<B>Asia Pacific Resources International Selling Mill to UPM</B>

The APRIL Group and its majority shareholder signed an agreement to sell their 51% interest in the Changshu paper mill to UPM-Kymmene of Finland for around $150 million. APRIL will own 100% of the Suzhou converting plant. The deal is expected to close within the next two weeks.

APRIL will continue to hold an existing $121 million loan from UPM-Kymmene secured by shares of Riaupulp. APRIL will also enter into a 6-1/2 year pulp supply contract for the supply of bleached hardwood kraft pulp to the Changshu paper mill.

APRIL is one of Asia's major producers of pulp and fine paper. The APRIL Group has a 98.5% ownership of P.T. Riau Andalan Pulp & Paper, which operates a 850,000 metric tons per year BHK pulp mill in Indonesia; and a 100% interest in APRIL Fine Paper, which holds a 99.8% interest in Riau Andalan Kertas. Riaupaper operates a 350,000 metric tons per year uncoated wood-free paper machine physically integrated with Riaupulp and is constructing a second machine on the same site.

APRIL Fine Paper also holds a 49% interest in Asia Pacific Forest Products Pte. Ltd., a joint venture with UPM-Kymmene of Finland, which operates a 350,000 metric tons per year wood-free paper mill in Changshu and a stationery plant in Suzhou, both near Shanghai, China.