<B>Visy Group Acquires Southcorp Packaging Business</B>

Southcorp. Ltd. announced the sale of its Asia Pacific Packaging business to the Visy Group, an Australian-based operation.

Southcorp's North American Packaging operations do not form part of this sale. A separate process is being conducted in relation to these operations with completion expected this financial year.

In total the Packaging business has a book value of around $460 million, with Asia Pacific representing around $360 million and North America the rest.

“Our existing Australian recycling, paper making and corrugated packaging operations are performing extremely well and our US operations are now well established and making a major contribution. So the time is right for us to seek new opportunities. Merging Southcorp Packaging with our existing packaging operations is an outstanding opportunity and we look forward to welcoming Southcorp Packaging employees into the Visy family,” said Richard Pratt, Visy’s chairman..