The Paper Products Ltd

9 Months Performance

Net Sales up by 11.6%

Mumbai, October 26, 2007: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the third quarter and the nine months ended September 30, 2007. The company achieved Net Sales of Rs.417.32 crores during the nine months, representing a growth of 11.6% over Net Sales of Rs.373.99 crores in the nine months of 2006. The profit before tax (PBT) & extraordinary & exceptional items is Rs.25.81 crores as compared to Rs.33.56 crores in the nine months of 2006.

Consequent to sharholder 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.

The basic and diluted earnings per share (EPS) excluding extraordinary & exceptional items is Rs.3.43 for the nine months ended 30th September, 2007 as compared to Rs.4.14 in the nine months of 2006. Basic and diluted earnings per share (EPS) including extraordinary & exceptional items for the nine months is Rs.3.06 as compared to Rs.5.16 in the nine months of 2006.

The new plant at Rudrapur in the state of Uttarakhand which commenced commercial production in Q1-2007 has achieved ramp up in sales during the quarter.

Key projects of specialized pouching at Silvassa and specialized printing line at Hyderabad have commenced production 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.

In comparison between quarters, the company achieved sales of Rs.145.77 crores during Q3-2007 representing a growth of 10.1%, over sales of Rs.132.34 crores in Q3-2006. The profit before tax & extraordinary & exceptional items is Rs.7.73 crores as compared to Rs.11.63 crores in Q3-2006. The basic & diluted earnings per share excluding extraordinary & exceptional items is Rs.1.19 as compared to Rs.1.59 in Q3-2006.

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 Britannia, Cadbury, Castrol, Coca Cola, Dabur, DS Group, Emami, Eveready, GSK, Godrej, Hindustan Latex, Hindustan Unilever, 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