JELENIA GORA, Poland, Jan. 25, 2007 (Press Release) - We have a pleasure to announce that in December 2006 PMP successfully finished the first stage of PM#1 press section modernization for Arctic Paper Kostrzyn which is one of Europe's leading companies in the field of high-quality, graphic fine paper.

PM#1 speed is 700 mpm and the width is 5,300 mm. The machine produces newsprint & writing papers.

The first stage was focused on the press section modernization and it was carried out according to the time schedule. PMP modified the configuration of the unit's second press and at the same time the new press rolls were installed.

PMP also signed the contract for the second stage of PM#1 modernization. This time it will be the modernization of 1st dryer group to increase drying capacity. These two sections of the paper machine will be adjusted to higher working speeds to enable the machine capacity increase in the future. The delivery and start-up of the second stage are scheduled for year 2007.