SAPPI NOVOBORD SALE APPROVED

SAPPI LIMITED
PRESS RELEASE
11 AUGUST 2000
SAPPI NOVOBORD SALE APPROVED

THE COMPETITION COMMISSION HAS APPROVED SAPPI'S SALE OF SAPPI NOVOBORD TO SONAE
SOUTH AFRICA (PTY) LTD, SAPPI ANNOUNCED TODAY.

THE GLOBAL PAPER GROUP CONFIRMED THAT THE SALE, ANNOUNCED ON MAY 25, WOULD
YIELD A SIGNIFICANT ONE-OFF GAIN, BUT WAS NOT EXPECTED TO HAVE ANY MATERIAL
EFFECT ON FUTURE EARNINGS.

THE DEAL IS NOW UNCONDITIONAL AND SHOULD BE CONCLUDED WITHIN A MONTH, THE
COMPANY ADDED.

SAPPI NOVOBORD IS A PARTICLEBOARD AND MEDIUM DENSITY FIBRE-BOARD (MDF)
MANUFACTURER WITH FACTORIES IN WHITERIVER AND GEORGE.  SONAE SOUTH AFRICA, A
WHOLLY OWNED SUBSIDIARY OF SONAE INDUSTRIA SPGS, THE WORLD'S LARGEST

MANUFACTURER OF WOOD-BASED PANELS HAS BEEN IMPORTING PARTICLEBOARD AND MDF
BOARD TO SOUTH AFRICA SINCE THE EARLY '90S AND HAS RECENTLY COMMISSIONED A
PLANT NEAR PIET RETIEF.

SONAE INDUSTRIA'S CHAIRMAN, SERGIO GONZALES ANDION SAID HE WAS DELIGHTED BY THE
ANNOUNCEMENT AND REITERATED THAT THE ACQUISITION DEMONSTRATED SONAE'S

CONFIDENCE IN SA AND IN CONDUCTING INTERNATIONAL BUSINESS HERE.

SAPPI FOREST PRODUCTS CHAIRMAN, JOHN JOB, SAID THAT NOVOBORD, ALTHOUGH A VERY
SUCCESSFUL WOOD-BASED PANELS ENTERPRISE, FELL OUTSIDE SAPPI'S FOCUS ON COATED
FINE PAPER. THE SALE WAS PART OF SAPPI'S PROGRAMME TO DISPOSE OF NON-CORE
ASSETS.

INCLUDING THIS SALE, SAPPI HAS SOLD US$326 MILLION OF ASSETS SINCE SETTING
ITSELF A TARGET OF
R2 BILLION IN MAY 1998.
ENDS

ABOUT SAPPI:  SAPPI IS A LEADING PRODUCER OF COATED FINE PAPER (WHICH IS USED
IN HIGH QUALITY PUBLICATIONS SUCH AS ANNUAL REPORTS, CATALOGUES, BROCHURES AND
MAGAZINES) AND HAS A 15% SHARE OF THE WORLD MARKET.  IT IS THE LARGEST PRODUCER
IN NORTH AMERICA, EUROPE AND AFRICA, PRODUCING ONE IN EVERY FOUR SHEETS OF
COATED FINE PAPER IN THE WESTERN WORLD.

THE COMPANY IS ALSO THE LEADING PRODUCER OF DISSOLVING PULP IN THE WORD (USED
TYPICALLY IN THE MANUFACTURE OF VISCOSE TEXTILES) WITH A MARKET SHARE OF 15%.
ABOUT SONAE SPGS:  SONAE, FOUNDED IN 1959, HAS ITS ORIGINS IN THE FOREST
PRODUCTS BUSINESS AND HAS SUCCESSFULLY GROWN INTO PORTUGAL'S LARGEST PRIVATE
CONGLOMERATE, WITH 1999 SALES OVER US$5 BILLION.  MARKET-LEADING BUSINESSES
ACCOUNT FOR MORE THAN 90% OF SONAE'S ESTIMATED NAV.  SONAE'S LISTED BUSINESSES
ARE IN RETAILING (THE LARGEST IN PORTUGAL AND THIRD LARGEST IN BRAZIL),
SHOPPING CENTRE DEVELOPMENT AND WOOD-BASED PANELS.  ITS KEY UNLISTED BUSINESS
IS IN TELECOMMUNICATIONS, SHORTLY TO BE LISTED AS SONAE.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.
RELEASED ON BEHALF OF SAPPI BY WESTCOM.
FOR FURTHER INFORMATION :

ROBERT HOPE                                    CRAIG MACMURRAY

DIRECTOR STRATEGIC DEVELOPMENT                 MANAGING DIRECTOR

SAPPI LIMITED                                  SONAE - TAFIBRA SOUTH AFRICA
TEL: +27 (0) 11 407 8492                       TEL: +27 (0)11 788 1874
FAX: +27 (0) 11 403 1493                       FAX: +27 (0)11 788 1876