Nippon Paper responds to summer power shortages with reduction in purchased electricity; raise in-house power

TOKYO, May 9, 2011 (Press Release) - Nippon Paper Group, Inc. (President: Yoshio Haga) today announced that it will work to decrease purchased electricity, as detailed below in response to expected summer power shortages in the areas served by Tokyo Electric Power and Tohoku Electric Power due to the East Japan Great Earthquake

Achieving a 25% Reduction in Purchased Power

The Nippon Paper Group will decrease purchased electricity through the full operation of in-house power generating facilities at the main mills of key Group companies Nippon Paper Industries Co., Ltd. (President: Yoshio Haga) and Nippon Daishowa Paperboard Co., Ltd. (President: Hironori Iwase). Doing so will enable a 25% year-on-year reduction of peak purchased electricity across the entire Group.

Considering the Supply of Electricity

In response to requests from Tokyo Electric Power Co., Inc. and Tohoku Electric Power Co., Inc. to be supplied electricity, the Nippon Paper Group is considering the transmission of electricity to the two utilities by supplying surplus electricity after the full operation of its in-house power generating facilities as well as by resuming the operation of idled power generating facilities. Details including the starting time, duration and volume of electricity to be supplied will be determined through future talks with the two utilities.

• Sites Serviced by Tokyo Electric Power

Nippon Daishowa Paperboard Soka Mill (Soka-shi, Saitama)

Nippon Daishowa Paperboard Yoshinaga Mill (Fuji-shi, Shizuoka)

• Sites Serviced by Tohoku Electric Power

Nippon Paper Industries Iwanuma Mill (Iwanuma-shi, Miyagi)

Nippon Paper Industries Nakoso Mill (Iwaki-shi, Fukushima)

Nippon Daishowa Paperboard Akita Mill (Akita-shi, Akita)