Nippon Paper Group, Inc. has set up the emergency committee regarding the earthquake of March 11, 2011. Following is the Group's situation the Company pieces out so far.

# Kushiro Mill, Nippon Paper I ndustr ies Co., Ltd.
No damage.
Operation is as normal.

# Hokkaido Mill, Nippon Paper Industries Co., Ltd.
No damage.
Operation is as normal.

# Ishinomaki Mill, Nippon Paper Industries Co., Ltd.
Operation is stopped.
There is a lot of soil, sand and so on inside the Mill caused by Tsunami.

We are investigating equipment damage of the Mill.
There is information that an employee was injur ed, however we have not confirmed it yet. Almost all stock in the Mill seems to be damaged.

# Iwanuma Mill, Nippon Paper I ndustr ies Co., Ltd.
Operation is stopped.
Presumably any employee is not injured.
There is information that ceiling was collapsed, however the detail is not confirmed.
We are investigating equipment damage of the Mill.
Half of stock in the Mill seems to be damaged.

# Nakoso Mill, Nippon Paper Industries Co., Ltd.
Operation is stopped.
Presumably any employee is not injured.
We are investigating equipment damage of the Mill.
Half of stock in the Mill seems to be damaged.

# Fuji Mill, Nippon Paper Industries Co., Ltd.
A few machines were stopped. But soon we will restart the oper ation.

# Akita Mill, Nippon Daishowa Paperboard Co., Ltd.
Operation is stopped.
We have no expectation to restart.

# Others
Bothe in Sendai-Port and Tokyo-Ariake-Port there seems to be some damages. Regarding Iwakuni Mill, Yatsushiro Mill and other mills, ther e is no damage and operation is as normal. But there is a concern that some problems regarding material procurement and product transportation will happen in some mills. From now on we do our best to confirm all employee's safety and damage of equipment of mills.