<p><B>Sappi Taking Further Downtime</B>

Last month Sappi, a large paper producer, took coated paper production downtime to adjust inventory. The company expects to take further downtime during the fourth quarter of the year to bring supply and demand back into balance.

To spread the impact of the curtailment across its pulp system and its suppliers Sappi will take an equivalent curtailment across its own pulp production system this month and next month. Some of the curtailment will be normal maintenance curtailment and some will be commercial curtailment. In total, Sappi's internal paper and pulp production will be reduced by about 30,000 tons this quarter.