The Paper Products Ltd

9 Months & Q3 Net sales up by 22%

PBT for Q3 down by 21% due to Forex Losses

Mumbai, October 24, 2008: The Paper Products Limited (HUHTAMAKI-PPL), India’s leading flexible packaging company, today announced its Unaudited Financial Results for the third quarter & the nine months ended September 30, 2008. The company achieved sales of Rs.508.15 crores during the nine months, representing a growth of 21.8% over sales of Rs.417.32 crores in nine months 2007. The profit before tax is Rs. 23.62 crores compared to Rs.22.63 crores in nine months 2007 showing growth of 4.4%. The basic and diluted earnings per share is Rs. 2.79 as compared to Rs. 3.06 in nine months 2007.

In comparison between quarters, the company has achieved sales of Rs.177.51 crores in Q3-2008 representing a growth of 21.8%, over sales of Rs.145.77 crores in Q3-2007.The profit before tax is Rs. 6.12 crores in Q3-2008 as compared to Rs.7.73 crores in Q3-2007. The basic & diluted earnings per share is at Rs. 0.65 in Q3-2008 as compared to Rs. 1.19 in Q3-2007.

A forex loss of Rs. 10.54 crores & Rs. 3.18 crores has been taken in above nine months 2008 & Q3-2008 results which also includes a book loss of Rs. 5.75 crores & Rs. 0.53 crores respectively, for mark to market valuation of forex contracts which have been entered into to hedge the forecast transactions, consequent to the ICAI announcement of 29th March 2008 on Accounting for Derivatives.

The new Rudrapur plant is operating at capacity levels.

Reconstruction of the Thane Plant is on going & relocation of operations in a phased manner is progressing as per schedule.

Unprecedented raw material price increases on all inputs have lead to a severe margin pressure. The company is implementing strategies to counter the resulting margin deterioration with a focused approach.

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 many more.

More at our website : www.pplpack.com

Mr. Ravi Chidambaram Controller - Finance & Joint CFO The Paper Products Limited Board: +91 - 22 - 2534 3691- Ext. 453 Mobile +91 - 98216 04825