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Sappi Limited - Press release SAPPI LIMITED (Registration number 1936/008963/06) Issuer Code: SAVVI JSE Code: SAP ISIN Code: ZAE 000006284 Press Release Johannesburg, 02 February 2004 Sappi"s first quarter results reflect mixed market conditions Sappi, the world"s leading producer of coated fine paper, today announced results for the first quarter to December 2003. Highlights Strong demand in Europe Weak North American markets SA businesses profitable despite stronger Rand Staff restructuring and paper machine closure progressing smoothly Previously announced charges of 15 US cents for quarter EPS loss of 9 US cents for quarter Commenting on the results, Sappi CEO Jonathan Leslie, said: "Stripping out the previously announced charges of 15 US cents for the quarter would leave a modest profit of 6 US cents. Although this was a disappointing quarter, our geographic diversity buffered us somewhat as different market conditions prevailed in our two major fine paper markets. Positive developments in Europe were offset by weak apparent demand for coated fine paper in the US. Pricing was under severe pressure in both regions. Our South African businesses experienced good demand and achieved reasonable margins despite currency volatility." "Sappi Forest Products sales volumes were up 10% on last year driven primarily by volume growth from the Sappi Saiccor dissolving pulp business." Looking forward, Leslie continued: "Economic conditions appear to be improving globally and particularly in Europe where the increasing demand is expected to continue. The United States market remains challenging and we are focusing management attention on improving the performance of our North American business. "However, with continued weak US markets and no marked changes in our other major markets, the second quarter"s earnings are likely to be at a similar level to the first quarter excluding charges and additional costs. It now seems less likely that we will achieve an improvement in earnings for the full year compared to 2003." Ends The full results announcement is available at www.sappi.com Forward looking statements Certain statements in this 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 earnings, savings, synergies, 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 international markets, the impact of investments, acquisitions and dispositions (including related financing), any delays, unexpected costs or other problems experienced with integrating acquisitions and achieving expected savings and synergies and currency fluctuations. 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. Issued by: Brunswick South Africa on behalf of Sappi Limited Tel + 27 (0)11 268 5750 Fax + 27 (0)11 268 5747 For further information: Robert Hope Director Strategic Development Sappi Limited Tel +27 (0)11 407 8492 Robert.Hope@sappi.com Andre F Oberholzer Corporate Affairs and Communication Manager Sappi Limited Tel +27 (0)11 407 8044 Mobile +27 (0)82 906 0638 Andre.Oberholzer@sappi.com Date: 02/02/2004 09:05:03 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
