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 27 October 2009

This statement provides an update on the Group's progress since the half-yearly
report for the six months ended 30 June 2009, based on management accounts up
to end September 2009 and estimated results for October 2009. Full year results
for the year ending 31 December 2009 are expected to be announced on 23
February 2010.

Group Overview

In line with expectations, the Group's underlying operating profit in the
third-quarter of 2009 came in modestly below that of the second-quarter of
2009. The expected benefits of the actions taken to restructure the cost base,
now largely complete, are being seen in the results. While volumes in most
areas of the business continue to recover from the lows reached earlier this
year, this has been offset by lower average selling prices for the majority of
the Group's products. Price increases have recently been announced in most of
our key European packaging grades.

The Europe & International Division continues to perform well. Underlying
operating profit for the third-quarter was similar to that of the
second-quarter. Pleasingly, we have seen good post summer seasonal pick up in
demand. Price increases have been announced across all the main packaging paper
grades, partly driven by increasing input costs (notably pulp, waste paper and
wood costs). Many of these increases have come too late to materially impact
current year performance, but support our view that prices in the packaging
grades have bottomed out. We continue to make good progress on restructuring
and cost savings initiatives.

The South Africa Division continues to face challenges from a combination of
softer volumes, cost pressures and weak export prices, exacerbated by a very
strong Rand (up around 17% versus the Euro and 22% versus the Dollar since the
beginning of the year). This resulted in a further deterioration in underlying
operating profit from levels seen in the second-quarter. Good progress
continues to be made in restructuring the cost base, which will provide some
support in the face of the ongoing difficult trading conditions.

Divisional Overview

Europe & International

The Uncoated Fine Paper Business continues to perform well in the current
economic climate, although underlying operating profit for the third-quarter
was down versus the second-quarter due to a combination of the seasonally
weaker summer months and the impact of marginally lower prices (down 2% on
average versus the previous quarter) exacerbated by a weaker Russian rouble and
rising pulp input costs. While pricing to date has held up well, supported by
further industry capacity rationalisation announced in the quarter, it is still
too soon to conclude on the full impact of the new 500,000 tonnes per annum
uncoated fine paper machine from Portucel, which came on stream during the
quarter.

In the Corrugated Business unit volumes continue to improve, albeit off a low
base, and while average prices in the quarter were below those in the first
half, there have been notable positive pricing developments in recent weeks. In
recycled containerboard, while average third-quarter testliner prices were
around 13% lower than those of the first-half, price increases amounting to
circa 50% were announced in September and October. Similarly, while kraftliner
prices were down on average 12% versus the first-half, increases of circa 25%
were announced in September. The actual price increases achieved and the timing
thereof is dependent on ongoing negotiations with our customers. Market related
downtime in the third-quarter was negligible in comparison to that in both the
first-half and comparable period. The downstream corrugated operations have
seen some improvement in operating margins, benefiting from the paper price
declines as box prices have largely stabilised, although the ability to retain
these margins in the wake of the recently announced paper price increases is
not yet clear.

In September Mondi saw the first saleable production from its new lightweight
recycled containerboard paper machine in Swiecie, Poland. Start-up costs on the
machine were capitalised through until the end of September. It is anticipated
that the project will have a marginal effect on underlying operating profit in
2009.

In the Bags & Specialities Business third-quarter underlying operating profit
was up on the previous two quarters on better volumes, strong cost control and
a good performance from the specialities segment. This more than offset the
lower average kraft paper prices. Underlying operating profit was down versus
the strong comparable period. A sack kraft paper price increase of circa 12%
was announced in September, although this is only expected to impact margins in
the new year due to the extent of contracted and integrated volumes, and its
implementation is again dependant on the outcome of ongoing negotiations with
our customers. Order volumes for kraft paper have been firmer, with no market
related downtime in the quarter compared to around 86,000 tonnes in the
first-half and 117,000 tonnes in the prior year. Profitability in the
Specialities Business unit has improved from the comparable period driven by
resilient demand, lower plastic resin input costs and stable pricing. A €47
million investment in a new 50,000 tonnes per annum MG (machine glazed) paper
machine at the Steti mill in the Czech Republic has been successfully completed
on target and within budget. Production from this machine will be targeted at
fast growing niche applications, including the release liner and flexible
packaging markets as well as supplying customers previously served by the
20,000 tonnes per annum Ruzomberok kraft paper machine, which was closed in the
period.

South Africa Division

The South Africa Division has seen a continuation of the first-half's
disappointing performance, which in the third-quarter was exacerbated by
further strengthening of the South African Rand. Underlying operating profit
was sharply down on a strong comparable period a year ago, and down on the
first-half run rate. Significant Dollar market price increases since the
first-half in both pulp and African paper sales (excluding South Africa) were
offset by the strengthening Rand, resulting in lower Rand prices achieved
across all exported products. The domestic prices for uncoated fine paper
cut-size continue to hold up, with some indications of increased demand since
the first-half. White-top kraftliner price increases of circa 10% have been
announced in the European export markets, with the benefits expected to impact
only later in the year and into the new year.

Mondi Packaging South Africa (MPSA)

Underlying operating profit was above the comparable period last year and the
second-quarter of 2009, as lower corrugated sales volumes and increasing input
costs were offset by higher selling prices, additional cost savings and the
stronger South African Rand.

Merchant and Newsprint

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. Mondi Shanduka Newsprint
has been under pressure due to lower domestic demand and pricing pressures.
Aylesford Newsprint has benefited from improved pricing on its annual contract
business, although rising input costs and the structurally weak European
newsprint market remain a concern for the future.

Input Costs and Currency

There has been easing of input costs versus the comparable period in the prior
year. However, some key input costs are now rising. Benchmark European
recovered paper prices, while down around 34% on average in the third-quarter
versus the comparable period last year, have risen around 28% since the end of
the first-half of this year. Similarly, wood costs are also starting to
increase. 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 well 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, is
now benefiting the results of our eastern European production base due to the
impact of the Group's rolling six-month currency hedging programme. Conversely,
the continued strengthening of the South African rand is putting pressure on
margins on export sales from the South Africa Division. In addition the ongoing
weakness of the dollar is a concern in that it erodes the competitiveness of
European exporters whilst encouraging imports into Europe.

Major Projects and Capital Expenditure

We have made good progress in 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.

September saw the first saleable production from the new 470,000-tonne recycled
containerboard machine at Swiecie in Poland (total cost of €305 million). We
anticipate that this machine will have the lowest operating cost of its type.
Up to around 50% of its off take will be secured by physical integration with
the surrounding box plant network. Start-up of the machine is ahead of schedule
and the project will come in within budget.

The project to modernise the Russian mill at a total cost of €525 million is
also making good progress and remains on track for completion within the
budgeted cost in the second-half of 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 (with new capital expenditure approvals limited to 40%
of depreciation) are ongoing with benefits in cash flows clearly evident.

Borrowings and Finance Charges

Group borrowings have decreased since the end of June 2009, with trading
profits and working capital inflows partially offset by capital expenditure
primarily on the two major strategic expansion projects in Russia and Poland.
As at the end of September, net debt stood at circa €1.6bn, a decrease of circa
€50m since June. The Group has in excess of €1.0bn of undrawn committed debt
facilities, €0.8bn of which is available under a €1.55bn facility expiring on
22 June 2012.

Finance charges are expected to decline marginally in the second-half of 2009
due to the impact of lower interest rates, particularly in South Africa and
Russia (where abnormally high rates of interest were experienced in the
first-half of 2009).

Summary

Order inflows continue to improve in most of our key product areas, albeit off
a low base. Similarly, prices are improving in certain key product segments.
However, the impact of new uncoated fine paper capacity expected to come onto
the market later this year is still unclear. Furthermore, the extent of any
recovery is largely dependent on the pace and extent of the global economic
recovery, which remains uncertain.

We believe the decisive actions taken to reduce capacity, lower the overall
cost base and optimise cash flows, coupled with our high-quality, low-cost
asset base leave us well positioned to benefit as market conditions improve.

End

Contact details:

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

Conference call dial-in details

Please see below details of our operator assisted dial-in conference call that
will be held at 10.00 UK time and 12.00 SA time on Tuesday 27 October.

The conference call dial-in numbers are:

South Africa 0800 200 648 (toll-free)

UK 0800 917 7042 (toll-free)

Europe & Other 00800 246 78 700(toll-free) or 0041 916 105 600

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.