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Mondi Group Alters Organizational Structure
London, England, 18 October 2007 -- Mondi Group today announces a new organization structure, after a review commenced following Mondi’s listing as an independent business in July 2007. The changes are designed to ensure that Mondi continues to eliminate duplication, simplify processes, and align its business model across the Group.

From 01 January 2008, in place of the current Mondi Packaging and Mondi Business Paper Business Units, there will be a Europe and International Division and a South Africa Division.

The new Europe and International Division will comprise the existing Mondi Packaging and Mondi Business Paper businesses outside South Africa. It will be headed by Peter Oswald, the current CEO of Mondi Packaging. Günther Hassler, the current CEO of Mondi Business Paper, has decided to leave Mondi to pursue other opportunities when the transition to the new organisation structure is complete. Within Europe, papermaking operations will be headed by Peter Machacek, who will join the Group Executive Committee, reporting to Peter Oswald.

The new South Africa Division will principally comprise the existing Mondi Business Paper South Africa business. It will be headed by Ron Traill, the current MD of the Steti mill in the Czech Republic, who will succeed Otto Pichler, who is returning to Europe in early 2008.

The reporting lines for Mondi Packaging South Africa, Mondi Shanduka Newsprint, Aylesford Newsprint, and Europapier will remain as at present.

Commenting on the new organizational structure, David Hathorn, Mondi Group CEO, said, “The new organisation structure will enable Mondi to improve both effectiveness and efficiency, by eliminating duplication across the Group at all levels. Within the new structure, we will continue to pursue our strategy of focusing on our strengths in selected paper and packaging segments and concentrating our growth on opportunities which offer cost and market advantages, particularly in emerging economies.”

About Mondi Group

Mondi is an integrated paper and packaging group founded in South Africa in 1967. In 2006 it had revenues of EUR 5.751 billion. Its key operations and interests are in Europe and South Africa. Mondi is principally involved in the manufacture of packaging paper, converted packaging products (including corrugated packaging, bags, and flexible packaging), and office paper.

Mondi is integrated across the paper and packaging production process from the growing of wood for pulp production and the manufacture of pulp and paper, to the conversion of packaging papers into corrugated packaging and industrial bags. It also has a growing flexibles business focused on the production of release liner, extrusion coating, and consumer flexibles products.

Mondi has production operations in 113 locations across 35 countries and approximately 33,000 employees.

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