Ilim Group Releases Results For January – September 2007

Over the first nine months of 2007, pulp and paper output by Ilim Group subsidiaries amounted to 1 mln 927.9 thousand tonnes, 2.4% up as compared to January – September 2006. Market pulp output went up 54.5 thousand tonnes (5%) to 1 mln 155.6 thousand tonnes. Board production was at 558.3 thousand tonnes, 1 thousand tonnes (0.1%) up year-over-year. Paper production totalled 197.3 thousand tonnes, 5.6 thousand tonnes (3%) down from the level of the past year. The drop in paper output is due to general halts, which were carried out earlier in the year as compared to 2006.

Pulping went up 44.1 thousand tonnes (2%) to 1 mln 890.6 thousand tonnes.

Over the first three quarters of 2007, Ilim Group logging companies logged 5.17 million cu metres of wood, 6.3% up year-over-year. Total raw wood supply by the company’s own subsidiaries was at 5 mln cu metres of wood, 7.4% up from the level of 2006. The share of raw wood supply by Ilim Group’s own logging companies was 48.7%. The correlation between inside and outside supply reflects the company’s plan to optimize raw wood supply based on the raw wood markets analysis.