SAPPI TO BUY OUT MINORITIES AND RAISE NEW EQUITY

OCTOBER 14, 1999.

GLOBAL PULP AND PAPER GROUP SAPPI ANNOUNCED TODAY THAT IT IS MAKING AN OFFER TO
BUY OUT THE MINORITY SHAREHOLDERS IN LEYKAM MURZTALER, THE 74 PERCENT OWNED
AUSTRIAN HOLDING COMPANY, AND HAS ALSO AGREED IN PRINCIPLE TO ACQUIRE THE
MINORITY INTERESTS IN USUTU PULP COMPANY IN SWAZILAND.  BOTH TRANSACTIONS ARE
SUBJECT TO FINAL REGULATORY APPROVAL.

EXECUTIVE CHAIRMAN EUGENE VAN AS SAID THAT SAPPI WAS REORGANISING ITS

INTERNATIONAL STRUCTURE TO CONSOLIDATE THE CASH FLOWS OF ALL ITS SUBSIDIARIES
INTO A WHOLLY-OWNED GROUP, TO RESTRUCTURE ITS OFFSHORE HOLDING COMPANIES FOR
GREATER TAX EFFICIENCY, AND TO REMOVE THE RESTRICTIONS ON THE MOVEMENT OF FUNDS
WITHIN SAPPI.

SAPPI INTENDS TO FUND THE BUYOUTS WITH THE PROCEEDS OF A GLOBAL EQUITY OFFERING
AND ANY SURPLUS WILL BE USED TO REDUCE HIGH COST DEBT.  SAPPI EXPECTS TO RAISE
APPROXIMATELY $200 MILLION.

VAN AS SAID THE TIMING OF THE EQUITY RAISING WAS APPROPRIATE AND THAT BURHMANN,
SAPPI'S LARGEST SHAREHOLDER (19,9 PERCENT) AND FROM WHOM SAPPI ACQUIRED KNP
LEYKAM IN JANUARY 1998, INTENDED TO PARTICIPATE IN THE OFFERING BY PLACING A
THIRD OF ITS SAPPI SHARES FOR ITS OWN BENEFIT.

SAPPI FINANCE DIRECTOR DON WILSON SAID THAT HAD THE EQUITY OFFERING AND THE
MINORITY TAKE OUT BEEN IN PLACE IN THE PAST FINANCIAL YEAR, IT WOULD HAVE
ENHANCED EARNINGS MATERIALLY.

TWO SAPPI PRESENTATION TEAMS EMBARK ON A TWO-WEEK ROAD SHOW AT THE END OF THE
MONTH COVERING EUROPE, SOUTH AFRICA AND THE UNITED STATES. THE OFFERING IS
EXPECTED TO CLOSE IN NOVEMBER.

THE OFFERING IS EXPECTED TO RESULT IN A MUCH WIDER SPREAD OF SHAREHOLDERS, A
FURTHER INTERNATIONALISATION OF THE SHAREHOLDER BASE AND INCREASED LIQUIDITY OF
THE SHARES. LIQUIDITY HAS ALSO IMPROVED SUBSTANTIALLY SINCE THE GROUP LISTED ON
THE NEW YORK STOCK EXCHANGE LAST YEAR.

VAN AS ADDED THAT THE TIMING WAS ALSO APPROPRIATE AS PROSPECTS IN THE PULP AND
PAPER SECTORS WERE EXPECTED TO IMPROVE IN THE COMING YEAR.

SAPPI HAS FILED A REGISTRATION STATEMENT WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION REGARDING THE OFFER, WHICH IS EXPECTED TO BE UNDERWRITTEN
BY A SYNDICATE LED BY MORGAN STANLEY DEAN WITTER.

THE ISSUING OF NEW SHARES FOR CASH IS SUBJECT TO SHAREHOLDER APPROVAL AT A
MEETING EXPECTED TO BE HELD IN JOHANNESBURG ON NOVEMBER 5.
ENDS

RELEASED ON BEHALF OF SAPPI BY WESTCOM. FOR FURTHER INFORMATION PLEASE CONTACT
ROBERT HOPE: DIRECTOR: STRATEGIC DEVELOPMENT AT SAPPI ON +27 (0LL) 407 8492.
THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL SECURITIES IN THE
UNITED STATES. THESE SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES
UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1993, AS AMENDED (THE "SECURITIES
ACT") OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.  ANY PUBLIC OFFERING OF THESE SECURITIES IN THE UNITED STATES
WILL BE MADE BY MEANS OF A PROSPECTUS. THE PRELIMINARY PROSPECTUS WILL BE
AVAILABLE FROM SAPPI LIMITED AT 40 AMESHOFF STREET, BRAAMFONTEIN, JOHANNESBURG,
2001, REPUBLIC OF SOUTH AFRICA. THE PRELIMINARY PROSPECTUS WILL CONTAIN
DETAILED INFORMATION ABOUT SAPPI LIMITED, ITS MANAGEMENT TEAM AND ITS FINANCIAL
STATEMENT.

CERTAIN STATEMENTS IN THIS PRESS RELEASE THAT ARE NEITHER REPORTED FINANCIAL
RESULTS NOR OTHER HISTORICAL INFORMATION, ARE FORWARD-LOOKING STATEMENTS,
INCLUDING, BUT NOT LIMITED TO, STATEMENTS THAT ARE PREDICTIONS OF OR INDICATE
FUTURE EVENTS, TRENDS, PLANS OR OBJECTIVES.  UNDUE RELIANCE SHOULD NOT BE
PLACED ON SUCH STATEMENTS BECAUSE, BY THEIR NATURE, THEY ARE SUBJECT TO KNOWN
AND UNKNOWN RISKS AND UNCERTAINTIES AND CAN BE AFFECTED BY OTHER FACTORS, THAT
COULD CAUSE ACTUAL RESULTS AND COMPANY PLANS AND OBJECTIVES TO DIFFER

MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN THE FORWARD-LOOKING STATEMENTS
(OR FROM PAST RESULTS).  SUCH RISKS, UNCERTAINTIES AND FACTORS INCLUDE, BUT ARE
NOT LIMITED TO, THE HIGHLY CYCLICAL NATURE OF THE PULP AND PAPER INDUSTRY (AND
THE FACTORS THAT CONTRIBUTE TO SUCH CYCLICALITY, SUCH AS LEVELS OF DEMAND,
PRODUCTION CAPACITY, PRODUCTION AND PRICING), ADVERSE CHANGES IN THE MARKETS
FOR THE GROUP'S PRODUCTS, CONSEQUENCES OF SUBSTANTIAL LEVERAGE, CHANGING
REGULATORY REQUIREMENTS, UNANTICIPATED PRODUCTION DISRUPTIONS, ECONOMIC AND
POLITICAL CONDITIONS IN ACQUISITIONS AND DISPOSITIONS (INCLUDING RELATING
FINANCING), CURRENCY FLUCTUATIONS AND THE CONSEQUENCES OF YEAR 2000

NON-COMPLIANCE AND INTRODUCTION OF THE EURO.  SAPPI UNDERTAKES NO OBLIGATION TO
PUBLICLY UPDATE OR REVISE ANY OF THESE FORWARD-LOOKING STATEMENTS, WHETHER TO
REFLECT NEW INFORMATION OR FUTURE EVENTS OR CIRCUMSTANCES OR OTHERWISE.
THIS PRESS RELEASE SHALL NOT BE ISSUED IN THE UNITED STATES.