June 13, 2006

Launch of Contract Production of Hachisuka Sakura Cherry Trees:
Smooth Start of the Rooted Cutting Business Based on Unique Biotechnology

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Masatomo Nakamura) launched a new rooted cutting business using its independently developed biotechnology in April this year. Recently, the Company received an order for the production of Hachisuka Sakura 1 cherry tree rooted cuttings from the Hachisuka Sakura to Buke Yashiki no Kai 2 based in the city of Tokushima in Tokushima Prefecture. Production is already underway at the Komatsushima Mill in Komatsushima, Tokushima Prefecture, taking advantage of the Company's biotechnologies including its photo-autotrophic culture system3. The ordered Hachisuka Sakura rooted cuttings will be delivered this coming fall. Their blossoms might be seen as early as the spring of 2007.
The cutting of cherry trees is extremely challenging and as a result many cherry varieties are cultivated by grafting. The Hachisuka Sakura to Buke Yashiki no Kai has traditionally grown the Hachisuka Sakura cherry trees by grafting in order to preserve plant and promote this specific cherry variety.
The recent acceptance of this order indicates the high regard held for Company's method of producing rooted cuttings based on its original technology which has the advantage of supplying high quality cuttings in large quantities over a short period of time. Unlike grafts, the cherry cuttings produced by the Company have roots growing directly from the cherry trees that the client wishes propagate. The cuttings are expected to have beautiful bark, long life and other favorable characteristics.
Nippon Paper Industries will provide added value such as high quality, a stable supply and a shorter delivery lead time even for tree varieties that are hard to produce and cultivate. The Company will endeavor to achieve the early expansion of its new rooted cutting business.
1 Hachisuka Sakura is a cherry variety associated with Mochiaki Hachisuka, the final lord of the former Awa domain
2 Hachisuka Sakura to Buke Yashiki no Kai (The Society for the Preservation of Hachisuka Sakura Cherry Trees and the Feudal Warrior Residence)
This society engages in activities to publicize the 250-year-old Hachisuka Sakura cherry tree that stood on the grounds of Tokushima Castle and to preserve the feudal warrior residence of the Harada clan.
3 Photo-autotrophic culture system
Instead of using sugar as a source of energy in tissue culture, highly concentrated carbon dioxide, water and light are used to facilitate the photosynthetic capabilities of the plant.

Rooted cuttings of Hachisuka Sakura grown using Nippon Paper Industries' technologies
Rooted cuttings of Hachisuka Sakura grown using Nippon Paper Industries' technologies
Hachisuka Sakura cherry blossoms
Hachisuka Sakura cherry blossoms