Exhibit 99.4



|     |  |  |  |                                                                                                      
|---- |  |  |  | -----------------------------------------------------------------------------------------------------
|LOGO |  |  |  | C/ Berio no5 bajo Teléfono 943 11 58 00 - Fax: 943 11 68 72 e-mail: audiafgi@euskalnet.net 20303
IRUN

Independent Auditor Report

To the Stockholders of Corenso Tolosana, S.A.:

We have
audited the accompanying balance sheets of Corenso Tolosana, S.A. (the Company) as of December 31, 2006, 2005 and 2004, and the related statements of income for the years then ended, all expressed in euros. These financial
statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the financial statements taken as a whole based on our audit.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of Corenso Tolosana, S.A. as of
December 31, 2006, 2005 and 2004, and the funds obtained and applied by them and the results of their operations for the years then ended, in conformity with accounting principles generally accepted in Spain.

Accounting principles generally accepted in Spain vary in certain significant respects from accounting principles generally accepted in the United States
of America. The application of the latter would have affected the determination of net income for years ended December 31, 2006, 2005 and 2004, and the determination of stockholders equity and financial position as of December 31,
2006, 2005 and 2004 to the extent summarized in Note 20.



AUDIARGI, S.L.Registrered in R.O.A.C. under no. S0372MaJesus Martin BenesLOGO


IRUN, the 20thof July of 2007

Reg. Mercanlil de Gipuzkoa Tomo 980,
del libro de Inscripolones, Hoja SS-227, Folio 1, Inscripción 4[ILLEGIBLE]·C.I.F. B 20316444 - N[ILLEGIBLE] ROAC: S-0372



---

Corenso Tolosana, S.A.

Annual financial statements for the year ended 31 December 2006

Translation of a report originally issued in Spanish based on our work
performed in accordance with generally accepted auditing standards in Spain and of financial statements originally issued in Spanish and prepared in accordance with generally accepted accounting principles in Spain (see Note 20). In the event of a
discrepancy, the Spanish-language version prevails.



---

Translation of a report originally issued in Spanish based on our work performed in accordance with generally accepted
auditing standards in Spain and of financial statements originally issued in Spanish and prepared in accordance with generally accepted accounting principles in Spain (see Note 20). In the event of a discrepancy, the Spanish-language version
prevails.

AUDITORS REPORT ON FINANCIAL STATEMENTS

To the Shareholders of

CORENSO TOLOSANA, S.A.:



|1. | We have audited the financial statements of CORENSO TOLOSANA, S.A. comprising the balance sheet at 31 December 2006 and the related income statement and notes to the financial
statements for the year then ended. The preparation of these financial statements is the responsibility of the Companys directors. Our responsibility is to express an opinion on the financial statements taken as a whole based on our audit work
performed in accordance with generally accepted auditing standards, which require examination, by means of selective tests, of the evidence supporting the financial statements and evaluation of their presentation, of the accounting policies applied
and of the estimates made.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. | As required by Spanish corporate and commercial law, for comparison purposes the directors present, in addition to the 2006 figures for each item in the balance sheet, income
statement and statement of changes in financial position, the figures for 2005. Our opinion refers only to the 2006 financial statements. On 12 April 2006, we issued our auditors report on the 2005 financial statements, in which we
expressed an unqualified opinion.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. | In our opinion, the accompanying financial statements for 2006 present fairly, in all material respects, the net worth and financial position of CORENSO TOLOSANA, S.A. at
31 December 2006 and the results of its operations and the funds obtained and applied by it in the year then ended, and contain the required information, sufficient for their proper interpretation and comprehension, in conformity with generally
accepted accounting principles and standards applied on a basis consistent with that of the preceding year.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. | The accompanying directors report for 2006 contains the explanations which the directors consider appropriate about the Companys situation, the evolution of its business
and other matters, but is not an integral part of the financial statements. We have checked that the accounting information in the directors report is consistent with that contained in the financial statements for 2006. Our work as auditors
was confined to checking the directors report with the aforementioned scope, and did not include a review of any information other than that drawn from the Companys accounting records.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

AUDIARGI, S.L.

Registered in ROAC under no.
S0372

MaJesus Martin Benes

10 April 2007



---

Translation of financial statements originally issued in Spanish and prepared in accordance with
generally accepted

accounting principles in Spain (see Note 20). In the event of a discrepancy, the Spanish-language version
prevails.

CORENSO TOLOSANA, S.A.

BALANCE SHEETS AT 31 DECEMBER 2006, 2005 AND 2004

(Euros)



|                                                    |  |               |   |  |               |   |  |               |  
|--------------------------------------------------- |  | ------------- | - |  | ------------- | - |  | ------------- | -
|                                                    |  | 31.12.06      |   |  | 31.12.05 (*)  |   |  | 31.12.04 (*)  |  
|ASSETS                                              |  |               |   |  |               |   |  |               |  
|FIXED ASSETS                                        |  | 645,598.28    |   |  | 745,648.39    |   |  | 848,336.55    |  
|                                                    |  |               |  
|Intangible fixed assets-                            |  |               |   |  |               |   |  | 135.73        |  
|Concessions, industrial patents and brands          |  | 5,634.25      |   |  | 5,634.25      |   |  | 5,634.25      |  
|Software                                            |  | 54,836.80     |   |  | 54,836.80     |   |  | 54,836.80     |  
|Amortisation                                        |  | (60,471.00    | ) |  | (60,471.00    | ) |  | (60,335.32    | )
|                                                    |  | 0.05          |   |  | 0.05          |   |  |               |  
|Property, plant and equipment-                      |  | 644,675.94    |   |  | 744,726.05    |   |  | 847,278.48    |  
|Land and structures                                 |  | 843,634.56    |   |  | 843,634.56    |   |  | 843,634.56    |  
|Technical installations and machinery               |  | 2,404,548.73  |   |  | 2,394,101.11  |   |  | 2,820,430.38  |  
|Other installations, plant and equipment            |  | 483,377.85    |   |  | 483,377.85    |   |  | 29,328.62     |  
|Provisions                                          |  | (3,000.00     | ) |  |               |   |  |               |  
|Other property, plant and equipment                 |  | 74,801.79     |   |  | 74,974.50     |   |  | 69,603.99     |  
|Depreciation                                        |  | (3,158,686.99 | ) |  | (3,051,361.97 | ) |  | (2,915,719.07 | )
|                                                    |  |               |  
|Financial Investments-                              |  | 922.34        |   |  | 922.34        |   |  | 922.34        |  
|1. Guarantees and deposits                          |  | 922.34        |   |  | 922.34        |   |  | 922.34        |  
|                                                    |  |               |   |  |               |   |  |               |  
|CURRENT ASSETS:                                     |  | 3,980,626.77  |   |  | 3,958,309.23  |   |  | 3,995,162.97  |  
|                                                    |  |               |   |  |               |   |  |               |  
|Inventories-                                        |  | 633,411.62    |   |  | 800,836.46    |   |  | 734,679.53    |  
|Raw materials                                       |  | 357,332.73    |   |  | 389,641.56    |   |  | 286,690.68    |  
|Finished goods                                      |  | 275,538.89    |   |  | 411,065.90    |   |  | 447,988.85    |  
|By-products and waste                               |  | 540.00        |   |  | 129.00        |   |  |               |  
|                                                    |  |               |  
|Receivables-                                        |  | 2,492,253.57  |   |  | 2,779,728.77  |   |  | 2,892,537.87  |  
|Trade receivables                                   |  | 2,228,818.65  |   |  | 2,488,242.16  |   |  | 2,552,181.84  |  
|Due from Group companies                            |  | 279,440.29    |   |  | 262,435.74    |   |  | 344,738.28    |  
|Sundry receivables                                  |  |               |   |  | 39,412.37     |   |  | 0.00          |  
|Tax and social security receivables                 |  | 810.61        |   |  |               |   |  | 0.00          |  
|Provision for bad debt                              |  | (16,815.98    | ) |  | (10,361.50    | ) |  | (4,382.25     | )
|                                                    |  |               |  
|Cash and equivalents                                |  | 854,961.58    |   |  | 377,744.00    |   |  | 367,945.57    |  
|                                                    |  |               |   |  |               |   |  |               |  
|TOTAL ASSETS                                        |  | 4,626,225.05  |   |  | 4,703,957.62  |   |  | 4,843,499.52  |  
|                                                    |  |               |   |  |               |   |  |               |  
|                                                    |  |               |  
|                                                    |  | 31.12.06      |   |  | 31.12.05 (*)  |   |  | 31.12.04 (*)  |  
|LIABILITIES                                         |  |               |   |  |               |   |  |               |  
|SHAREHOLDERS EQUITY                                |  | 3,333,718.00  |   |  | 3,191,199.14  |   |  | 3,349,659.03  |  
|                                                    |  |               |  
|Share capital                                       |  | 150,250.00    |   |  | 150,250.00    |   |  | 150,250.00    |  
|                                                    |  |               |  
|Reserves-                                           |  | 3,040,949.14  |   |  | 3,014,482.54  |   |  | 2,829,556.05  |  
|Statutory reserve                                   |  | 30,050.61     |   |  | 30,050.61     |   |  | 30,050.61     |  
|Special reserve                                     |  | 3.02          |   |  | 3.02          |   |  | 3.02          |  
|Other reserves                                      |  | 3,010,895.51  |   |  | 2,984,428.91  |   |  | 2,799,502.42  |  
|                                                    |  |               |  
|Profit/loss                                         |  | 142,518.86    |   |  | 26,466.60     |   |  | 369,852.98    |  
|                                                    |  |               |  
|SHORT-TERM PAYABLES:                                |  | 1,292,506.95  |   |  | 1,512,758.52  |   |  | 1,493,840.49  |  
|                                                    |  |               |  
|Payables to credit institutions                     |  | 0.00          |   |  | 0.00          |   |  | 16,058.77     |  
|                                                    |  |               |  
|Due to Group companies and associated undertakings- |  | 697,104.86    |   |  | 840,079.53    |   |  | 696,430.53    |  
|Due to Group companies                              |  | 697,104.86    |   |  | 840,079.53    |   |  | 696,430.53    |  
|                                                    |  |               |  
|Trade payables-                                     |  | 422,814.00    |   |  | 504,740.71    |   |  | 480,915.64    |  
|Purchases and services provided.                    |  | 422,814.00    |   |  | 504,740.71    |   |  | 480,915.64    |  
|(112,809.10)                                        |  |               |   |  |               |   |  |               |  
|                                                    |  |               |  
|Other non-trade payables-                           |  | 172,588.09    |   |  | 167,938.28    |   |  | 300,435.55    |  
|Tax and social security payables                    |  | 107,559.77    |   |  | 98,531.80     |   |  | 240,711.55    |  
|Other payables                                      |  | 10,037.20     |   |  | 12,256.52     |   |  | 12,724.00     |  
|Remuneration pending payment                        |  | 54,991.12     |   |  | 57,149.96     |   |  | 47,000.00     |  
|                                                    |  |               |   |  |               |   |  |               |  
|TOTAL LIABILITIES                                   |  | 4,626,224.95  |   |  | 4,703,957.66  |   |  | 4,843,499.52  |  
|                                                    |  |               |   |  |               |   |  |               |  



2



---

Translation of financial statements originally issued in Spanish and prepared in accordance with
generally accepted

accounting principles in Spain (see Note 20). In the event of a discrepancy, the Spanish-language version
prevails.

CORENSO TOLOSANA. S.A.

INCOME STATEMENTS

FOR THE YEARS ENDED

31 DECEMBER 2006, 2005 AND 2004

(Euros)



|                                                                                                                                                           |  |              |  |              |  |             
|---------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  | ------------ |  | ------------
|                                                                                                                                                           |  | FY 2,006.00  |  | FY 2005 (*)  |  | FY 2004 (*) 
|DEBIT                                                                                                                                                      |  |              |  |              |  |             
|EXPENDITURE:                                                                                                                                               |  | 9,039,519.05 |  | 8,532,407.65 |  | 8,513,839.75
|                                                                                                                                                           |  |              | 
|Operating inputs                                                                                                                                           |  | 5,897,516.93 |  | 5,572,177.62 |  | 5,672,374.56
|                                                                                                                                                           |  |              | 
|Personnel expenses                                                                                                                                         |  | 1,404,055.48 |  | 1,313,067.42 |  | 1,267,807.29
|Wages and salaries                                                                                                                                         |  | 1,155,693.40 |  | 1,064,529.75 |  | 1,012,981.01
|Social security charges borne by the Company                                                                                                               |  | 248,362.08   |  | 248,537.67   |  | 248,809.86  
|Other social expenses                                                                                                                                      |  | 0.00         |  | 0.00         |  | 6,016.42    
|                                                                                                                                                           |  |              | 
|Fixed asset depreciation and amortisation                                                                                                                  |  | 119,657.79   |  | 135,778.67   |  | 145,782.65  
|                                                                                                                                                           |  |              | 
|Change in trade provision                                                                                                                                  |  | 6,454.48     |  | 5,979.25     |  | 1,226.65    
|                                                                                                                                                           |  |              | 
|Other operating expenses                                                                                                                                   |  | 1,611,834.37 |  | 1,505,404.69 |  | 1,426,648.60
|                                                                                                                                                           |  |              |  |              |  |             
|I. OPERATING PROFIT                                                                                                                                        |  | 125,587.53   |  | 28,830.07    |  | 490,548.40  
|                                                                                                                                                           |  |              |  |              |  |             
|Financial and similar charges-                                                                                                                             |  | 6,255.18     |  | 8,220.24     |  | 9,528.83    
|Due on other payables                                                                                                                                      |  | 6,255.18     |  | 8,220.24     |  | 9,528.83    
|                                                                                                                                                           |  |              | 
|Negative translation differences                                                                                                                           |  | 78.42        |  | 126.97       |  |             
|                                                                                                                                                           |  |              |  |              |  |             
|II. FINANCIAL INCOME                                                                                                                                       |  | 14,137.18    |  | 6,113.18     |  | 10,325.54   
|                                                                                                                                                           |  |              |  |              |  |             
|III. PROFIT ON ORDINARY ACTIVITIES (I+II)                                                                                                                  |  | 139,724.71   |  | 34,943.25    |  | 500,873.94  
|                                                                                                                                                           |  |              |  |              |  |             
|Change in provisions impairment property, plant and equipment, intang. fixed assets and portfolio of controllin and portfolio of controlling
shareholdings |  | 3,000.00     |  | 0.00         |  |             
|                                                                                                                                                           |  |              |  |              |  |             
|IV. EXTRAORDINARY INCOME                                                                                                                                   |  | 34,041.18    |  | 503.34       |  | 30,299.12   
|                                                                                                                                                           |  |              |  |              |  |             
|V. PROFIT BEFORE TAX (III+/-IV)                                                                                                                            |  | 173,765.89   |  | 35,446.39    |  | 531,173.06  
|                                                                                                                                                           |  |              |  |              |  |             
|Less- Company income tax (Note 14)                                                                                                                         |  | 31,247.03    |  | 8,979.99     |  | 161,320.08  
|                                                                                                                                                           |  |              |  |              |  |             
|VI. PROFIT FOR THE YEAR                                                                                                                                    |  | 142,518.86   |  | 26,466.60    |  | 369,852.98  
|                                                                                                                                                           |  |              |  |              |  |             
|                                                                                                                                                           |  |              | 
|                                                                                                                                                           |  | FY 2,006.00  |  | FY 2005 (*)  |  | FY 2004 (*) 
|CREDIT                                                                                                                                                     |  |              |  |              |  |             
|INCOME:                                                                                                                                                    |  |              |  |              |  |             
|Operating income                                                                                                                                           |  | 9,165,106.58 |  | 8,561,237.72 |  | 9,004,388.15
|a) Net sales                                                                                                                                               |  | 9,140,170.85 |  | 8,536,242.50 |  | 8,948,892.14
|b) Other operating income                                                                                                                                  |  | 24,935.73    |  | 24,995.22    |  | 1,509.12    
|c) Increase in work in progress and finished goods                                                                                                         |  | 0.00         |  | 0.00         |  | 53,986.89   
|                                                                                                                                                           |  |              |  |              |  |             
|I. OPERATING LOSS                                                                                                                                          |  |              |  |              |  |             
|Financial Income                                                                                                                                           |  | 20,439.02    |  | 14,459.69    |  | 19,854,37   
|Other interest income                                                                                                                                      |  | 20,439.02    |  | 14,459.69    |  | 19,854.37   
|                                                                                                                                                           |  |              | 
|Positive translation differences                                                                                                                           |  | 31.76        |  | 0.70         |  |             
|                                                                                                                                                           |  |              |  |              |  |             
|II. FINANCIAL EXPENSE                                                                                                                                      |  |              |  |              |  |             
|                                                                                                                                                           |  |              | 
|III. LOSS ON ORDINARY ACTIVITIES (I+II)                                                                                                                    |  |              |  |              |  |             
|                                                                                                                                                           |  |              | 
|Gains on disposal of property, plant and equipment, intang. fixed assets and portfolio of controlling shareholdings                                        |  | 37,007.26    |  |              |  | 29,939.93   
|                                                                                                                                                           |  |              | 
|Proportion of capital grants taken to income of current period                                                                                             |  | 0.00         |  | 0.00         |  | 340.07      
|Extraordinary income                                                                                                                                       |  | 33.92        |  | 503.34       |  | 19.12       
|                                                                                                                                                           |  |              | 
|IV. EXTRAORDINARY EXPENSES                                                                                                                                 |  |              |  |              |  |             
|                                                                                                                                                           |  |              | 
|V. LOSS BEFORE TAX (III+/-IV)                                                                                                                              |  |              |  |              |  |             



3



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Translation of financial statements originally issued in Spanish and prepared in accordance with generally accepted
accounting principles in Spain (see Note 20). In the event of a discrepancy, the Spanish-language version prevails.

Corenso
Tolosana, S.A.

Notes to the financial statements for the year ended

31 December 2006

1. Activity of the Company

CORENSO TOLOSANA, S.A. was incorporated on 9 February 1967 as a Sociedad Anonima(Spanish public limited company). It
currently has its registered office in Elduain (Gipuzkoa), at C/ Olaondo, Km 0.7.

The Companys corporate purpose is the manufacture
of paper and packaging, and any other associated activity.

2. Basis of presentation

True and fair view -

The annual
financial statements, consisting of the balance sheet, income statement and these notes, have been prepared on the basis of the Companys accounting records and have been drawn up by its Board of Directors in accordance with the Spanish General
Chart of Accounts so as to give a true and fair view of the Companys equity, financial position and the results of its operations. The annual financial statements will be submitted for approval by shareholders at the Annual General Meeting.
The Directors are of the opinion that they will be approved without significant modification.

Accounting principles-

The accounting principles established in the Spanish Code of Commerce, Spanish Limited Companies Act, and, in particular, the Spanish General Chart of
Accounts approved by Royal Decree 1,643/1990 dated 20 December were applied in the preparation of the annual financial statements.

Comparative information-

In accordance with commercial and accounting legislation, for each item of the balance sheet,
income statement and cash flow statement, figures for the previous financial year are provided in addition to the figures for the year just ended for purposes of comparison.

Grouping of accounts items-

No items
have been grouped together, as the model established in the Spanish Limited Companies Act has been applied for all accounts items with outstanding balances.



4



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3. Appropriation of profit

The Companys Board of Directors plan to submit the following proposed appropriation of 2006 profit for the approval of shareholders at the Annual General Meeting:



|                                          |                       |            |              |           
|----------------------------------------- | --------------------- | ---------- | ------------ | ----------
|Proposed appropriation of 2006 profit     |                       | euros     
|                                          | Base forappropriation |            | Distribution
|Profit and loss                           |                       | 142,518.86 |              |           
|Retained earnings                         |                       |           |              |          
|Voluntary reserves                        |                       |           |              | 71,259.43 
|Other reserves                            |                       |           |              |          
|Statutory reserve                         |                       |           |              |          
|                                          |                       |           
|Special reserve pursuant to art. 10 NF/96 |                       |           |              |          
|Dividends                                 |                       |           |              | 71,259.43 
|Tax loss carry forwards                   |                       |           |              |          
|Directors share in profits               |                       |           |              |          
|                                          |                       |            |              |           
|Totals                                    |                       | 142,518.86 |              | 142,518.86
|                                          |                       |            |              |           

No interim dividends were distributed in the course of the year and there are therefore no
restrictions on the distribution of dividends from profit for the year or from unrestricted reserves.

4. Measurement standards

The main measurement standards used by the Company to draw up its annual financial statements are as follows:



| | (a) | Intangible fixed assets-
| | --- | ------------------------

Items included under intangible fixed assets are carried at acquisition or production cost. The criteria used to amortise these items and establish the related provisions are the same as those applied in respect of property, plant and
equipment.

The following criteria in particular are applied:

Industrial patents and brands: These are carried at acquisition cost and are amortised on a straight-line basis over a period of five years.



5



---

Software: The amounts recorded under this heading correspond to the amounts paid to obtain
ownership or usage rights for IT applications and costs incurred in the development of in-house applications, solely in those cases where it is anticipated that they will be used over a period of several years. Software maintenance expenses are
charged directly as costs in the year in which they are incurred.

Software is amortised on a straight-line basis over a period of five
years, commencing from the time at which the corresponding software is brought into service.

The charge recognised in the Fixed asset
depreciation and amortisation line of the 2006 income statement for the amortisation of intangible fixed assets is EUR 0.



| | (b) | Property, plant and equipment-
| | --- | ------------------------------

Property, plant and equipment are carried at acquisition cost, without adding capitalised finance costs to the value of work in progress or before the assets in question is ready to be brought into service. Repairs that do not extend the
useful life of the asset and maintenance costs are charged against income for the year in which they are incurred, whilst the costs of extensions, modernisation or improvements that result in an increase in productivity or capacity or an extension
of the useful life of the asset are capitalised by increasing the carrying value of the asset in question.

Tools and equipment that do not
form part of an item of machinery and which have an estimated useful life of less than a year are charged against income for the year. If the useful life of an asset is more than one year, the asset is capitalised and its carrying value adjusted
periodically according to the physical count of the item.

The Company begins depreciating items of property, plant and equipment on the
date of their acquisition or, where applicable, on the date on which they are ready to be brought into service or operation. As of this date, the asset is depreciated on a straight-line basis, with the cost of the asset being distributed over its
estimated useful life, as detailed below:



|                                                |  |                          
|----------------------------------------------- |  | -------------------------
|Depreciation of property, plant and equipment   |  | Estimatedyearsuseful life
|Buildings and other structures (excluding land) |  | 20                       
|Machinery and installations                     |  | 6-10                     
|Plant                                           |  | 3-5                      
|Furniture and fittings                          |  | 6-10                     
|Computer equipment                              |  | 5                        
|Laboratory equipment                            |  | 6-10                     
|Motor vehicles                                  |  | 5                        

In addition, whenever signs of obsolescence that could affect certain items of property, plant and
equipment are identified, appropriate provisions for impairment are established so that the market value of each item of property, plant and equipment may be adjusted as required.



6



---

The charge recognised in the Fixed asset depreciation and amortisation line of the 2006
income statement for the depreciation of property, plant and equipment was EUR 119,657.79.



| | c) | Financial investments-
| | -- | ----------------------

Financial
investments are carried at the lower of acquisition cost or market price, including corresponding transaction costs. The market price of each category of short- and long-term financial investments is determined as follows:



| |  |  | Securities listed to trade on an official market are carried at the lower of average market price in the last calendar quarter and latest market price.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Equity interests in Group companies and associated undertakings are recognised at the fair value of the interest, adjusted, where necessary, for the amount of any
unrealised capital gains existing at the time of acquisition that continue to exist as of the balance sheet date, including in the case of negotiable securities listed to trade on an official secondary market.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Securities not listed to trade on an official market are recognised at the fair value assigned them in the latest annual financial statements, adjusted for any
unrealised capital gains or losses existing at the time of acquisition that continue to exist as of the balance sheet date.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Any negative differences between the acquisition cost and fair market value at the close of the year are recognised in Provisions for financial investments.



| | d) | Receivables
| | -- | -----------



| | 1. | Non-trade receivables:
| | -- | ----------------------

Short- and long-term non-trade
receivables are recognised at the amount actually disbursed. The difference between this amount and nominal value is recognised as financial income in the year accrued, in accordance with the interest method.



| | 2. | Trade receivables: Clients and debtors
| | -- | --------------------------------------

Short-term trade
receivables are recognised on the asset side of the balance sheet at their nominal value (amount of the transaction), plus late-payment interest.

However, discounted bank bills pending collection are assigned to the respective client and/or debtor accounts, with an offsetting entry in the same amount under Bank debt on the liabilities side of the balance sheet.

Bill discounting expenses are recognised in income when incurred, and are not deferred over the term to maturity of the respective
discounted bills because of their limited impact on income for the year.



7



---

Amounts received from clients in respect of sums not actually disbursed or disbursed only in part are
recognised as advances on the liabilities side of the balance sheet, and are recycled to income at the time the amounts outstanding are actually disbursed.

The Companys practice is to establish appropriate provisions for uncollectible receivables on the basis of the risk of default on the collection of these receivables.

The Company has taken out a credit insurance policy with Credito y Caucion that covers up to 85% of balances pending collection from each of its clients
in Spain and 90% of balances pending collection from clients outside Spain, subject to the risk limits authorised by the insurance company for each client.



| | e) | Inventories-
| | -- | ------------

Assets included in inventories
are carried at acquisition or production cost:



| |  |  | The method used to calculate acquisition cost is the average weighted cost method. The acquisition cost consists of the amount billed plus any additional expenses
that may arise until the items are deposited in the warehouse.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Production cost is based on the acquisition price of the inputs used and the costs directly or indirectly attributable to the product in question, provided that
such indirect costs correspond to the period of production.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

If the market value falls below the acquisition or production
cost but the impairment is considered reversible, a value adjustment is recorded and the corresponding provision established. Market value is deemed to be the following:



| |  |  | For inventories of raw materials and other supplies, the lower of replacement value and net realisable value.
| | - |  | -------------------------------------------------------------------------------------------------------------



| |  |  | For finished goods, their realisable value, less corresponding marketing expenses
| | - |  | ---------------------------------------------------------------------------------



| |  |  | For work in progress and semi-finished goods, the realisable value of the corresponding finished goods, less all production costs not yet incurred and marketing
expenses.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The value of obsolete, defective or slow-moving inventories has been reduced to their possible realisable
value.



8



---

| | f) | Provisions for pensions and similar commitments-
| | -- | ------------------------------------------------

In accordance with prevailing employment law, the Company is required to pay severance pay to employees whose contracts of employment are terminated in certain circumstances. The accompanying balance sheet for the
year just ended includes no provision for such liabilities since the Companys Board of Directors doe not anticipate any significant redundancies in future years and severance pay is therefore charged against income in the year in which the
redundancy occurs.



| | g) | Debt-
| | -- | -----

Debts are recognised on the balance
sheet as liabilities and divided into short and long term according to their term to maturity. Debts with a term to maturity in excess of 12 months, counting from the date of the balance sheet close, are considered long term.

Non-trade payables, whether short- or long-term, are recognised at their repayment value. The difference between repayment value and the amount actually
received is amortised using the interest method.

Credit facilities are recognised at the amount drawn down.

Trade payables are recognised on the liabilities side of the balance sheet at their nominal value.



| | h) | Company income tax-
| | -- | -------------------

The company income tax
liability for the year is calculated on the basis of accounting profit before tax, plus or minus, as appropriate, any permanent differences from taxable profit, the latter being understood to mean the tax base for the aforesaid tax, less any tax
relief and credits, and any tax loss carry forwards applied in the year, excluding withholdings of the aforesaid tax.

The difference
between the tax liability incurred and the amount paid is attributable to temporary differences in the recognition of income and expenses that give rise to deferred tax assets and liabilities that are recognised, in application of prudent accounting
principles, on the balance sheet as tax receivables and payables respectively.

The tax discounts corresponding to deductions to avoid
double taxation, tax relief and credits and the application of tax loss carry forwards are recognised as a reduction in the company income tax charge for the year in which they are applied or offset.

In application of prudent accounting principles, the Company does not recognise tax credits deriving from tax loss carry forwards generated in previous
years until the year in which the losses are actually offset.



| | i) | Transactions in foreign currency-
| | -- | ---------------------------------

As a
general rule, any positive translation differences not realised at the year-end are not recognised in income but are recorded on the balance sheet as deferred income.



9



---

In contrast, negative translation differences are recognised directly in income for the year.



| | j) | Income and expenses-
| | -- | --------------------

Income and expenses
are recognised on an accruals basis, that is, when the goods and services at their origin are actually exchanged, irrespective of when the resulting financial or monetary flow is received or paid.

However, in application of prudent accounting principles, the Company only recognise gains actually realised at the close of the year, whereas foreseeable
risks and losses, even if only contingent, are recognised as soon as they become known.

Income is recognised exclusive of transaction
taxes, after deduction, where applicable, of any discounts applied, whether or not billed. In the case of expenses, any associated taxes, including VAT, are recognised as an increase in the value of the goods or services acquired.



| | k) | Environmental issues-
| | -- | ---------------------

Items included in the
Companys assets that are intended to be used in its activity for a prolonged period of time and the main purpose of which is to reduce the environmental impact of such activity and to protect and enhance the environment are recognised in the
balance sheet as property, plant and equipment at their acquisition or production cost, as applicable. The cost prices of these assets are depreciated on a straight-line basis over their estimated useful lives, as detailed in Note 4.

Environmental expenses consist of expenses incurred in the exercise of environmental activities related to the management of the environmental impact of
the Companys operations, and those deriving from the companys environment commitments. These expenses are included in the income statement under other operating expenses.

Provisions of an environmental nature, where they exist, cover those environmental expenses considered probable or certain at the balance sheet close but
for which the exact amount or exact date of occurrence is not yet determined. The value of these provisions therefore corresponds to the best estimate possible on the basis of the information available at the date of the balance sheet close.



10



---

5. Intangible fixed assets

Changes in the different intangible fixed asset accounts and the corresponding amortisation in the year were as follows:



|                                |  |                    |   |  |           |  |             |  |                    |  
|------------------------------- |  | ------------------ | - |  | --------- |  | ----------- |  | ------------------ | -
|                                |  | EUR                |  
|                                |  | Balance at31.12.05 |   |  | Additions |  | Retirements |  | Balance at31.12.06 |  
|Cost:                           |  |                    |   |  |           |  |             |  |                    |  
|Industrial patents and brands   |  | 5,634.25           |   |  |          |  |            |  | 5,634.25           |  
|Software                        |  | 54,836.80          |   |  |          |  |            |  | 54,836.80          |  
|                                |  |                    |   |  |           |  |             |  |                    |  
|Total cost                      |  | 60,471.05          |   |  |          |  |            |  | 60,471.05          |  
|                                |  |                    |   |  |           |  |             |  |                    |  
|Accumulated amortisation:       |  |                    |   |  |           |  |             |  |                    |  
|Industrial patents and brands   |  | (5,634.25          | ) |  |          |  |            |  | (5,634.25          | )
|Software                        |  | (54,836.80         | ) |  |          |  |            |  | (54,836.80         | )
|                                |  |                    |   |  |           |  |             |  |                    |  
|Total accumulated amortisation: |  | (60,471.05         | ) |  |          |  |            |  | (60,471.05         | )
|                                |  |                    |   |  |           |  |             |  |                    |  
|Intangible fixed assets, net    |  | 0.00               |   |  |          |  |            |  | 0.00               |  
|                                |  |                    |   |  |           |  |             |  |                    |  

The gross value of intangible fixed asset items that were fully amortised as of 31 December
2006 is EUR 60,471.05.



11



---

6. Property, plant and equipment

Changes in the different accounts making up property, plant and equipment and the corresponding accumulated depreciation in the year were as follows:



|                                             |  |                    |   |  |             |   |  |             |   |  |                    |  
|-------------------------------------------- |  | ------------------ | - |  | ----------- | - |  | ----------- | - |  | ------------------ | -
|                                             |  | EUR                |  
|                                             |  | Balance at31.12.05 |   |  | Additions   |   |  | Retirements |   |  | Balance at31.12.06 |  
|Cost:                                        |  |                    |   |  |             |   |  |             |   |  |                    |  
|Land and structures                          |  | 843,634.56         |   |  |             |   |  |             |   |  | 843,634.56         |  
|Installations and machinery                  |  | 2,806,253.03       |   |  | 21,419.94   |   |  | (10,972.32  | ) |  | 2,816,700.65       |  
|Plant                                        |  | 41,897.31          |   |  |             |   |  |             |   |  | 41,897.31          |  
|Furniture and fittings                       |  | 29,328.62          |   |  |             |   |  |             |   |  | 29,328.62          |  
|Computer equipment                           |  | 44,318.92          |   |  | 1,187.74    |   |  | (1,360.45   | ) |  | 44,146.21          |  
|Laboratory equipment                         |  | 30,655.58          |   |  |             |   |  |             |   |  | 30,655.58          |  
|Provisions for property, plant and equipment |  |                    |   |  | (3,000.00   | ) |  |             |   |  | (3,000.00          | )
|                                             |  |                    |   |  |             |   |  |             |   |  |                    |  
|Total cost                                   |  | 3,796,088.0        |   |  | 19,607.68   |   |  | (12,332.77  | ) |  | 3,803,362.93       |  
|                                             |  |                    |   |  |             |   |  |             |   |  |                    |  
|Accumulated depreciation:                    |  |                    |   |  |             |   |  |             |   |  |                    |  
|Buildings and structures                     |  | (473,183.28        | ) |  | (41,960.04  | ) |  |             |   |  | (515,143.32        | )
|Installation and machinery                   |  | (2,446,807.28      | ) |  | (71,981.48  | ) |  | 10,972.32   |   |  | (2,507,816.44      | )
|Plant                                        |  | (41,161.77         | ) |  | (37588      | ) |  |             |   |  | (41,537.65         | )
|Furniture and fittings                       |  | (28,060.23         | ) |  | (525.38     | ) |  |             |   |  | (28,585.61         | )
|Computer equipment                           |  | (33,627.93         | ) |  | (4,352.47   | ) |  | 1,360.45    |   |  | (36,619.95         | )
|Laboratory equipment                         |  | (28,521.48         | ) |  | (462.54     | ) |  |             |   |  | (28,984.02         | )
|                                             |  |                    |   |  |             |   |  |             |   |  |                    |  
|Total accumulated depreciation:              |  | (3,051,361.97      | ) |  | (119,657.79 | ) |  | 12,332.77   |   |  | (3,158,686.99      | )
|                                             |  |                    |   |  |             |   |  |             |   |  |                    |  
|Property, plant and equipment, net           |  | 744,726.05         |   |  |             |   |  | 644,675.94  |  
|                                             |  |                    |   |  |             |   |  |             |   |  |                    |  

The insurance policies taken out by the Company for its property, plant and equipment more than
cover the net carrying value of the assets and the Directors are of the opinion that the risks inherent in the companys activities are adequately covered.

Certain items of property, plant and equipment had been fully depreciated at the year-end. The carrying values of these items are as detailed below:



|                                                |  |             
|----------------------------------------------- |  | ------------
|Fully depreciated property, plant and equipment |  | EUR         
|Machinery and installations                     |  | 2,221,754.57
|Plant                                           |  | 40,458.64   
|Furniture and fittings                          |  | 24,577.27   
|Computer equipment                              |  | 30,405.06   
|Laboratory equipment                            |  | 27,616.39   
|                                                |  |             
|                                                |  | 2,344,811.93
|                                                |  |             

The EUR 3,000 provision for the impairment of property, plant and equipment was established to
cover an agreement for the transfer of ownership of a semi-automatic cutter with a market value at 31/12/06 lower than its net value.



12



---

At the year-end, the Company had no firm undertakings for the purchase or sale of property, plant and
equipment.

In addition, at the year-end, no items of property, plant and equipment were subject to mortgage guarantees.

7. Financial investments

Changes in the
different accounts under the financial investments heading and the corresponding provisions in the year were as follows:



|                                  |  |                    |  |                   |  |                      |  |                   
|--------------------------------- |  | ------------------ |  | ----------------- |  | -------------------- |  | ------------------
|                                  |  | EUR               
|                                  |  | Balance at31.12.05 |  | Additions/Charges |  | Transfers/Reductions |  | Balance at31.12.06
|Long-term guarantees and deposits |  | 922.34             |  |                   |  |                      |  | 922.34            
|Provisions                        |  |                   |  |                  |  |                     |  |                  
|                                  |  |                    |  |                   |  |                      |  |                   
|Total cost of equity interests    |  | 922.34             |  |                  |  |                     |  | 922.34            
|                                  |  |                    |  |                   |  |                      |  |                   

At the year-end, no negotiable securities, receivables or other similar financial investments were
subject to any guarantee of any kind, nor did the Company have any firm undertakings for the purchase or sale of any of the aforesaid financial investments.

8. Inventories

The breakdown of inventories is as follows:



|                                 |  |           
|-------------------------------- |  | ----------
|                                 |  | EUR       
|Raw materials and other supplies |  | 357,332.73
|- Cardboard                      |  | 233,462.00
|- Other paper                    |  | 54,786.45 
|- Adhesives                      |  | 21,155.38 
|- Packaging materials            |  | 41,789.97 
|- Other supplies                 |  | 6,138.93  
|Finished goods                   |  | 276,078.89
|- Cores                          |  | 275,538.89
|- Offcuts                        |  | 540.00    
|                                 |  |           
|                                 |  | 633,411.62
|                                 |  |           

At the year-end, the Company had no firm undertakings to buy products form third parties, nor was
the use or disposal of any of its inventories restricted due to guarantees, pledges, sureties or any other similar lien.



13



---

The Companys policy is to take out all the insurance polices deemed necessary to cover the
contingent risks that could affect its inventories.

9. Shareholders equity

The change in the Shareholders equity and Reserves accounts was as follows:



|                                           |  |                    |  |                        |   |  |                          |  |                   
|------------------------------------------ |  | ------------------ |  | ---------------------- | - |  | ------------------------ |  | ------------------
|                                           |  | Balance at31.12.05 |  | Appropriation2005 prof |   |  | Applicationsor additions |  | Balance at31.12.06
|Share capital                              |  | 150,250.00         |  |                        |   |  |                          |  | 150,250.00        
|Issue premium                              |  |                    |  |                        |   |  |                          |  |                  
|Reserve for restatement of capital to euro |  | 3.02               |  |                        |   |  |                          |  | 3.02              
|Statutory reserve                          |  | 30,050.61          |  |                        |   |  |                          |  | 30,050.61         
|Special reserve                            |  |                    |  |                        |   |  |                          |  |                  
|Voluntary reserves                         |  | 2,984,428.91       |  | 26,466.60              |   |  |                          |  | 3,010,895.51      
|- Retained earnings                        |  |                    |  |                        |   |  |                          |  |                  
|Profit for the year                        |  | 26,466.60          |  | (26,466.60             | ) |  | 142,518.86               |  | 142,518.86        
|                                           |  |                    |  |                        |   |  |                          |  |                   
|TOTALS                                     |  | 3,191,199.14       |  | 0.0                    |   |  | 142,518.86               |  | 3,333,718.00      
|                                           |  |                    |  |                        |   |  |                          |  |                   

Share capital-

At the year-end the Company had share capital of EUR 150,150.00 consisting of EUR 25,000 fully subscribed and paid up shares each with a par value of EUR
6.01.

At the year-end, the following companies had share holdings equivalent to more than 10% of total share capital:



|                                               |  |                     |  
|---------------------------------------------- |  | ------------------- | -
|Shareholder                                    |  | Ownershipinterest % |  
|Corenso France, S.A.S                          |  | 77.32               | %
|Wewak San Andres, S.L., single shareholder co. |  | 22.68               | %
|                                               |  |                     |  
|                                               |  | 100                 | %
|                                               |  |                     |  



14



---

Statutory reserve-

At the year-end the value of the statutory reserve was equal to 20% of share capital, as required under prevailing legislation.

The statutory reserve may be used to increase capital provided that the remaining reserve balance does not fall below 10% of the balance of share capital after the increase. With the exception of the foregoing use,
until the statutory reserve exceeds 20% of share capital, it can only be used to offset losses, and only then provided that other reserves available are insufficient for this purpose.

Voluntary reserves-

Voluntary
reserves consist of earnings generated by the Company since the start of its industrial activity that have not been distributed or assigned to statutory or restricted reserves.

Reserve for restatement of capital to euro-

This reserve cannot be distributed.

10. Deferred income

The Company has no deferred income.

11. Provisions
for pensions and similar commitments

At the year-end, no provisions for pensions or similar commitments had been established as no
material liabilities are expected to arise in the years to come. Should such liabilities arise, they would be recognised in income at that time.

12.
Other provisions for liabilities and charges

No claims, undertakings or other similar obligations necessitating provisions for
liabilities and charges existed at the year-end.



15



---

13. Trade and non-trade payables

Changes in the different accounts under this heading in 2006 were as follows:



|                               |                |              |           |             |   |             |             |   |                |             
|------------------------------ | -------------- | ------------ | --------- | ----------- | - | ----------- | ----------- | - | -------------- | ------------
|                               |                | EUR         
|                               | Openingbalance |              | Additions |             |   | Retirements |             |   | Closingbalance
|Long-term                      |                | 0.00         |           | 0.00        |   |             | 0.00        |   |                | 0.00        
|Bank debt                      |                |              |           |             |   |             |             |   |                | 0.00        
|Payable to Group companies (1) |                |              |           |             |   |             |             |   |                | 0.00        
|Other payables                 |                |              |           |             |   |             |             |   |                | 0.00        
|Short-term                     |                | 1,512,758.52 |           | (585,203.71 | ) |             | 36,952.24   |   |                | 1,292,507.05
|Bank debt                      |                |              |           |             |   |             |             |   |                |             
|Payable to Group companies (1) |                | 840,079.53   |           | (840,079.53 | ) |             | 697,104.86  |   |                | 697,104.86  
|Trade payables                 |                | 504,740.71   |           | 422,814.10  |   |             | (504,740.71 | ) |                | 422,814.10  
|Other payables                 |                | 167,938.28   |           | (167,938.28 | ) |             | 172,588.09  |   |                | 172,588.09  
|                               |                |              |           |             |   |             |             |   |                |             
|TOTAL                          |                | 1,512,758.52 |           | (585,203.71 | ) |             | 364,952.24  |   |                | 1,292,507.05
|                               |                |              |           |             |   |             |             |   |                |             

The amounts payable to Group companies correspond to trade debts in the amount of EUR 680,404.93.

Bank debt-

The
Company had no bank debt at the year-end.

Maturity of trade and non-trade payables-

At the year-end, the breakdown of the Companys non-trade payables by maturity was as follows:



|                                                       |            |              |           |      |      |      |                    |      |       |             
|------------------------------------------------------ | ---------- | ------------ | --------- | ---- | ---- | ---- | ------------------ | ---- | ----- | ------------
|Breakdown non-trade payables                           |            | EUR         
|                                                       | Short-term |              | Long-term
|                                                       | 2007       |              | 2008      |      | 2009 |      | 2010 andthereafter |      | Total
|Trade payables                                         |            | 422,814.10   |           |      |      |      |                    |      |       | 422,814.10  
|Payable to Group companies and associated undertakings |            | 697,104.86   |           |      |      |      |                    |      |       | 697,104.86  
|Tax payables                                           |            | 107,559.77   |           |      |      |      |                    |      |       | 107,559.77  
|Other payables                                         |            | 10,037.20    |           |      |      |      |                    |      |       | 10,037.20   
|Remuneration pending payment                           |            | 54,991.12    |           |      |      |      |                    |      |       | 54,991.12   
|                                                       |            |              |           |      |      |      |                    |      |       |             
|Total                                                  |            | 1,292,507.05 |           | 0.00 |      | 0.00 |                    | 0.00 |       | 1,292,507.05
|                                                       |            |              |           |      |      |      |                    |      |       |             



16



---

14. Tax position

Company income tax-

a) Reconciliation of accounting profit and tax base

The reconciliation between accounting profit for the year and the tax base for company income tax purposes is as follows:



|                                       |  |           |  |            |  |           
|-------------------------------------- |  | --------- |  | ---------- |  | ----------
|                                       |  | EUR      
|                                       |  | Increases |  | Reductions |  |           
|Profit for the year (after taxes)      |  |           |  |            |  | 142,518.86
|Company income tax                     |  | 31,247.03 |  |            |  |           
|Permanent differences                  |  | 225.38    |  | 37,007.26  |  |           
|Temporary differences                  |  |           |  |            |  |           
|- arising in the year                  |  |           |  |            |  |           
|- arising in previous years            |  |           |  |            |  |           
|Application of tax loss carry forwards |  |           |  |            |  |           
|                                       |  |           |  |            |  |           
|Tax base (taxable profit)              |  |           |  |            |  | 136,984.01
|                                       |  |           |  |            |  |           

b) Company income tax charge

The company income tax charge for the year is calculated as follows:



|                                 |  |            |  
|-------------------------------- |  | ---------- | -
|                                 |  | EUR        |  
|Tax base                         |  | 136,984.01 |  
|Temporary differences            |  |           |  
|                                 |  |            |  
|Restated accounting profit       |  | 136,984.01 |  
|Gross tax charge (32.6%)         |  | 44,656.78  |  
|Tax relief                       |  | (13,409.75 | )
|                                 |  |            |  
|Company income tax due           |  | 31,247.03  |  
|                                 |  |            |  
|Withholdings on financial income |  | (826.13    | )
|                                 |  |            |  
|Company income tax payable       |  | 30,420.90  |  
|                                 |  |            |  



17



---

The detail of the tax deductions applicable as a result of company income tax relief provided for in
Regional Law 7/1996 is as follows:



|                      |               |      |                          |           |                |           |           |  |                    |     
|--------------------- | ------------- | ---- | ------------------------ | --------- | -------------- | --------- | --------- |  | ------------------ | ----
|Period of generation  |               | EUR 
|                      | Year ofOrigin |      | Balanceapplicablein 2006 |           | Applied in2006 |           | Cancelled |  | Pendingapplication
|Professional training |               | 2006 |                          | 5,223.98  |                | 5,223.98  |           |  |                    | 0.00
|Job creation          |               | 2006 |                          | 8,185.77  |                | 8,185.77  |           |  |                    | 0.00
|Unlimited tax relief  |               |      |                          | 13,409.75 |                | 13,409.75 |           |  |                    | 0.00
|                      |               |      |                          |           |                |           |           |  |                    |     
|TOTALS                |               |      |                          | 13,409.75 |                | 13,409.75 |           |  |                    | 0.00
|                      |               |      |                          |           |                |           |           |  |                    |     

By virtue of the provisions of article 22 of Regional Law 7/1996, the Company has assumed
investment undertakings deriving from the exemption granted for the reinvestment of extraordinary income and pursuant to article 24 of income tax regulations (Regional Decree 45/1997), the following data are provided:



|                     |  |               |  |              |  |                             |  |                            |  |                      
|-------------------- |  | ------------- |  | ------------ |  | --------------------------- |  | -------------------------- |  | ---------------------
|Period of generation |  | Transfervalue |  | Exemptincome |  | Tax periods forreinvestment |  | Reinvestmentin asset items |  | Amountreinvested(EUR)
|2006                 |  | 37,007.26     |  | 36,465.22    |  | 2005                        |  | Installations              |  | 27,037.35            
|                     |  |              |  |             |  | 2005                        |  | IT equipment               |  | 30,420.90            
|                     |  |              |  |             |  | 2006                        |  | Machinery                  |  | 23,200.28            
|                     |  |               |  |              |  |                             |  |                            |  |                      
|TOTALS               |  | 37,007.26     |  | 36,465.22    |  |                             |  |                            |  | 107,559.77           
|                     |  |               |  |              |  |                             |  |                            |  |                      

Tax and social security receivables and payables-

The breakdown of tax and social security receivables and payables at the year-end was as follows:



|                      |  |               |  |                 
|--------------------- |  | ------------- |  | ----------------
|Short-term            |  | AmountPayable |  | AmountReceivable
|Value added tax       |  |              |  | 27,037.35       
|Company income tax    |  |              |  | 30,420.90       
|Withholding taxes     |  |              |  | 23,200.28       
|French government VAT |  | 810.61        |  | 2,474.45        
|Social security       |  |              |  | 24,426.79       
|                      |  |               |  |                 
|TOTALS                |  | 810.61        |  | 107,559.77      
|                      |  |               |  |                 



18



---

Tax periods open for inspection-

In accordance with current tax legislation, tax payments may not be considered definitive until they have been inspected by the tax authorities or the
corresponding four-year prescription period has expired.

At the year-end the Company had the last four years open for review by the tax
inspection authorities for all applicable taxes. In the event of a tax review, no material additional liabilities are expected to arise and accordingly no provisions have been established in the annual financial statements.

15. Guarantee commitments to third parties and other contingent liabilities

At the year-end, the Company had no guarantee commitments to third parties nor any other contingent liabilities that could have a material impact on the accompanying financial statements.

16. Income and expenses

The breakdown of
the Operating inputs line of the accompanying income statement for 2006 is as follows:



|                                        |  |              |  
|--------------------------------------- |  | ------------ | -
|Operating inputs                        |  | EUR          |  
|Purchase of raw materials               |  | 5,487,712.36 |  
|Purchase of other suppliers             |  | 236,770.77   |  
|Work performed by third parties         |  | 5,608.96     |  
|Discounts on purchases                  |  |              |  
|Volume discounts on purchases           |  |              |  
|Change in raw material inventories      |  | 40,691.68    |  
|Change in inventories of inputs         |  | (8,382.85    | )
|Change in inventories of finished goods |  | 135,116.01   |  
|                                        |  |              |  
|Total                                   |  | 5,897,516.93 |  
|                                        |  |              |  



19



---

The breakdown of the amount recognised as social security charges in the accompanying income statement
for 2006 is as follows:



|                                             |  |           
|-------------------------------------------- |  | ----------
|Social security charges                      |  | EUR       
|Social security charges borne by the Company |  | 248,362.08
|Contributions to supplementary pension plans |  | 0.00      
|Other expenses                               |  | 0.00      
|                                             |  |           
|                                             |  | 248,362.08
|                                             |  |           

The breakdown of the amount recognised under changes in trade provisions and provisions for
uncollectible receivables in the accompanying income statement for 2006 is as follows:



|                                                                              |  |             
|----------------------------------------------------------------------------- |  | ------------
|Change in provisions and losses for uncollectible receivables                 |  | EUR         
|Loss on uncollectible trade receivables Allocation to provision for bad debts |  | 0.006,454.48
|Application of provision for bad debts                                        |  | 0.00        
|                                                                              |  |             
|                                                                              |  | 6,454.48    
|                                                                              |  |             



20



---

Group companies and associated undertakings:

Balances outstanding with Group companies and associated undertakings at 31 December 2006 were as follows:



|                               |          |            |             |            |  
|------------------------------ | -------- | ---------- | ----------- | ---------- | -
|                               |          | EUR        |            
|                               | Payables |            | Receivables |           
|Group company                  |          |            |             |            |  
|Corenso France, S.A.S.         |          | 44,559.66  |             | 499,734.09 |  
|Corenso United Oyj Ltd.        |          |            |             | 185,367.84 |  
|Corenso (UK) LTD               |          |            |             | 6,810.21   |  
|Stora Enso Oyj                 |          | 160,501.52 |             | (200.00    | )
|Stora Enso España, S.A.        |          |            |             | 2,096.58   |  
|Stora Enso Barcelona, S.A.     |          | 74,379.11  |             |            |  
|Stora Enso Beteilingungen GMBH |          |            |             | 0.00       |  
|Corenso Elfes GMBH & Co        |          |            |             | 3,296.14   |  
|                               |          |            |             |            |  
|TOTAL                          |          | 279,440.29 |             | 697,104.86 |  
|                               |          |            |             |            |  



21



---

Transactions with Group companies and associated undertakings concluded in the year were as follows:



|                               |  |                                  |  |                                 |  |                |  |         
|------------------------------ |  | -------------------------------- |  | ------------------------------- |  | -------------- |  | --------
|                               |  | EUR                             
|Company                        |  | Income and provision of services |  | Purchases and external services |  | Interestincome |  | Dividend
|Corenso France, S.A.S.         |  | 164,780.53                       |  | 3,610,878.76                    |  |                |  |         
|Corenso United Oyj Ltd.        |  |                                  |  | 1,381,997.38                    |  |                |  |         
|Corenso (UK) LTD               |  |                                  |  | 26,978.90                       |  |                |  |         
|Stora Enso Oyj Ltd             |  |                                  |  | 7,866.65                        |  |                |  |         
|Stora Enso España, S.A.        |  |                                  |  | 8,020.92                        |  |                |  |         
|Stora Enso Barcelona, S.A.     |  | 209,314.34                       |  |                                 |  |                |  |         
|Stora Enso Beteilingungen GMBH |  |                                  |  | 7,866.29                        |  |                |  |         
|Corenso Elfes GMBH & Co        |  |                                  |  | 11,912.70                       |  |                |  |         
|Newark San Andres, S.L         |  |                                  |  |                                 |  |                |  |         

Transactions in foreign currency concluded in the year were as follows:



|                                 |  |          
|-------------------------------- |  | ---------
|Transactions in foreign currency |  | EUR      
|Purchases                        |  | 26,978.90
|Sales                            |  | 0.00     

The breakdown of net sales on ordinary activities in 2006 was as follows:



|                |  |    
|--------------- |  | ---
|Sales by market |  | %  
|Spain           |  | 45 
|Export markets  |  | 55 
|                |  |    
|Total           |  | 100
|                |  |    



22



---

The average number of persons employed by the Company in 2006 was as follows:



|                      |  |     
|--------------------- |  | ----
|Professional category |  | Num.
|Directors             |  | 1   
|Administrative staff  |  | 7   
|Technical staff       |  | 30  
|                      |  |     
|Total                 |  | 38  
|                      |  |     

Extraordinary income and expense in the year:

The Company incurred no extraordinary expenses in the year. Extraordinary income in the amount of EUR 33.92 was recorded, corresponding to the receipt of
an indemnity payment.

17. Other information

Directors remuneration and other information

No compensation was paid to members of the
Companys governance bodies by way of salaries, attendance fees or other remuneration.

In addition, the Company has extended no
advances or loans to its Directors, nor has it assumed any pension or life insurance commitments in their respect.

Directors
shareholdings and functions:

In accordance with article 127 ter.4 of the Spanish Limited Companies Act, the Companys Directors
have declared the following:

1. That they own interests in the capital of other companies engaged in the same, similar or complementary
activities, the details of which are described below:



23



---

|                       |  |                                                                  |  |                                                                                           |  |                    |  
|---------------------- |  | ---------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------- |  | ------------------ | -
|Director               |  | Company in which interest held                                   |  | Activity                                                                                  |  | %ownershipinterest |  
|Corenso France, S.A.S  |  | Mandriladora Alpesa, S.L                                         |  | Manufacture of cardboard containers, cores and tubes                                      |  | 50                 | %
|Newark San Andrés, S.L |  | Videcart, S.A                                                    |  | Manufacture and sale of various types of solid and corrugated cardboard                   |  | 100                | %
|Newark San Andrés, S.L |  | Paper, S.A.                                                      |  | Manufacture and marketing of cardboard containers, covers and bases                       |  | 99,99              | %
|Newark San Andrés, S.L |  | Derivados del Cartón, S.L                                        |  | Purchase, sale, import, export, processing, printing and marketing of cardboard and paper |  | 1,67               | %
|Newark San Andrés, S.L |  | Servicios y Mantenimientos de Papeleras, S.L                     |  | Maintenance of paper and cardboard factories                                              |  | 3,33               | %
|Newark San Andrés, S.L |  | Desperdicios de Papel del Norte, S.L                             |  | Waste paper recovery and reclassification of materials suitable for recycling             |  | 34                 | %
|Newark San Andrés, S.L |  | SARL Redmat                                                      |  | Waste paper recovery and reclassification of materials suitable for recycling             |  | 13                 | %
|Newark San Andrés, S.L |  | Fibor Packaging B.V                                              |  | Manufacture and sale of various types of solid cardboard                                  |  | 90,91              | %
|Newark San Andrés, S.L |  | Tubembal - Transformacäo de Papel e Comércio de Embalagens, S.A. |  | Paper processing, import, export and sale of packaging materials.                         |  | 20                 | %

2. That they hold positions of responsibilities or perform functions in other companies engaged in
the same, similar or complementary activities, the details of which are described below:



24



---

|                                                       |  |                                                                 |  |                                                                                                                                         |  |                   
|------------------------------------------------------ |  | --------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------
|Director                                               |  | Company in which interest held                                  |  | Activity                                                                                                                                |  | Position          
|                                                       |  |                                                                 | 
|Corenso France, S.A.S                                  |  | Mandriladora Alpesa, S.L                                        |  | Manufacture of cardboard containers, cores and tubes                                                                                    |  | Board member      
|                                                       |  |                                                                 | 
|Thierry Montouroy (Representing Corenso France, S.A.S) |  | Corenso France, S.A.S.                                          |  | Manufacture and sale of stationery                                                                                                      |  | Financial Director
|                                                       |  |                                                                 | 
|Thierry Montouroy (Representing Corenso France, S.A.S) |  | Mandriladora Alpesa, S.L                                        |  | Manufacture of cardboard packaging, cores and tubes                                                                                     |  | Board Secretary   
|                                                       |  |                                                                 | 
|Paul Grant (Representing Newark San Andrés, S.L)       |  | Servicárrega, S.L                                               |  | Collection and discharge of vehicles and containers of all kinds, cardboard processing, cleaning and maintenance of industrial premises |  | Sole Director     
|                                                       |  |                                                                 | 
|Paul Grant (Representing Newark San Andrés, S.L)       |  | Servicios y Mantenimientos de Papeleras, S.L                    |  | Maintenance of paper and cardboard factories                                                                                            |  | Sole Director     
|                                                       |  |                                                                 | 
|Paul Grant (Representing Newark San Andrés, S.L)       |  | SARL Redmat                                                     |  | Waste paper recovery and reclassification of materials suitable for recycling                                                           |  | Joint Director    
|                                                       |  |                                                                 | 
|Paul Grant (Representing Newark San Andrés, S.L)       |  | Tubembal - Transfomacäo de Papel e Comercio de Embalagens, S.A. |  | Paper processing, import, export and sale of packaging materials.                                                                       |  | Board member      

3. That they carried out no activities, either on their own behalf or on behalf of third parties,
in other companies engaged in the same, similar or complementary activities.

Auditors fees:

The fees paid to the Companys auditors Audiargi, S.L. for performing the audit of the annual financial statements for 2006 amounted to EUR 10,370.

Environmental issues:

The Company made no investments nor incurred any expenses of an environmental nature in the year ended 31 December 2006, and currently has no projects of this type underway.

The Company received no subsidies or other form of environment-related income in the course of 2006.

At the year-end the Company had no provisions for contingent environmental risks since the Director is of the opinion that it faces no significant
contingencies that could result in litigation, the payment of indemnities or any other type of proceedings.



25



---

18. Post-balance sheet events

No events have occurred since the balance sheet close that in the opinion of the Company could have a material impact on the true and fair view provided by the accompanying annual financial statements.



26



---

19. Cash flow statement

The cash flow statements for the years ended 31 December 2006 and 2005, which is expressed in euros, is as follows:

Cash flow statement



|                                                                  |  |            |  |            |  |           
|----------------------------------------------------------------- |  | ---------- |  | ---------- |  | ----------
|                                                                  |  | Euros     
|APPLICATIONS                                                      |  | 2006       |  | 2005 (*)   |  | 2004 (*)  
|1. Cash flows applied in Group operations                         |  |            |  |            |  |           
|2. Start-up costs and debt formation expenses                     |  |            |  |            |  |           
|3. Acquisition of fixed assets:                                   |  |            |  |            |  |           
|a) Intangible assets                                              |  |            |  |            |  |           
|b) Property, plant and equipment                                  |  | 22,607.68  |  | 33,090.51  |  | 155,857.00
|c) Financial investments                                          |  |            |  |            |  |           
|4. Acquisition of treasury shares                                 |  |            |  |            |  |           
|5. Capital reduction                                              |  |            |  |            |  |           
|6. Dividends                                                      |  |            |  | 184,926.49 |  | 192,357.91
|7. Cancellations or transfers to short-term                       |  |            |  |            |  |           
|a) of other receivables                                           |  |            |  |            |  |           
|b) of other payables                                              |  |            |  |            |  |           
|8) Provision for liabilities and charges                          |  |            |  |            |  |           
|                                                                  |  |            |  |            |  |           
|TOTAL APPLICATIONS                                                |  | 22,607.68  |  | 218,017.00 |  | 348,214.91
|                                                                  |  |            |  |            |  |           
|EXCESS OF SOURCES OVER APPLICATIONS INCREASE IN WORKING CAPITAL)  |  | 242,568.97 |  |            |  | 167,140.72
|                                                                  |  |            |  |            |  |           
|                                                                  | 
|                                                                  |  | Euros     
|SOURCES                                                           |  | 2006       |  | 2005 (*)   |  | 2004 (*)  
|1. Cash flows from Group operations                               |  | 228,169.39 |  | 162,245.27 |  | 485,355.63
|2. Capital contributions                                          |  |            |  |            |  |           
|a) Capital increase                                               |  |            |  |            |  |           
|b) To offset losses                                               |  |            |  |            |  |           
|3. Deferred income                                                |  |            |  |            |  |           
|4. Long-term borrowings                                           |  |            |  |            |  |           
|5. Disposal of fixed assets                                       |  |            |  |            |  |           
|a) Intangible assets                                              |  |            |  |            |  |           
|b) Property, plant and equipment                                  |  | 37,007.26  |  |            |  | 30,000.00 
|6. Sale of treasury shares                                        |  |            |  |            |  |           
|7.Cancellation of credits                                         |  |            |  |            |  |           
|                                                                  |  |            |  |            |  |           
|TOTAL SOURCES                                                     |  | 265,176.65 |  | 162,245.27 |  | 515,355.63
|                                                                  |  |            |  |            |  |           
|EXCESS OF APPLICATIONS OVER SOURCES (DECREASE IN WORKING CAPITAL) |  |            |  | 55,771.73  |  |           
|                                                                  |  |            |  |            |  |           

The change in working capital is attributable to:



|                                    |          |            |            |            |           |           |          |            |             |            |  |          |           
|----------------------------------- | -------- | ---------- | ---------- | ---------- | --------- | --------- | -------- | ---------- | ----------- | ---------- |  | -------- | ----------
|CHANGE IN WORKING CAPITAL           |          | 2006       |            | 2005       |           | 2004     
|                                    | Increase |            | Decrease   |            | Increase  |           | Decrease |            | Increase    |            |  | Decrease
|1. Inventories                      |          |            |            | 167,424.84 |           | 66,156.93 |          |            |             | 68,242.42  |  |          |           
|2. Receivables                      |          |            |            | 287,475.20 |           |           |          | 112,809.10 |             | 266,695.99 |  |          |           
|3. Payables                         |          | 220,251.47 |            |            |           |           |          | 18,918.03  |             | 94,413.97  |  |          |           
|4. Cash and equivalents             |          | 477,217.54 |            |            |           | 9,798.47  |          |            |             |            |  |          | 262,211.66
|5. Short-term financial investments |          |            |            |            |           |           |          |            |             |            |  |          |           
|6. Asset accruals                   |          |            |            |            |           |           |          |            |             |            |  |          |           
|                                    |          |            |            |            |           |           |          |            |             |            |  |          |           
|CHANGE IN WORKING CAPITAL           |          | 697,469.01 |            | 454,900.04 |           | 75,955.40 |          | 131,727.13 |             | 429,352.38 |  |          | 262,211.66
|                                    |          |            |            |            |           |           |          |            |             |            |  |         
|                                    |          |            | 242,568.97 |            | 55,771.73 |           |         |            | (167,140.72 | )          |  |        
|                                    |          |            |            |            |           |           |          |            |             |            |  |          |           

The reconciliation between accounting profit and the cash flows shown in the cash flow statement
is as follows:



|                                                                    |          |            |   |          |            |          |            |  
|------------------------------------------------------------------- | -------- | ---------- | - | -------- | ---------- | -------- | ---------- | -
|Reconciliation of accounting profit with cash flows from
operations |          | Euros      |   |          | Euros      |          | Euros      |  
|                                                                    | 2,006.00 |            |   | 2,005.00 |            | 2,004.00 |           
|Accounting profit                                                   |          | 142,518.86 |   |          | 26,466.60  |          | 369,852.98 |  
|Depreciation and amortisation                                       |          | 119,657.79 |   |          | 135,778.67 |          | 145,782.65 |  
|Charge to provisions for property, plant and equipment              |          | 3,000.00   |   |          |            |          |            |  
|Gain on sale of fixed assets                                        |          | (37,007.26 | ) |          |            |          | (29,939.93 | )
|Proportion of capital grants taken to income of current period      |          |            |   |          |            |          | (340.07    | )
|cash flows from operations                                          |          | 228,169 39 |   |          | 162,245.27 |          | 485,355.63 |  



28



---

20. Explanation added for translation to English

These financial statements are presented on the basis of accounting principles generally accepted in Spain. Certain accounting practices applied by the
Company that conform with generally accepted accounting principles in Spain may not conform with generally accepted accounting principles in other countries.



29



---

21. Net income and Shareholders equity reconciliation to US GAAS and US cash flow statement



|              |  |                  |  | 
|------------- |  | ---------------- |  | 
|COMPANY EUROS |  | CORENSO TOLOSANA |  | 



|                                                  |  |            |  |                     |  |            |  |            |  |            |  |           
|------------------------------------------------- |  | ---------- |  | ------------------- |  | ---------- |  | ---------- |  | ---------- |  | ----------
|                                                  |  | NET INCOME |  | SHAREHOLDERS EQUITY
|                                                  |  | YEAR ENDED |  | YEAR ENDED         
|INCOME STATEMENT                                  |  | 12/31/2006 |  | 12/31/2005          |  | 12/31/2004 |  | 12/31/2006 |  | 12/31/2005 |  | 12/31/2004
|NET INCOME AS SHOWN IN THE FINANCIAL STATEMENTS   |  | 142,519    |  | 26,467              |  | 369,853    |  | 3,333,718  |  | 3,191,199  |  | 3,349,659 
|ITEMS HAVING EFFECT OF INCREASING REPORTED INCOME |  |            |  |                     |  |            |  | 0          |  | 0          |  |           
|ITEMS HAVING EFFECT OF DECREASING REPORTED INCOME |  |            |  |                     |  |            |  |            |  |            |  |           
|                                                  |  |            |  |                     |  |            |  |            |  |            |  |           
|NET INCOME ACCORDING TO US GAAP                   |  | 142,519    |  | 26,467              |  | 369,853    |  | 3,333,718  |  | 3,191,199  |  | 3,349,659 
|                                                  |  |            |  |                     |  |            |  |            |  |            |  |           



30



---

CORENSO TOLOSANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

0        IN EUROS



|                                                                                    |  |                   |  |            |  |           
|----------------------------------------------------------------------------------- |  | ----------------- |  | ---------- |  | ----------
|                                                                                    |  | FOR THE 12 MONTHS
|                                                                                    |  | 12/31/2006        |  | 12/31/2005 |  | 12/31/2004
|OPERATING ACTIVITIES :                                                              |  |                   |  |            |  |           
|Net earnings                                                                        |  | 142,519           |  | 26,467     |  | 369,853   
|Adjustments to reconcile net earnings to net cash provided by operating activities: |  |                   |  |            |  |           
|Loss on sales of marketable securities                                              |  |                   |  |            |  |           
|Depreciation of property, plant and equipment                                       |  | 122,658           |  | 135,779    |  | 145,783   
|Amortization of other assets                                                        |  |                   |  |            |  |           
|(Gain) loss on sale of property, plant and equipment                                |  | -37,007           |  |            |  | -29,940   
|Advances to & investments in subsidiaries                                           |  |                   |  |            |  |           
|Equity in net earnings                                                              |  |                   |  |            |  |           
|Deferred income taxes                                                               |  |                   |  |            |  |           
|Changes in assets and liabilities excluding the effects of acquisitions:            |  |                   |  |            |  |           
|Decrease/(increase) in marketable securities                                        |  |                   |  |            |  |           
|Decrease/(increase) in accounts receivable                                          |  | 287,475           |  | 112,809    |  | -266,696  
|Decrease/(increase) in inventories                                                  |  | 167,425           |  | -66,157    |  | -68,242   
|Decrease/(increase) in other current assets                                         |  |                   |  |            |  |           
|Decrease/(increase) in intercompany activities-us                                   |  |                   |  |            |  |           
|Decrease/(increase) in other assets                                                 |  |                   |  |            |  |           
|Decrease/(increase) in Goodwill/Step Up for Additional purchase price               |  |                   |  |            |  |           
|lncrease/(decrease) in accounts payable and accrued expenses                        |  | -220,251          |  | 18,918     |  | -94,414   
|lncrease/(decrease) in other liabilities                                            |  |                   |  |            |  |           
|                                                                                    |  |                   |  |            |  |           
|Net cash provided by operating activities                                           |  | 462,818           |  | 227,815    |  | 56,343    
|                                                                                    |  |                   |  |            |  |           
|                                                                                    |  |                   | 
|CASH FLOWS FROM INVESTING ACTIVITIES:                                               |  |                   |  |            |  |           
|Proceeds from sale of PPE                                                           |  | 37,007            |  |            |  | 29,660    
|Proceeds from sale of marketable securities                                         |  |                   |  |            |  |           
|Business acquisitions net of cash acquired                                          |  |                   |  |            |  |           
|Capital expenditures                                                                |  | -22,608           |  | -33091     |  | -155,857  
|Proceeds from sale of property, plant and equipment                                 |  |                   |  |            |  |           
|DIVIDENDS                                                                           |  |                   |  | -184926    |  | -192,358  
|Decrease/(increase) in restricted cash                                              |  |                   |  |            |  |           
|                                                                                    |  |                   |  |            |  |           
|Net cash used in investing activities                                               |  | 14,400            |  | -218,017   |  | -318,555  
|                                                                                    |  |                   |  |            |  |           
|                                                                                    |  |                   | 
|CASH FLOWS FROM FINANCING ACTIVITIES:                                               |  |                   |  |            |  |           
|Repayment of long-term debt                                                         |  |                   |  |            |  |           
|Proceeds from long-term debt                                                        |  |                   |  |            |  |           
|Deferred Financing Fees                                                             |  |                   |  |            |  |           
|Purchase of treasury stock                                                          |  |                   |  |            |  |           
|                                                                                    |  |                   |  |            |  |           
|Net cash used in financing activities                                               |  | 0                 |  | 0          |  | 0         
|                                                                                    |  |                   |  |            |  |           
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                |  | 477,217           |  | 9,798      |  | -262,212  
|CASH AND CASH EQUIVALENTS, beginning of period                                      |  | 377,744           |  | 367,946    |  | 630,157   
|                                                                                    |  |                   |  |            |  |           
|CASH AND CASH EQUIVALENTS, end of period                                            |  | 854,961           |  | 377,744    |  | 367,946   
|                                                                                    |  |                   |  |            |  |           



31



---

Translation of a report originally issued in Spanish. In the event of a discrepancy, the
Spanish-language version prevails.

Corenso Tolosana, S.A.

Management Report 2006

1. FINANCIAL
POSITION AND PERFORMANCE OF THE COMPANY

- Sales:

Net sales in 2006 totalled EUR 9,140,170.85, up 7% on the previous year. The rise in sales reflects an increase in volume business with key clients, predominantly in the paper sector, and an average price rise of 4%.

There were no significant changes in the geographical breakdown of sales relative to the previous year.

- Results of operations:

The Company
has positive working capital of EUR 2,688,119.72, higher than the prior-year level of EUR 242,568.97.

The 2006 cash flow figure of EUR
228,169.29 is also higher than the prior-year figure of EUR 65,924.12.

The improvement in the results of the Companys operations is
attributable to both higher volume sales and higher sale prices.

2. OUTLOOK

The Company has upbeat expectations for its business in 2007. The 2007 management plan foresees a continuation of the positive earnings growth trend.

3. RISK MANAGEMENT POLICY

The Company is exposed to credit risk via its trade debts. These amounts are recognised in the balance sheet net of provisions for bad debt, which is estimated by the Directors on the basis of experiences in past year and their assessment
of the current economic scenario. The Company has no significant concentration of credit risks, as its exposure is divided between a large number of clients. The Company has taken out commercial credit risk insurance to cover transactions with its
clients.

The Company is not exposed to interest rate risk and has no financial debts.

In addition, balance sheet and income statement exposure to future changes in effective exchange rates is not material since the volume of the
Companys transactions in currency other than the euro is insignificant.



32



---

4. POST-BALANCE SHEET EVENTS

The Directors of Corenso Tolosana, S.A. have no knowledge of any material event occurring since the close of the financial year ended 31 December
2006 that could have a material impact on the annual financial statements closed on the aforesaid date.

5. RESEARCH AND DEVELOPMENT

The Company has made no investments in research and development activities.

6. ACQUISITION OF TREASURY SHARES

The Company made no purchases of treasury shares, even on a temporary basis.



33



---

CERTIFICATE ATTESTING THAT

In accordance with the provisions of article 171.1 of the Spanish Limited Companies Act, at a meeting held on 21 March 2007 the Directors of Corenso
Tolosana, S.A. finalised the Companys annual financial statements and Management Report for the year ended 31 December 2006 for submission to the consideration and, if applicable, approval of shareholders at the Annual General Meeting.

That the aforesaid documents, which are presented as a single set, are produced on the preceding 25 sheets, which are numbered sequentially
and printed on one side only.

That, in accordance with the provisions of article 171.2 of the Spanish Limited Companies Act and in
indication of their approval of the annual financial statements and the Management Report for 2006, the Directors of the Company in office as of that date hereby sign the last page of this document, in Elduain, on 21 March 2007.

MR THIERRY MONTOUROY

MR THIERRY MONTOUROY

Representing Corenso France, S.A.S.



|                                                                |  |                                                
|--------------------------------------------------------------- |  | -----------------------------------------------
|Mr. PAUL GRANT                                                  |  | SIGNATURE WITHHELD IN INDICATION OF OPPOSITION.
|Representing Newark San Andres, S.L. Single
Shareholder Company



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