The Paper Products Ltd

Q1 Performance

Net Sales up by 14.8%

PAT up by 24.6%

Mumbai, April 28, 2006: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the Quarter ended March 31, 2006. The company achieved net sales of Rs.116.1 crores during the quarter representing a growth of 14.8%, over sales of Rs.101.1 crores in the quarter ended 31st March 2005. Continued focus on the company's innovation program NASP "New Applications Structures and Products & Processes" helped to achieve better sales. The profit before tax for Q1 2006 is Rs.11.05 crores as compared to Rs.8.29 crores in the Q1 2005. Profit after tax for Q1 2006 is Rs.7.85 crores as compared to Rs. 6.30 crores in the Q1 2005. The basic and diluted earnings per share for the Q1 2006 is Rs.6.26 as compared to Rs.5.03 in the Q1 2005.

As announced earlier the company has decided to set up a production facility in North India at a cost of Rs.65 crores over a 2 year period. Work on project is progressing as per schedule. Required provision has been made.

Detailed claim assessment process is going on in respect of impact ot Thane plant due to floods caused by incessant heavy rains at Thane & Mumbai on 26th July 2005.

About The Paper Products Limited (HUHTAMAKI-PPL):

PPL is India's leading manufacturer of primary consumer packaging with annual gross sales of about Rs.500 crores, and net capital employed of about Rs.219 crores.

Since 1999, PPL 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, 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, 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 5024 (D) Board: 2534 3691- Ext. 172 Mobile 98216 04825