May 24, 2007

Notice of Establishment of Hospitality Program for Shareholders

Nippon Paper Group, Inc.

Nippon Paper Group, Inc. (President: Masatomo Nakamura) is pleased to announce that, at a meeting of the Board of Directors held on May 24, 2007, the Company decided to establish the Hospitality Program for Shareholders.
1. Objectives
The Company aims to facilitate greater shareholder understanding of the operations of the Nippon Paper Group by presenting them with Group products as a token of gratitude for their consistent support and patronage. In addition, through this system, the Company seeks to make investing in its shares more attractive and to increase the number of its shareholders in the long and medium terms.
2. Details of the Hospitality Program for Shareholders
(1)Qualified Shareholders
Shareholders owning one or more shares of the Company whose names are stated or recorded on the list of shareholders or the list of effective shareholders as of March 31 of each year
(2)Contents of the Hospitality Program
Irrespective of the number of shares owned, the Company will send to all qualified shareholders described above one (1) gift package containing assorted household goods (such as facial tissue and bathroom tissue) manufactured and sold by Nippon Paper Crecia Co., Ltd., a member of the Nippon Paper Group.
3. Timing for Program Implementation
The gift package will be sent after the close of the ordinary general meeting of shareholders to be held in June 2007