Sappi`s Potlatch Transaction Finalised

Sappi`s Potlatch Transaction Finalised                                          
Sappi Limited                                                                   
Announcement                                                                    
Johannesburg, 13 May 2002                                                       
Sappi`s Potlatch Transaction Finalised                                          
Following on its announcement of 18 March 2002, Sappi is pleased to announce    
that it has fulfilled all conditions precedent to its purchase from Potlatch    
Corporation of Potlatch`s printing papers division as well as the Cloquet       
pulp and paper mill in Duluth, Minnesota, USA.  The transaction was             
therefore completed on 13 May 2002.                                             
Initial calculations indicated that this transaction would provide Sappi        
with synergies and savings amounting to approximately US $120 million per       
annum once the business is fully integrated.  Sappi Chairman, Eugene van As,    
confirmed on 7 May 2002, during Sappi`s 2nd quarter results announcement,       
that this figure continues to be Sappi`s target.  He said Sappi believed        
that at least US 20 cents per share would be added to earnings in 2003.         
The integration of the new business into Sappi`s North American structures      
will now commence.  Considerable planning work has been undertaken since the    
announcement of the transaction, and Sappi expects the transition of the        
manufacture of products produced at the Brainerd Mill, which Potlatch has       
announced that it will close, to Sappi`s other facilities will proceed          
smoothly.  Trials have been conducted and the ability to manufacture the        
products at Cloquet and Sappi`s other facilities has been confirmed.            
The successful conclusion of this transaction ensures Sappi`s pre-eminent       
position in the North American coated fine paper market.  The Cloquet mill      
will form an important part of Sappi`s North American business in the           
future.                                                                         
Last week Sappi announced the new management structure for Sappi Fine Paper     
North America, including the Potlatch business, and also announced that Tom     
Collins, former Production Manager from Sappi`s Somerset Mill, would            
transfer to Cloquet and become  Director of the Cloquet Mill.                   
ends                                                                            
Issued by Brunswick on behalf of Sappi                                          
Telephone +27 (0)11 442 8803                                                    
For further information:                                                        
Andr Oberholzer                                                                
Corporate Affairs & Communication Manager                                       
Sappi Limited                                                                   
Tel +27 (0) 11 407 8044                                                         
Fax +27 (0) 11 403 8236                                                         
Cell +27 (0) 82 906 0638                                                        
Andre.Oberholzer@za.sappi.com                                                   
Date: 14/05/2002 07:30:09 AM Produced by the SENS Department