The Paper Products Ltd

Q1 Performance

Net Sales up by 12.2%

Board recommended subdivision of shares

Mumbai, April 27, 2007: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the quarter ended March 31, 2007. The company achieved Net Sales of Rs. 130.25 crores during the quarter, representing a growth of 12.2%, over Net Sales of Rs.116.07 crores in the Q1-2006. The profit before tax (PBT) is Rs.9.35 crores as compared to Rs.11.05 crores in the Q1 2006. The basic and diluted earnings per share (EPS) for the quarter is Rs. 6.17 as compared to Rs.6.26 in the Q1-2006.

As informed earlier the company has been setting up a production facility in North India in the State of Uttarakhand at a cost of Rs. 65 crores. The first phase of the project was commissioned & commerical production commenced in January 2007. The remaining facilities are being commissioned in a phased manner & the project is expected to be completed by end Q2-2007.

The pressure on margins due to high raw material prices & customer resistance to commensurate revision in selling prices has been countered by the company's innovation programme NASP "New Applications, Structures, Products and Processes" which has also driven the sales growth during the quarter. In view of the opportunities present in the economy & the strategic initiatives being implemented by the company the medium to long term outlook is positive.

In the previous quarter the Board of Directors had recommended dividing of one equity share of face value of Rs. 10 each fully paid-up into five equity shares of face value of Rs. 2 each fully paid-up.

About The Paper Products Limited (HUHTAMAKI-PPL):

PPL is India's leading manufacturer of primary consumer packaging with annual gross sales of about Rs.580 crores, and net capital employed of about Rs.266 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 one of the world's top ten consumer packaging multinationals.

PPL is a pioneer and the technology and market leader in flexible packaging in India with manufacturing facilities at Thane, Silvassa, Hyderabad and Rudrapur. 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 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 Amul, Britannia, Cadbury, Castrol, Coca-cola, Dabur, DS Group, Emami, Eveready, GSK, Godrej, Hindustan Latex, HLL, HPCL, Marico, MICO, Nestle, Pepsi, Perfetti, P&G, Tata Tea, TTK-LIG, Wipro and may more.

More at our website : www.pplpack.com

Mr. Ravi Chidambaram Controller - Finance & Joint CFO The Paper Products Limited Tel: +91 - 22 - 2534 5024 (D) Board: +91 - 22 - 2534 3691- Ext. 172 Mobile +91 - 98216 04825