries (Shanghai) Co., Ltd. to 40%

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Masatomo Nakamura) is pleased to announce that the Company's stake in Everwealth Paper Industries (Shanghai) Co., Ltd., a manufacturer and processor of corrugated carton board in Shanghai, has been increased to 40%, up from the previous 23% through the purchase of shares.
Accompanying China's economic growth, the corrugated carton board market has been growing each year in China. To secure a base for the Group's corrugated carton board business in China, Nippon Paper Industries took a stake in Everwealth Paper Industries (Shanghai), a wholly-owned subsidiary of Everwealth Paper Industries, in 2003, and has since operated a joint venture business. To facilitate the growth and development of Everwealth Paper Industries (Shanghai), Nippon Paper Industries has increased its equity stake in Everwealth Paper Industries (Shanghai) by acquiring a 17% stake from Everwealth Paper Industries. With the new stake, Nippon Paper Industries will aim to bolster production facilities and strengthen the sales structure by focusing on the Huadong area, which encompasses Shanghai, Zhejiang and Jiangsu.
[Holdings Everwealth Paper Industries (Shanghai)]
Name of Shareholder Before Purchase After Purchase
Everwealth Paper Industries 77.0% 60.0%
Nippon Paper Industries 23.0% 40.0%
[Profile of Everwealth Paper Industries (Shanghai)]
1. Established: 1993
2. Capital: Approximately US$6,000,000
3. Location: Songjiang District, Shanghai (25km southwest from the center of Shanghai)
4. Type of Business: Manufacture and processing of corrugated carton board
5. Production: Approximately 30,000,000m2/year