Paperlinx soars as M-Real plans to fold plants.

Australasian Business Intelligence, October, 2006

Oct 19, 2006 (The Australian - ABIX via COMTEX) -- Australian paper manufacturer and merchant PaperlinX has reaped the benefits of a European rival's downsizing decision. M-Real has announced it will close three paper mills in a bid to save costs, and could make further divestments. The move is likely to put a ceiling under paper prices recently affected by an over-supply situation in the global market, and PaperlinX's stock rose as a result on 19 October 2006 to close $A0.16 higher at $A4.01. A side-effect could be a reduction of dumping of cheaper paper products in Australia by Asian groups that may now focus on Europe instead.

Publication Date: 20 October 2006

PAPERLINX LIMITED - ASX PPX

M-REAL CORPORATION

GOLDMAN SACHS JBWERE PTY...

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