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Timothy P. Leybold

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We believe it is necessary for us to obtain this additional financing flexibility to meet our semi-annual bond interest payment and working capital needs for this 90 day period. While we are beginning to realize the favorable effect of recent industry pricing trends in the first quarter of 2006, we have experienced significantly higher energy costs at our U.S. paper mill, as well as higher than expected fees to complete the re-audit of our prior financial statements.

While our team is working diligently with our independent accounting firm to complete the audit process, this amendment to our loan agreement allows us to make the $7.5 million interest payment on April 17. We are entering the strong seasonal period of our corrugated box business, and with recent favorable pricing trends in our industry, this additional temporary availability under our revolver should be sufficient to meet our near term cash requirements.

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