Re Contract

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

 

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 listing requirements
and/or the Disclosure and Listing Rules of the United Kingdom Listing
Authority.

 

Mondi signs contract for new lightweight recycled containerboard machine

 

Mondi Group ('Mondi') is pleased to announce that it has signed the delivery
contract with Metso for a new lightweight recycled containerboard machine with
a production capacity of up to 470,000 tonnes a year.

 

The signing of the contract is the latest stage in the project announced
earlier in 2007 to invest in a new lightweight recycled containerboard machine
in Emerging Europe.

 

Subject to agreement on the level of available governmental support, the
machine is expected to be sited either at the Swiecie mill in Poland or at the
Steti mill in the Czech Republic.  If it is decided to locate the machine at
Swiecie, it is planned that it will be owned and operated by Mondi Packaging
Paper Swiecie S.A., a 66 per cent held subsidiary.

 

The project will also include a new corrugated box plant with a capacity of up
to 250 million m2 per annum board production.  The total investment is
estimated at €350m and the project is due for completion in June 2009.

 

The new machine is expected to be the clear cost leader in Europe, combining
the benefits of the low operating cost environment in Emerging Europe with the
synergy benefits that come from utilising the infrastructure of an existing
mill and supporting sales and distribution structures.  Furthermore, it will
offer exposure to the high growth lightweight containerboard segment, supported
by the fast growing manufacturing sector in Emerging Europe.

 

 

                                    - Ends-                                    

For more information contact:

Mondi Packaging

Wolfgang Brunner

Phone: [phone]

 

Mondi plc

Lisa Attenborough

Phone: [phone]

About Mondi Packaging

Mondi Packaging, a member of the Mondi group, is a global paper and plastic
packaging group. The company is active in the corrugated, bag and flexibles
businesses and is a packaging specialist for containerboard, corrugated
packaging solutions, kraft paper, industrial bags, extrusion coating, release
liners and consumer flexibles solutions.

Mondi Packaging has more than 90 production facilities in over 30 countries.
Its 16,000 employees are dedicated to developing customized packaging solutions
for optimum protection and promotion of its customers´ products.

About Mondi

Mondi is an integrated paper and packaging group founded in South Africa in
1967.  In 2006 it had revenues of €5.751 billion.  Its key operations and
interests are in Western Europe, Emerging Europe and South Africa.  Mondi is
principally involved in the manufacture of packaging paper, converted packaging
products (including corrugated packaging, bags and flexible packaging) and
office paper.

Mondi is integrated across the paper and packaging production process from the
growing of wood for pulp production and the manufacture of pulp and paper to
the conversion of packaging papers into corrugated packaging and industrial
bags.  It also has a growing flexibles business focused on the production of
release liner, extrusion coating and consumer flexibles products. Mondi has
production operations in 112 locations across 34 countries and averaged
approximately 34,000 employees in 2006.