The Paper Products Ltd

Q4 Net sales up by 20.5% and

12 Months Net Sales up by 13.8%

Mumbai, January 29, 2008: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its audited Financial Results for the year ended December 31, 2007. The company achieved sales of Rs.153.27 crores during Q4-2007, growth of 20.5%, over sales of Rs.127.22 crores in Q4-2006. The profit before extraordianry, exceptional items & tax is Rs.11.15 crores and Rs.9.26 crores in Q4-2006. The basic and diluted earnings per share excluding extraordinary & excpetional items is Rs.1.47 as compared to Rs.1.21 in Q4-2006.

In comparison with the last year, Net Sales were Rs.570.59 crores during the year, a growth of 13.8% over Net Sales of Rs.501.21 crores in 2006. The profit before extraordinary, exceptional items & tax is Rs.33.78 crores and Rs.42.82 crores in previous year..

The basic and diluted earnings per share (EPS) excluding extraordinary & exceptional items for the year is Rs.4.89 as compared to Rs.5.35 in the last year. Basic and diluted earnings per share (EPS) including extraordinary & exceptional items for the year is Rs.4.53 as compared to Rs.6.37 in the last year.

The Board of Directors have recommended a dividend of Rs.1.80 per equity share of the face value of Rs.2 each fully paid up.

Consequent to shareholders approval, subdivision of equity shares from one equity share of Rs.10 each to 5 shares of Rs.2 each has been completed during the year. Consequently, the number of outstanding shares and EPS have been recast.

Reconstruction of Thane Plant is ongoing.

The new plant at Rudrapur in the state of Uttarakhand which commenced commercial production in Q1-2007 has achieved satisfactory capacity utilization during the quarter.

High raw material prices and appreciation of Rupee vis a vis US $ have lead to margin pressure. The company is implementing strategies to recover margins and with the growth in the consumer economy believes the medium term outlook to be positive.

About The Paper Products Limited (HUHTAMAKI-PPL):

PPL is India's leading manufacturer of primary consumer packaging with 2007 gross sales of Rs.640 crores, and net capital employed of about Rs.310 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 Britannia, Cadbury, Castrol, Coca Cola, Dabur, Emami, Eveready, GSK, Godrej, Hindustan Latex, Hindustan Unilever, HPCL, ITC, 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