News Release

Japan Pulp and Paper Company Limited (JP) hereby announce that the Corelex Holdings Company Limited will become a subsidiary following JP’s acquisition of a 67% share in the holding company on April 1, 2011. Accordingly, subsidiary companies of Corelex Holdings, including San-ei Regulator Company Limited, Doh-ei Paper Manufacturing Company Limited, Shin-ei Paper Manufacturing Company Limited and San-paper Company Limited, will also become a part of the JP Group.

In December 2009, the JP Group agreed to enter into a capital and business tie-up with the San-ei Group and has maintained a business alliance predominantly concerning the latters household paper business activities. At the time, discussions were held regarding a capital tie-up in exchange for shares which resulted in a restructuring of the four San-ei Group companies’ management systems and the establishment of a new holding company in February 2011, through a transfer of each company’s equity. That new holding company, Corelex Holdings, is the subject of this announced acquisition by the JP Group today.

The Corelex Group, headquartered in Shizuoka prefecture, has domestic operations in Shizuoka, Kanagawa, Yamanashi and Hokkaido prefectures as well as an overseas manufacturing site in Vietnam and is involved in a variety of business activities including the manufacture and sale of household paper products, which include recycled toilet and tissue papers. In the recycled toilet paper sector in particular, the Corelex Group boasts a large share of the domestic market due to its superior wastepaper recycling technologies and product development activities that have spawned original products such as its coreless range of toilet paper rolls.

The JP Group has long been involved with the supply of the wastepaper raw materials used by the Corelex Group and also the sale of the paper products that it subsequently produces. By bringing the Corelex Group under the JP umbrella this April, the JP Group will be able to increase its influence on and strengthen its sales capabilities in the household paper market. Furthermore, this will also give the JP Group the opportunity to realize increased synergies in its resources and environment-related business activities as it strives to further increase the efficiency of its overall operations.