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The SPPR Global Profitability Index Shows Improvement for 3rd Consecutive Quarter

The SPPR Global Pulp and Paper Profitability Index (return on sales criteria) for Q3-04 which was published earlier this month showed an increase of 0.9% points from 8.1% in Q204to 9.0% in Q304. This was the third quarterly increase in a row since pulp and paper profitability started to rebound after four years of steady decline since early in year 2000.

Index sample file available at: http://www.sppr.no/SPPR_Index.htm

The index is based on a weighed average of the returns of approximately 150 pulp and paper companies worldwide.

SPPR also publishes indexes for the main segments of the pulp and paper industry, namely (1) Market Pulp; (2) Publication Papers; and (3) Fine Papers. Shortly, indexes will also be released on (4) Packaging Papers; and (5) Wood Products.

For Q3-04 The Publication Paper index showed a relatively strong increase of 2.7% points from 5.8% in Q204 to 8.5% in Q304. Fine Papers also showed distinct improvement by 2.9% points although starting from the low level of 0.6% in Q204 to reach 3.5% in Q304.

Market Pulp showed reduced profitability in Q304 whereas return on sales declined from 25.8% in Q204 to 20.8% in Q304.

The next update of this index will be published approximately March 1, 2005.

SPPR based at Nesoddtangen, Norway is a leading provider of information to the worldwide pulp and paper industry.


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Last updated 16.12.2004

Scandinavian Pulp & Paper Reports
Bergveien 37, P.O. Box 264
1450 Nesoddtangen.
NORWAY.

Phone: +47 66 91 73 20 - Fax: +47 66 91 73 11
Email: sppr@sppr.no