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MND / MNP - Mondi Organisational Alignment

Release Date: 08/07/2009 15:00
Code(s): MND MNP
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MND / MNP - Mondi Organisational Alignment Mondi Limited (Incorporated in the Republic of South Africa) (Registration number: 1967/013038/06) JSE share code: MND ISIN: ZAE000097051 Mondi plc (Incorporated in England and Wales) (Registration number: 6209386) JSE share code: MNP ISIN: GB00B1CRLC47 LSE share code: MNDI As part of the dual listed company structure, Mondi Limited and Mondi plc (together `Mondi Group`) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the JSE listings requirements and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority. Mondi organisational alignment Mondi today confirmed that it has entered into consultations with staff at its Merebank site, as well as with the relevant unions, regarding the proposed mothballing of its PM32 paper machine (representing a 120 000 tonne capacity reduction per annum) as well as the reorganisation of its newsprint and paper production operations. This is in response to a strong decline in sales margins and low market prices in the fine paper business and a reduction in international selling prices of Newsprint. The remaining two fine paper machines, PM31 and PM33 have sufficient capacity to meet market demand in the current conditions. Following completion of the consultation process, in total approximately 240 employees may be affected by this organisational alignment, which represents around 4.1 percent of Mondi`s permanent employee complement in South Africa. Mondi advised that it will offer support to employees, in addition to severance packages, subject to consultation with staff and their representatives. Contact: Kerry Crandon Group Communications Manager Mondi Tel: +27 11 994 5425 E-mail: kerry.crandon@mondigroup.com www.mondigroup.com Louise Brugman PR Representative for Mondi Financial Dynamics Tel: +27 11 214 2415 Email: louise.brugman@fd.com www.fd.com About Mondi Group Mondi is an international paper and packaging group and in 2008 had revenues of _6.3 billion. Its key operations and interests are in Western Europe, emerging Europe, Russia and South Africa. The Group is principally involved in the manufacture of packaging paper and converted packaging products; uncoated fine paper; and speciality products and processes, including coatings and consumer flexibles. Mondi is fully integrated across the paper and packaging process, the growing of wood and manufacture of pulp (including recycled materials) and paper to the converting of packaging papers into corrugated packaging and industrial bags. Mondi has production operations across 35 countries and had an average of 33,400 employees in 2008. www.mondigroup.com 8 July 2009 Sponsor: UBS South Africa (Pty) Ltd Date: 08/07/2009 15:00:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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