Division of the Company

Hostinné, 23^st April 2008

Information for business partners

We would like to announce that effective 1^st May 2008

KRKONOŠSKÉ PAPÍRNY a.s.
Registered Office
Nádražní 266
Hostinné 543 71

And registered with the Regional Court of Hradec Králové under sector B, entry 583, registration number 45534284, will reconstruct its business activities according to the regulations covered by S 69c(2) and S 220r up to 220za of Act No. 513/1991 Coll., the Czech Republic Commercial Code, as amended.

There will be no cessation of the separated company’s business activities during or after the separation of the company acquisitions, neither will it affect the rights and obligations of employees as these will be transferred to acquiring companies.

The acquiring companies affected by this company separation after the transfer of the separated companies equity, employee rights and obligations and after the appropriate registration in the trade register are:

KRPA DEHTOCHEMA, a.s., registered office in Svoboda nad Úpou, Nádražní 450, postal code 542 24, company reg. number 27537749, registered in the Trade Register kept by Regional Court in Hradec Králové, Section B, Entry no. 2764.

KRPA ENVELOPE, a.s., registered office in Hostinné, Nádražní 266, postal code 543 71, company reg. number 27537765, registered in the Trade Register kept by Regional Court in Hradec Králové, Section B, Entry no. 2765.

KRPA FORM, a.s., registered office in Dolní Branná 122, postal code 543 62, company reg. number 27537811, registered in the Trade Register kept by Regional Court in Hradec Králové, Section B, Entry no. 2766.

KRPA INVESTMENT, a.s., registered office in Plzeň, Zahradní 173/2, postal code 304 90, company reg. number 28014111, registered in the Trade Register kept by Regional Court in Plzeň, Section B, Entry no. 1431.

KRPA PAPER, a.s., registered office in Hostinné, Nádražní 266, postal code 543 71, company reg. number 27537820, registered in the Trade Register kept by Regional Court in Hradec Králové, Section B, Entry no. 2767.

The acquiring companies would take over the business activities of the separated company and would continue the business activities of that company.

We would ask you to kindly take note and record these changes and especially to ensure that the correct company name and registration numbers etc are shown clearly on all commercial documentation sent to us after the 30^th April 2008, otherwise we may be forced to reject any such document shown any discrepancy.

We would take this opportunity to assure you that this reconstruction and separation of our company will not in any way affect our good business relationship as all obligations and liabilities and rights will be continued by the acquiring companies.

Thank you for your assistance in this matter.

Yours faithfully,

Ing. Jaroslav Jiřička
Chairman of the Board of Directors