<b>Mercer Sells Packaging Plant</B>

Mercer International Inc. sold its Trebsen packaging paper facility. The total purchase price was $8.5 million. As a result of this sale, Mercer International will record a one-time gain of about $100,000.

The Trebsen facility has an annual production capacity of approximately 75,000 metric tons. In 1999, the Trebsen mill contributed $17.8 million in revenue, and reported operating income of about $100,000.

Jimmy S.H. Lee, Chairman and President, commented, ``We are very pleased to have closed on the sale of the Trebsen mill. This is a significant step in executing our corporate strategy to focus our resources on the specialty paper market. Going forward, we will continue to concentrate our paper resources on this niche within the industry.''

Mr. Lee concluded, ``In our pulp operations, the ramp-up at Rosenthal continues as expected, and the mill is running at close to full capacity. Conditions within the pulp market continue to look favorable with pricing for benchmark NBSK pulp expected to reach $710 per metric ton in July. On the Stendal project, we are progressing towards meeting all the requirements needed in order to obtain project funding commitments, and still expect the project to be completed in 2003.''