NAMPAKSA’s Leading Packaging Company

Full Range of Packaging in Paper, Metal, Plastics & Glass

NAMPAK• Current Share Price: R23• PE: 15• Dividend Yield: 3.7%• New Top Management• Good Recovery- Sold off Dogs• Potential enhanced profit from Angolan Bevcan & local Corrugated• Good Potential if Rand weakens• Strong Share Price & Volume Movement since results announcement• Worth considering over long run

SAPPI Leading World Producer of Coated Fine Paper

•Other Paper Products: Newsprint, Uncoated, Speciality , Packaging •Wood Pulp•Chemical Cellulose

SAPPIProduct Range

Production: Mil Tonnes: Paper 6.8 Pulp 3.3 Chem Cellulose 0.8

Geographic Spread

• Sales 7.9 Mil Tonnes$6.6 Billion

SAPPI DEBT PROBLEM Millions Nett Debt: $2221 Finance Costs: $ 255

Debt by Currency: % $ 48.4 Eur 34.1 ZAR 17.5

Debt Covenants: •Nett Debt/EBITDA: < 6 •EBITDA/ Interest: > 2

Dividend Restriction: •Debt/EBITDA: >4:1•EBITDA/ Interest: <2:1•Dividend > 50% of Nett Profit

SAPPI SHARE INFO:

No of Shares: 516 Million

Market Cap: $2000 Million

Shareholders: 12% N America 13% Europe & Rest of World 75% SA

Major Shareholders: PIC: 8.4% OM 5.0%

Fund Managers: Allan Gray: 30% OM: 13% RMB: 8%

Share Price: 2/12/10: R35.20 P E: 47 YM: 6.0%

Strengths: •Good Geographic Spread – Rand Hedge•Good Assets & Product•Technically Competent•SA Profitable•Saiccor Strength

Weaknesses: •Over Capacity in Paper Industry – Selling Prices constrained•Advertising spend sensitivity•IT Innovations threaten Paper usage•Debt Burden•Rising Input Costs: Energy

Currently: •Improved Pulp Prices•Paper Prices following •Strong demand•Mills full