First Corporate Forestry Land Deal Signed

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.

16 October 2008

FIRST CORPORATE FORESTRY LAND DEAL SIGNED

Mondi, the Regional Land Claims Commission (RLCC) and the Kranskop communities
of AmaHlongwa and AmaBomvu have signed a land restitution settlement relating
to Mondi forestry land. The agreement provides for the transfer of over 4000
hectares of Mondi land to the two communities. The communities will get title
to the land, which will be leased back to Mondi. Mondi has entered into a 20
year lease agreement with the communities to enable the continued supply of
timber to Mondi's mills. This is South Africa's first forestry related land
restitution settlement agreement involving a corporate land owner.

This agreement sets an industry precedent by:

  * creating a sustainable working model of Community Trusts;
   
  * ensuring the communities receive an ongoing annual income;
   
  * introducing the communities into Mondi's supply chain by transforming them
    into approved suppliers;
   
  * ensuring a transfer of skills and the increased involvement of community
    members in the forestry business.
   
The South African Government welcomes the settlement, which establishes an
industry template that can be used by other companies as a framework for
settling future forestry land claims.

"This is very good news for South Africa and for all parties involved in these
settlements. Mondi is convinced that the land restitution process is necessary
and we will continue to engage with government and communities to find
sustainable solutions", David Hathorn, Group CEO of Mondi.

"We are very pleased that a settlement has been reached with the community on
terms which ensure real empowerment of new farmers and a continued fibre supply
for our business," said Viv McMenamin, Mondi South Africa's Forestry and
Transformation Director. "This model and approach set the standard for
equitable land restitution agreements that are commercially sustainable and
beneficial for all parties."

Notes to the editor

About the agreements:

 1. The key elements of the agreements signed today are:
   
  * A sale agreement stating that the land, and some immovable properties on
    it, will be bought from Mondi by the RLCC for the communities at a value of
    approximately R20,5m.
   
  * Two similar lease agreements were signed between Mondi and the two
    Community Trusts.
   
  * A settlement agreement was signed by all three parties which spell out the
    terms and governance of the relationship.
   
  * The land will be owned by the two communities through the Siyathokoza and
    Eyethu Trusts.
   
  * The land will be leased back to Mondi and will continue to produce timber
    for use by Mondi's mills.
   
  * The lease agreement, structured over a 20 year period, provides for
    community income from annual rental and a stumpage fee based on production
    output, whilst providing a continued timber supply for use in Mondi's
    mills. The agreement will also ensure progressive involvement of
    communities in the forestry business over the same period.
   
  * Mondi will provide annual bursary opportunities via its existing bursary
    scheme for two community members per claim to study forestry at tertiary
    institutions.
   
  * With Mondi's assistance, the Community Trusts have set up community owned
    businesses, currently engaged as contractors in the forestry operations.
    Some 50 people are employed to develop opportunities in the forestry value
    chain. Development, mentoring and coaching support is included for these
    businesses as part of the agreement.
   
  * Mondi has made an ongoing financial commitment to training, coaching,
    mentoring and start-up costs for the Community companies, including
    vehicles and equipment.
   
  * FIETA (Forestry Industry Education and Training Authority) has also partly
    funded training of Trustees, company directors and employees.
   
About Mondi:

Mondi is an international paper and packaging group and in 2007 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 specifically products and processes, including coating, release liner
and consumable flexibles.

Mondi is fully integrated across the paper and package process, from the
growing of wood and manufacturer of pulp and paper (including recycled
material) to the converting of packaging papers into corrugated packaging and
industrial bags. Mondi has production operations across 35 countries and had an
average of 35 000 employees in 2007.

Contact:

Kerry Crandon

Group Communications Manager

Mondi

Tel:       [phone]

E-mail: [e-mail]

www.mondigroup.com

Louise Brugman
PR Representative for Mondi

Financial Dynamics
Tel: [phone]

Email: [e-mail]

www.fd.com


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