June 25, 2014
FOR IMMEDIATE RELEASE
Kokusai Pulp & Paper Co., Ltd.
President & Chief Executive Officer: Madoka Tanabe(For inquiries)
Corporate Planning Division
Senior Executive Officer: Akihiko TetsumotoTel. 03 (3542) 4166

Announcement of Establishment ofJoint Venture Company in China
Kokusai Pulp & Paper Co., Ltd. (hereinafter, the “Company”) is pleased to announce
that it has concluded an agreement to establish a joint venture company incollaboration with

New Hope Liuhe Food Holdings Limited (hereinafter, “New Hope

Liuhe Food”) of Sichuan, China and Fuji Tokushu Shigyo Co., Ltd. (hereinafter“Fujitoku”), effective June 20, 2014.

1. Background of establishment of joint venture company
Amid rising consumer concern regarding food safety and security in China today, higher
quality is increasingly being required for food packaging materials from an environmental
perspective as well. New Hope Liuhe Food, with the fourth largest domestic market share in
the ham and sausage business, should continue to see significant growth in its food businessin the future. The Company has offered New Hope Liuhe Food the use of nylon casing shrinkfilm, which is Fujitoku’s mainstay environmentally friendly product, as part of the growthstrategy for the Chinese company. New Hope Liuhe Food believes that the introduction ofnylon casing shrink film into its packaging process will serve as a significant advantage inenabling it to achieve further expansion in the extensive Chinese market. The threecompanies have concluded the agreement as a result.

2. Purpose of establishment of joint venture company(Bolstering the packaging material business and business expansion in China)
The Company has launched a long-term management plan, “GIFT+1 2024,” which focuseson the expansion of business areas and the development of overseas markets. In particular,

the expansion of the packaging business and the enhancement of the value chain in China
are regarded as the most important management agenda items for the Company to address.
3. Outline of joint venture company
成都新国富包装材料有限公司(1) Name*The Chinese names of the joint venture companies in thisreport are official. The English names have yet to be determined.
(2) Business

Production and sales of nylon casing shrink film and related
packaging materials(3) Date of establishment

October 2014 (planned)(4) Paid-in capital

CNY100 million(5) Share ownership

Kokusai Pulp & Paper Co., Ltd.: 40%
New Hope Liuhe Food Holdings Limited: 51%Fuji Tokushu Shigyo Co., Ltd.: 9%

4. Outline of related companies(1) New Hope Liuhe Co. Ltd.
(Parent company of
1. Address

New Hope Liuhe Food Holdings Limited)

376, Jinshi Road Jinjiang Industrial Park, Chengdu, Sichuan

2. Representative（President）Liu Chang

3. Paid-in capital

CNY1,737 million

4. Main business Feedstuff, livestock raising, meat processing, financial investment(2) Fuji Tokushu Shigyo Co., Ltd.
1. Address 3-143 Akatsuki, Seto, Aichi
2. Representative (President & CEO) Kimio Sugiyama
3. Paid-in capital

280 million yen

4. Main business Production and sales of food packaging materials and sales offood-related equipment
5. Impact on business results
The establishment of the joint venture company will have no impact on the Company’s
consolidated business results for the current fiscal year. Details of a possible impact to be
produced in association with the establishment of the joint-venture company on theCompany’s consolidated business results going forward will be announced as soon as theyare determined.