<B>Asia Pacific Division Cutting Production</B>

Riaupaper will reduce its uncoated woodfree production budget to 25,000 metric tons per month per month in November and December. This represents a reduction of about 15% from previously planned production output.

The total capacity of the mill is 350,000 tons per year.

According to the company, the reduction is being taken to bring supply and demand into balance, as well as stabilize prices for the finished product.

Over the past several months prices for many finished products have been under pressure as consumers resisted higher prices. With many of these producers attempting to push through price increases by the first half of next year, sharp production declines, some producers hope, will give price increases a better chance of going through.