March 1, 2004 The plantation company, SPFL (Southland Plantation Forest Company of New Zealand Ltd..) attained Forest Management Certification from the FSC The plantation company, SPFL (Southland Plantation Forest Company of New Zealand Ltd..) is located in Invercargill, South Island, New Zealand, and was established by Oji Paper Co.,Ltd (OJI) and Itochu Corporation (ITOCHU) in 1992, and then joined by Fuji Xerox Co.,Ltd. and Fuji Xerox Office Supply Co., Ltd. This company attained Forest Management Certification from the FSC (Forest Stewardship Council, head office in Germany) In New Zealand, Panpac Forest Products Ltd. (OJI's subsidiary) and many other companies have already acquired FSC certification, however those are for native forest or plantations based on softwood. The eucalyptus plantation of SPFL will become first FSC certified plantation based on hardwood in New Zealand. FSC is NGO (non-governmental organization) established to familiarize sustainable forest management, and the certification covers managed forests sustaining the ecosystem, forest products, woodchip and paper originating from the forest. SPFL has planted about 10,000ha of eucalyptus since 1992 and are scheduled to start harvesting from October this year (13th year). The trees are processed to woodchip and those are exported to OJI's pulp & paper factory as FSC certified woodchip. SPFL has paid maximum attention to unity of local society and environment, and we can say the acquisition of certification demonstrates this activity. Another major reason SPFL have proceeded with this acquisition is that consumer demand for FSC certified paper products is increasing. Fuji Xerox Office Supply acquired certification of CoC (Chain of Custody, certification of administration processing and distribution) for their distribution and sales, and has already started sales of copy papers which are named "C2", "J", "Ncolor, and are made from FSC certified woodchips at OJI's Ebetsu and Nichinan mill, displaying the FSC logo mark (certified mark). Once SPFL starts woodchip export, it will be possible to mix FSC certified wood from its own plantation into the material for those FSC certified papers. Individual philosophy of SPFL shareholders Oji Paper Co., Ltd. 140,000ha of plantation have been established and it is planned to expand to 200,000ha by 2010. OJI requests all overseas plantation subsidiaries to acquire FSC certification according to the timing of commencement of harvesting. Japanese capital investment in overseas plantation is being focused in our country at the time, the problem of global warming is becoming a stronger world concern. OJI would like to keep relating to the worldwide issue through paper manufacture and play a positive role. Itochu Corporation ITOCHU has developed plantation projects with the philosophy of expansion of the pulp and paper business by development of our own recoverable plantation resource that is good for ecology, and intensification of projects contributing to prevention of global warming. Also regarding FSC, ITOCHU acquired CoC certification and started FSC certified woodchip first among all Japanese trading houses, and have positively advanced dealing with certified products. Fuji Xerox Co.,Ltd / Fuji Xerox Office Supply Co.,Ltd. Fuji Xerox and affliates recognize that proceeding with forest conservation is the responsibility of the companies as those are trading concerns which consume papers from natural resource, and have acted in many areas by putting the consolidated company, Fuji Xerox Office Supply at the core. One of the overall company activities is "Eco-Conscious Pulp Plan". By maintaining a high mixture ratio of used pulp and plantation pulp and certified pulp as a recoverable resource, we are aiming the decrease material consumption which gives high benefits to the environment. In addition to this, from the consideration of "self-sufficiency", we are joining SPFL. SPFL Company Summary 1. Project Name : South Plantation Forest Company of New Zealand Ltd. 2. Location : Invercargill, Southland, New Zealand 3. Established : September 1992 4. Capital : NZ$22,200,000 5. Share Ratio : Oji Paper Co.,Ltd. 51%�CItochu Corporation 30%, Fuji Xerox Co.,Ltd. 10%, Fuji Xerox Office Supply Co.,Ltd. 9% 6. Species : Eucalyptus Nitens 7. Plantation Area : 9,913ha (as of March 2004) 8. Target : 10,000ha 9. Operation : For the purpose of acquiring its own resource for hardwood chip material, SPFL has planted Eucalyptus Nitens on farmland with the target of total 10,000ha in the Southland area located at south end of South Island, New Zealand. Harvesting will start from this year (13th year) and the harvested area is replanted to maintain same total area. Forestry Land is retained mainly by purchase and plantation operation is managed by SWEL (South Wood Export LtdD., a forestry company owned 100% by ITOCHU), based on the consignment agreement.