<b>Mercer International Sells Hainsberg Facility</B>

Mercer International Inc announced that it has sold its Hainsberg Recycled Printing Paper facility. The total purchase price was $4 million, plus an amount equal to the net working capital associated with the Hainsberg facility. The Hainsberg facility has an annual capacity of approximately 30,000 metric tons.

Jimmy . Lee, chairman and president, commented, ``We are very pleased to have closed the sale of the Hainsberg mill. This is a significant step in executing our corporate strategy within the paper sector to focus our resources on the specialty paper markets and in particular on our wall paper base paper production.''

Lee concluded, ``In our pulp operations, the Rosenthal mill is running at full capacity, and conditions within the pulp market continue to look favorable, as producers adjust production to meet demand and inventory levels. The Stendal project is progressing on schedule and we expect all the requirements needed to obtain project funding commitments to be in place by early 2001. The project is scheduled to be completed by the end of 2003.''