SAPPI PRESS RELEASE

SAPPI ANNOUNCED TODAY THAT THE SHAREHOLDERS OF LEYKAM MURZTALER PRESENT AT THAT
COMPANY'S EXTRAORDINARY SHAREHOLDERS MEETING HELD IN VIENNA TODAY UNANIMOUSLY
APPROVED THE MERGER OF LEYKAM MURZTALER WITH SAPPI PAPIER HOLDING AND AGREED TO
ACCEPT THE SAPPI OFFER OF 32 EURO PER SHARE. SAPPI ALSO COMMITTED TO PAY AN
ADDITIONAL 3 EURO PER SHARE TO THE MINORITY SHAREHOLDERS OF LEYKAM MURZTALER
AFTER THE TRANSACTION HAS BEEN COMPLETED, PROVIDING THAT THERE ARE NO

PROCEDURAL OR VALUATION CHALLENGES INSTIGATED AGAINST THE SAPPI GROUP
RESTRUCTURING.

THE TOTAL COST OF ACQUIRING THE MINORITY INTERESTS IN LEYKAM MURZTALER WILL
AMOUNT TO APPROXIMATELY 90 MILLION U.S. DOLLARS

SAPPI EXPECTS THE FULL INTEGRATION OF ITS FINE PAPER BUSINESS TO BE
SUBSTANTIALLY COMPLETED BY THE MIDDLE OF 2000.
9 MARCH 2000

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. UNDER 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 CYNICAL NATURE OF THE PULP AND PAPER INDUSTRY (AND THE FACTORS
THAT CONTRIBUTE TO SUCH CYCLICALITY, SUCH AS LEVELS OF DEMAND, PRODUCTIONS
CAPACITY, PRODUCTION AND PRICING), ADVERSE CHANGES IN THE MARKETS FOR SAPPI'S
PRODUCTS, CONSEQUENCES OF SUBSTANTIAL LEVERAGE, CHANGING REGULATORY

REQUIREMENTS, UNANTICIPATED PRODUCTION DISRUPTIONS, ECONOMIC AND POLITICAL
CONDITIONS IN INTERNATIONAL MARKETS, THE IMPACT OF INVESTMENTS, ACQUISITIONS
AND DISPOSITIONS (INCLUDING RELATING FINANCING), CURRENCY FLUCTUATIONS,
PROBLEMS RELATED TO YEAR 2000 AND THE CONSEQUENCES OF THE INTRODUCTION OF THE
EURO. SAPPI UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE AND OF THESE

FORWARD-LOOKING STATEMENTS, WHETHER TO REFLECT NEW INFORMATION OR FUTURE EVENTS
OR CIRCUMSTANCES OR OTHERWISE.
ENDS