Mercer completes critical phase of green energy project at Celgar mill in BC

NEW YORK, Sept. 30, 2010 (Globe Newswire) - Mercer International Inc. today announced completion of an important milestone in the Green Energy Project at its Celgar mill.

The project is currently in the commissioning and optimization phase, and Celgar has completed a 72-hour performance test for its new turbine as required under its power purchase agreement with BC Hydro. The Company has submitted the test results and other required documentation to BC Hydro for approval of commercial operation status, pursuant to the terms of its agreement with them.

Following confirmation from BC Hydro that all necessary documentation has been provided, it is expected that commercial operation status under the EPA will be set retroactive to September 27th, and all power generation from that point will be recognized at Bioenergy rates.

Mr. Jimmy S.H. Lee, President and Chairman, stated: "We are pleased with the significant milestone achieved on this project and I would like to thank all of our employees, contributors and suppliers for a job very well done. I would also like to recognize the important contribution by the Canadian Federal Government through Natural Resources Canada."