Unifiber extends contract deadline for MBBM pulp mill project

SINGAPORE, April 3, 2008 (Press Release) - The Board of Directors of United Fiber System Limited (Unifiber) wishes to make this follow-up announcement in relation to the finalization of the turnkey contract for the construction of the greenfield pulp mill in South Kalimantan, Indonesia. The Board had on 24 February 2008 announced that its wholly owned subsidiary PT Marga Buana Bumi Mulia (PT MBBM) had entered into a Turnkey Agreement with China MCC20 Construction Co. Ltd (MCC20).

According to the Agreement, within one month from the signing of the Agreement, both parties were expected to settle all the major pending items and the Board would make a further announcement upon the finalization of the Engineering, Procurement and Construction contract (EPC Contract) and the supplier’s credit agreement.

The Board wishes to update the shareholders that the finalization of the EPC Contract and the Supplier’s Credit Agreement is currently ongoing. Due to the magnitude and complexity of the pulp mill project, including the engagement by MCC20 of a European vendor for the main machinery and an Indonesian contractor for the civil works, as well as detailed technical specifications required, both parties have agreed that the EPC Contract and the Supplier’s Credit Agreement are now targeted to be executed before 11 April 2008. The Board will make a further announcement upon the execution of these contracts.

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