--  Net cash generated US$106 million   --  Good progress on debt refinancing   --  Global economy remains weak   --  Production curtailed in all regions to match supply to demand   --  Stronger Rand impacts SA margins unfavourably   --  Basic loss per share 12 US cents    --  Acquisition synergies on track    Summary                                     Quarter ended         Nine months ended                                    -------------         -----------------                                June    March    June       June     June                                2009     2009    2008       2009     2008   Key figures: (US$million)   Sales                        1,316    1,313   1,494      3,816    4,344   Operating (loss) profit         (7)       6     (23)        56      289      Special items - (gains)       losses *                    (6)     (23)    111        (61)     (12)      Operating (loss) profit       excluding special items    (13)     (17)     88         (5)     277      EBITDA excluding special       items **                    93       82     182        281      560   Basic (loss) Earnings Per    Share (US cents)***           (12)      (7)    (17)       (16)      37      Net debt ****             2,770    2,735   2,667      2,770    2,667   Key ratios (%)   Operating (loss) profit    to sales                     (0.5)     0.5    (1.5)       1.5      6.7      Operating (loss) profit       excluding special items       to sales                  (1.0)    (1.3)    5.9       (0.1)     6.4      Operating (loss) profit       excluding special items       to Capital                (1.1)    (1.6)    8.1       (0.2)     8.8      Employed (ROCE)**      EBITDA excluding special       items to sales             7.1      6.2    12.2        7.4     12.9      Return on average equity       (ROE) (%) ****           (12.7)    (7.5)  (15.1)      (5.4)    10.3      Net debt to total       capitalisation ****       57.5     59.4    61.5       57.5     61.5     --  *Refer to information in the published results regarding more details       on special items   --  **Refer to Supplemental Information in the published results for the       definition of the term and reconciliation of profit/ loss for the       period to EBITDA   --  ***Comparative figures have been revised in accordance with IAS33 to       reflect the impact of the rights offer   --  ****Refer to Supplemental Information in the published results for the       definition of the term    --  The table above has not been audited or reviewed.     The quarter under review  

Commenting on the results, Sappi chief executive Ralph Boettger said:

"Strong cash generation of US$106 million was a feature of our results for the quarter and benefited from management's actions to reduce working capital and limit capital expenditure to essential items.

Global economic conditions remained depressed in the quarter resulting in continued weak conditions in most of our coated paper markets. Conditions in pulp markets, including the chemical cellulose markets, improved significantly in terms of both demand and US Dollar prices, late in the quarter.

Globally our sales increased marginally on the prior quarter but were 3% down on the equivalent quarter last year, despite the additional capacity from our European acquisition earlier in the year. Average selling prices realised by the group for the quarter were approximately 9% lower than average prices realised a year ago. We continued to match our supply to demand and manage our inventory levels by curtailing production during the quarter.