Jefferson Smurfit Expands Geographic Reach Through Danish Acquisition

Business Wire, July 28, 2000

Business Editors

DUBLIN--(BUSINESS WIRE)--July 28, 2000

Jefferson Smurfit Group plc (the "Group" or "JSG") (NYSE: JS, Dublin: SMFT.I, London: SMFT.L), the geographically balanced paper-based packaging group, today announced that Smurfit International BV, a wholly-owned subsidiary of the Group, has agreed to acquire Neopac A/S ("Neopac"), a Danish corrugated operation, from Svenksa Cellulosa Ab ("SCA"). Neopac was formerly part of the corrugated operations of Metsa-Serla Oyj ("Metsa"), recently acquired by SCA. The agreement between JSG and SCA is subject to European Commission approval for the transaction involving SCA and Metsa. The total consideration for the Neopac acquisition is E 30 million which includes assumed debt.

The operations of Neopac comprise two corrugated plants with a combined annual production capacity of 65,000 tonnes. 2000 sales are projected to be approximately E 60 million. The Danish corrugated market represents approximately 350,000 tonnes. Following this acquisition, JSG will command a 17% market share.

Tony Smurfit, CEO of Smurfit Europe, noted that "each facility has a strong market position and a good reputation with it's customer base. Both are well maintained and consistent with our strategy of acquiring well invested assets. Denmark is primarily an export-oriented economy and the opportunities for corrugated demand growth are significant.

"This acquisition expands our geographic reach and is our first direct entry into the Danish market. The transaction also represents further progress towards the development of a fully integrated European containerboard system."

Jefferson Smurfit Group ADRs, each equal to ten ordinary shares, trade on the New York Stock Exchange under the ticker symbol JS. Jefferson Smurfit Group ordinary shares trade in Dublin and London, and information can be accessed on Bloomberg under the symbols SMFT.ID and SMFT.LN respectively and on Reuters under SMFT.I and SMFT.L. Additional information is available on Jefferson Smurfit Group's home page: http://www.smurfit.ie.