SAPPI LIMITED ANNUAL GENERAL MEETING

SAPPI LIMITED
SAPPI ON TRACK FOR IMPROVED EARNINGS

GLOBAL PULP AND PAPER COMPANY SAPPI IS ON TRACK FOR A "SUBSTANTIAL INCREASE" IN
EARNINGS PER SHARE AND A FURTHER SIGNIFICANT DEBT REDUCTION IN THE CURRENT
FINANCIAL YEAR, EXECUTIVE CHAIRMAN EUGENE VAN AS SAID AT THE GROUP'S ANNUAL
GENERAL MEETING IN JOHANNESBURG TODAY.

"THE FUNDAMENTALS FOR OUR INDUSTRY CONTINUE TO IMPROVE.  WORLD MARKETS FOR OUR
PRODUCTS ARE GROWING STRONGLY AND THE PRICE INCREASE OF 6 PERCENT, WHICH WE
REFERRED TO AT THE END OF LAST YEAR FOR IMPLEMENTATION IN JANUARY AND FEBRUARY,
HAS BEEN ACHIEVED," HE SAID.

PULP PRICES HAVE RISEN TO US$630 A METRIC TON FROM US$460 A YEAR AGO, AND THIS
IS EXPECTED TO RISE FURTHER TO US$670 BY APRIL 1, ACCORDING TO MOST SUPPLIERS.
ADDS VAN AS: "SAPPI'S PAPER OPERATIONS ARE RUNNING AT FULL CAPACITY, AND WE ARE
CONFIDENT THAT WE WILL BE ABLE TO MEET OUR CUSTOMERS' GROWING NEEDS BY THE
SELECTIVE DE-BOTTLENECKING OF EXISTING PLANT, AND THAT WE DO NOT HAVE TO INVEST
IN NEW MACHINES TO MAINTAIN OR GROW OUR CURRENT MARKET SHARE AT THIS STAGE."
ENDS.
RELEASED ON BEHALF OF SAPPI BY WESTCOM.
FOR FURTHER INFORMATION PLEASE CONTACT:
ROBERT HOPE
DIRECTOR STRATEGIC DEVELOPMENT
SAPPI LIMITED
TEL: +27 (0) 11 407 8492
FAX: +27 (0) 11 403 1493
ROBHO@ZA.SAPPI.COM
FORWARD LOOKING STATEMENT

CERTAIN STATEMENTS IN THIS REPORT 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 SUCH TO 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 INTERNATIONAL MARKETS, THE IMPACT OF INVESTMENTS, ACQUISITIONS
AND DISPOSITIONS (INCLUDING RELATED FINANCING), CURRENCY FLUCTUATIONS AND THE
CONSEQUENCES OF YEAR 2000 NON-COMPLIANCE AND INTRODUCTION OF THE EURO.  THE
COMPANY 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.