The Paper Products Ltd

12 Months Performance

Net Sales up by 9.9%

Mumbai, January 31, 2006: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its Audited Financial Results for the year ended Decmber 31, 2005. The company achieved sales of Rs.432.86 crores during the year representing a growth of 9.9%, over sales of Rs.394.02 crores in the year ended 31st December 2004. 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 year 2005 is Rs.37.89 crores as compared to Rs.33.65 crores in the last year. The basic and diluted earnings per share for the year 2005 is Rs.22.07 as compared to Rs.19.23 in the last year. The Board of Directors have recommended a dividend of Rs.7 per share.

On comparison between quarters, the company achieved sales of Rs.115.07 crores during  the fourth quarter representing a growth of 11.6%, over sales of Rs.103.14 crores in the corresponding fourth quarter of 2004. The profit before tax is Rs.11.72 crores as compared to Rs.6.50 crores in Q4 last year. The basic and diluted earnings per share for the quarter is Rs.6.79 as compared to Rs.4.08 in the corresponding period last year.

Due to incessant heavy rains in Thane & Mumbai on 26th July 2005, the operations of Thane plant were affected. The operations of Thane Plant are recovering due to focused efforts. In the full 12 months results a charge of Rs.0.80 crores has been taken which represents management estimate of loss of stocks & fixed assets damaged (net of estimated insurance claim). Detailed process of claim assessment & settlement is going on.

During the quarter company has realised a profit of Rs.1.83 crores on sale of Transferable Developement Rights received as compensation for compulsory acquisition of a portion of vacant land at Thane Plant by Thane Municipal Corporation.

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. Detailed work on project designing has been completed & construction of buildings, procurement of machines have commenced.

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