Mondi Signs Contract for New Lightweight Recycled Containerboard Machine

London, England, 18 September 2007 -- Mondi Group has signed a delivery contract with Metso for a new lightweight recycled containerboard machine with a production capacity of up to 470,000 metric tons a year.

The signing of the contract is the latest stage in the project announced earlier in 2007 to invest in a new lightweight recycled containerboard machine in central Europe.

Subject to agreement on the level of available governmental support, the machine is expected to be sited either at the Świecie mill in Poland or at the Steti mill in the Czech Republic. If it is decided to locate the machine at Świecie, it is planned that it will be owned and operated by Mondi Packaging Paper Świecie S.A., a 66% held subsidiary.

The project will also include a new corrugated box plant with a capacity of up to 250 million square meters per annum board production. The total investment is estimated at EUR 350 million and the project is due for completion in June 2009.

The new machine is expected to be the clear cost leader in Europe, combining the benefits of the low operating cost environment in central Europe with the synergy benefits that come from using the infrastructure of an existing mill and supporting sales and distribution structures. Furthermore, it will offer exposure to the high growth lightweight containerboard segment, supported by the fast growing manufacturing sector in this region of Europe.

About Mondi Packaging

Mondi Packaging, a member of the Mondi group, is a global paper and plastic packaging group. The company is active in the corrugated, bag and flexibles businesses and is a packaging specialist for containerboard, corrugated packaging solutions, kraft paper, industrial bags, extrusion coating, release liners, and consumer flexibles solutions.

Mondi Packaging has more than 90 production facilities in more than 30 countries. Its 16,000 employees are dedicated to developing customized packaging solutions for optimum protection and promotion of its customers´ products.

About Mondi

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 112 locations across 34 countries and averaged approximately 34,000 employees in 2006.