Q1 2005 Performance of The Paper Products Ltd.
Sales Up by 4%

Mumbai, April 26, 2005: The Paper Products Limited (PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the first quarter ended 31st March 2005. The company achieved gross sales of Rs.115.9 crores in the quarter ended 31st March 2005. Excluding excise duty & sales tax amounting to Rs.14.8 crores, Net Sales during the quarter was Rs.101.1 crores representing a growth of 4% over Net sales of Rs.96.8 crores in the corresponding first quarter of year 2004. The profit before tax is Rs.8.29 crores as compared to Rs.9.34 crores in Q1 last year. The basic and diluted earnings per share for the quarter is Rs.5.03 as compared to Rs. 5.37 in the corresponding period last year.

The historically unprecedented increase in raw material prices mid 2004 driven by the surge in petrochemicals prices and stiff resistance from customers to selling price increases has affected topline and consequently bottomline in Q3 and Q4 2004 and the current quarter. In comparison with Q4 2004 results, while Net Sales for the quarter, Q1 2005, was 2% lower, the Profit before tax of Rs. 8.29 crores was higher than the Profit before tax of Rs.6.50 crores in Q4 2004. However, margins continue to be under pressure. Specific strategies are being deployed to arrest deterioration and bring positive reversal.

About The Paper Products Limited (PPL):

PPL is India's leading manufacturer of primary consumer packaging with annual gross sales at about Rs.454 crores, and net capital employed of about Rs.200 crores.

It is a joint venture with the global packaging major - Huhtamaki Oyj, Finland who hold about 59% of the equity capital. Huhtamaki is the world's sixth largest consumer packaging multinational.

PPL is the pioneer and the technology and market leader in Flexible packaging and Labelling, with manufacturing facilities at Thane, Silvassa and Hyderabad. It meets the packaging needs of almost the entire range of FMCG segments including personal products, personal wash, laundry, foods, sauces, beverages, bakery products, spices, chocolates and confectionery, dairy, etc.; and also for seeds, specialized chemicals, electronics and many other specific specialized uses including anti-spurious packaging.

The Package Protection and Decoration products range includes latest leading edge technologies - Shrink sleeves, Wrap arounds, Heat transfers, Pressure sensitives and Metallised Paper labels.

Manufacturing of specialized cartons and cartoning systems, manufacture of poly films, specialized barrier metallising and high-end application extrusion coating are also part of PPL's product offerings. The company's packaging machines division offers complete packaging solutions to customers.

PPL mainly caters to the premium segment of packaging and its clients include Amway, Amul, Britannia, Cadbury, Castrol, Coca-cola, Dabur, DS Group, Emami, Eveready, GSK, Godrej, Hindustan Latex, HLL, HPCL, Marico, MICO, Nestle, Perfetti, P&G, TTK-LIG etc. etc.

More at our website : www.pplpack.com

Mr. Ravi Chidambaram Controller - Finance The Paper Products Limited Tel: 2534 5021 (D) Board: 2534 3691- Ext. 172 Mobile 98216 04825