Interim Management Statement

Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000097051

Mondi plc
(Incorporated in England and Wales)
(Registration number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47

LSE share code: MNDI

As part of the dual listed company structure, Mondi Limited and Mondi plc
(together 'Mondi Group') notify both the JSE Limited and the London Stock
Exchange of matters required to be disclosed under the JSE listings
requirements and/or the Disclosure and Transparency and Listing Rules of the
United Kingdom Listing Authority.

Mondi Group: Interim Management Statement 7 May 2009

This statement provides an update on the Group's progress since the year ended
31 December 2008, based on management accounts up to end March 2009 and
estimated results for April 2009, and precedes the announcement on 5 August
2009 of the half-yearly results for the six months ending 30 June 2009.

Group Overview

The difficult trading conditions experienced in the latter part of 2008 have
continued into the first quarter of this year. The Group's underlying operating
profit for the three months to the end of March was similar to that of the
final quarter of 2008, with an improvement in the results from the Europe &
International Division offset by a decline in the South Africa Division.
Results were significantly below the comparable period for the prior year.

The Group continues to make good progress on the various initiatives taken in
response to the downturn, including delivering on the €180 million cost
reduction programme announced at the Full Year results in February, exiting
various higher cost operations, focusing on working capital management and
reducing capital expenditure. These efforts both build on Mondi's competitive
advantage in the markets in which it chooses to operate, and ensures the Group
remains well positioned to benefit when market conditions improve.

The Group remains in a sound financial position, with net debt at end of March
of around €1.62 billion, a decrease of around €70 million on the position at
the end of December 2008, taking into consideration a further circa €100
million spent on the two major capital projects in Poland and Russia. At the
end of March, the Group had just under €1.1 billion of undrawn committed debt
facilities.

Divisional Overview

Europe & International

Underlying operating profit was up on a weak fourth quarter of 2008, driven by
better performances from Bags & Specialities and Uncoated Fine Paper. To
balance weak demand across all businesses, around 127,000 tonnes of market
related downtime was taken in the first quarter, representing around 12% of
capacity and similar to the downtime taken in the final quarter of 2008. While
selling prices remain under pressure, decreasing input costs, notably wood,
waste paper, chemicals and other variable costs, together with the
restructuring actions taken in exiting higher cost capacity are helping to
offset the revenue pressures.

Underlying operating profit in the Uncoated Fine Paper Business was up on the
fourth quarter of 2008, although down on the comparable period in the prior
year. Results from the Russian operation were particularly strong, with
marginally improved domestic selling prices supported by good cost control.
Combined with decreasing pulp input costs at the non-integrated facilities,
this more than offset the impact of lower European selling prices (copy paper
down 3 % since the year end).

In the Corrugated Business trading remains extremely challenging. Weak demand
continues to put pressure on containerboard prices. Average recycled
containerboard prices in the first quarter were down around 33% on the
comparable period in the prior year, and by the end of the quarter prices were
down around 10% on those at the year end. Similarly, virgin containerboard
prices are down around 10% since the beginning of the year. Results from our
Polish operations continued to be impacted by the strong Polish zloty as the
business delivered into forward currency contracts taken out under the Group's
six month's rolling hedge programme. Under this programme, the weakening of the
Polish zloty seen at the end of 2008 and into early 2009 will start to benefit
the business late in the second quarter.

The Bags & Specialities Business was strongly up on a very weak fourth quarter
of 2008 on better volumes, strong cost control and a good performance from the
consumer flexibles segment. The Business continues to be affected by weak
demand in kraft paper and industrial bags with pricing now being impacted,
although there has been some recent pick up in order books since the lows
reached over the December 2008 - January 2009 period, when destocking appeared
to be at its height. Significant market related downtime was taken in the
quarter to balance inventories, albeit at lower levels than seen in the final
quarter of 2008., The previously announced mothballing of two of the higher
cost kraft paper machines in the Group (Stambolijski and Dynas PM5) will become
effective towards the end of the second quarter, reducing the Group's fixed
cost base in the second half of 2009. Profitability in the Specialities
Business unit has improved since the fourth quarter of 2008 on the back of a
strong performance from the consumer flexibles segment driven by lower plastic
resin input costs and stable pricing.

South Africa Division

First quarter underlying operating profit in the South African Division was
marginally above the comparable period last year, but significantly down on the
fourth quarter 2008, impacted by lower pulp, woodchip and uncoated fine paper
export prices together with lower woodchip export volumes. The domestic prices
for uncoated fine paper continue to hold up, although there are signs of
softening volumes. Open market pulp prices appear to be stabilizing, albeit at
low levels, with the re-emergence of buyers from China.

In April agreement was reached on the settlement of a further seven land claims
in South Africa. Structured around the initial Mondi land claims model as a
sale and leaseback agreement, Mondi retains ownership of the forests whilst
meeting the needs of the land restitution process in South Africa.

Mondi Packaging South Africa (MPSA)

Underlying operating profit is well below the comparable period last year and
the fourth quarter of 2008 as lower sales volumes and increasing input costs
are only partially offset by higher selling prices and additional cost savings.
The fourth quarter comparison is also impacted by seasonal variances, with the
second half traditionally stronger than the first.

Merchant and Newsprint

To date Europapier is performing well below the comparable period in the prior
year due to lower sales volumes and prices, exacerbated by the weakening of
certain of the emerging European currencies in which it trades. Shanduka
Newsprint continues to hold up well, although there is some evidence of
softening demand in its domestic market, while Aylesford Newsprint has
benefited from significantly improved pricing on its annual contract business
(up around 19% in Sterling terms), although possible demand weakness and rising
input costs remain a concern.

Input Costs and Currency

Generally there has been easing of key input costs, notably wood, recovered
paper, pulp, energy and chemicals. Importantly, results continue to benefit
from Mondi's ongoing focus on cost reductions, restructuring and productivity
improvements, all of which help to mitigate the impact of the weaker markets.
Mondi remains on track to achieve the cost savings target set for the year of €
180 million.

The weakening of the major eastern European currencies witnessed towards the
end of 2008 and into early 2009, notably the Polish zloty and Czech koruna,
will have a positive impact on the results of our eastern European production
base, although the effect is delayed due to the Group's rolling six month
currency hedging programme. Conversely, the recent strengthening of the South
African Rand will put pressure on margins on export sales from the South Africa
Division.

Restructuring

The actions announced at the Group's Full year results in February of this year
taken in response to the economic downturn are on schedule. We have completed
the divestment of three corrugated converting operations in France for total
proceeds of approximately €20 million, while the restructuring of the Turkish
corrugated business, the Coatings business in Finland and the UK, and the
Consumer Flexibles business in Austria is on track. Similarly, as mentioned
above, procedures are in place to mothball the Stambolijski mill and Dynas PM5
paper machine by the end of the second quarter. Once complete, these closures
will have seen Mondi exit around 600,000 tonnes of higher cost paper capacity
in Europe (around 14% of the Group's European paper production capacity) over
the eighteen month period since the beginning of 2008.

Additional recently initiated measures to rationalise the Group's western
European footprint include the closure of a corrugated plant in the UK and four
bag converting plants across Europe. Furthermore, in April, we reached
agreement to dispose of our two remaining corrugated packaging plants in France
for an enterprise value of around €45 million. The above measures will have the
effect of adjusting the Group's production capacity in light of the changing
demand environment, lowering its overall cost base and streamlining its asset
portfolio to focus on those businesses that provide Mondi with sustainable
competitive advantage in its respective markets. Restructuring and impairment
costs related to these activities and recorded as operating special items in
2009 are expected to amount to circa € 60 million.

Major Projects and Capital Expenditure

In addition to the above measures, we remain committed to completing the
development of our two major projects in Poland and Russia, which will serve to
further secure the Group's position as a cost leader in its chosen markets. The
project to build the new 470,000 tonne recycled containerboard machine and
related box plant at Swiecie in Poland, at a total cost of €350 million, is
progressing well. Mondi remains on track for completion in the second half of
2009 within the budgeted cost. We anticipate that this machine will have the
lowest operating cost of its type. The project to modernise the Russian mill
(total cost of €525 million) is also making good progress and remains on track
for completion within the budgeted cost in 2010. The key objectives of the
project are to lower the Group's cost base in Russia, improve efficiency,
increase energy production and revenue by selling surplus energy to the grid as
well as providing limited extra capacity (both pulp and paper) for the domestic
market.

The previously announced initiatives to curtail capital expenditure outside of
the two major projects (new capital expenditure approvals limited to 40% of
depreciation) are ongoing and benefits in cash flows are already being seen.

Borrowings and Finance Charges

As at the end of March, net debt was around €1.62 billion, a decrease of €70
million on the position at the end of December 2008 despite a further circa €
100 million spent on the two major projects. Working capital management
continues to be a key focus of the Group, and further working capital inflows
were achieved in the quarter following a strong performance over the last two
years. Proceeds from asset disposals (circa €14 million) and foreign exchange
adjustments have also contributed to the strong cash flow performance.

At the end of March, the Group had just under €1.1 billion of undrawn committed
debt facilities and the average maturity of the Group's committed debt
facilities was 3.4 years. In accordance with Group accounting policies,
interest attributed to the major capital projects is currently being
capitalized to these projects. Combined with falling interest rates, this
should lead to a reduction in finance charges for the full year compared to the
prior year.

Summary

Despite some evidence that the rapid de-stocking, which started in the fourth
quarter of 2008, is coming to an end, there remains a high level of global
economic uncertainty. This will undoubtedly continue to create challenges for
the remainder of 2009. In this fast changing economic environment we have acted
early and decisively to reduce capacity, lower the overall cost base and
optimise cash flows. These actions coupled with Mondi's sound financial
position and low cost, high quality asset base will leave us well placed to
benefit when market conditions improve.

This statement is being released on the day of Mondi Group's Annual General
Meetings to be held simultaneously in Johannesburg and London, details of which
can be found on the Group's web site www.mondigroup.com.

End

Contact details:

Mondi Group                                                                    
                                                                               
David Hathorn             [phone]                                      
                                                                               
Andrew King               [phone]                                      
                                                                               
Lisa Attenborough         [phone] / [phone]                  
                                                                               
Financial Dynamics                                                             
                                                                               
Richard Mountain          [phone] / [phone]                  
                                                                               
Louise Brugman            [phone] / [phone]                    

Editors' notes:

Mondi is an international paper and packaging group and in 2008 had revenues of
€6.3 billion. Its key operations and interests are in western Europe, emerging
Europe, Russia and South Africa.

The Group is principally involved in the manufacture of packaging paper and
converted packaging products; uncoated fine paper; and speciality products and
processes, including coating, release liner and consumer flexibles.

Mondi is fully integrated across the paper and packaging process, from the
growing of wood and manufacture of pulp and paper (including recycled paper) to
the converting of packaging papers into corrugated packaging and industrial
bags.

Mondi has production operations across 35 countries and had an average of
33,400 employees in 2008.