Wood Fiber Costs for the Global Pulp Industry in the 3Q/10 Were Close to the

Highest Level in Two Years

The cost for wood fiber accounts for almost 60 percent of the total production costs when
manufacturing pulp. Both softwood and hardwood wood fiber price indices, SFPI and HFPI, have
increased about six percent over the past year, according to the Wood Resource Quarterly.

Seattle, WA, November 18, 2010 --(PR.com)-- After a temporary drop in the 2Q, the Softwood Wood
Fiber Price Index (SFPI) increased again in the 3Q to the highest level seen during the financial crises,
according the Wood Resource Quarterly. The SFPI was US$99.80/odmt in the 3Q, up $1.51/odmt from
the previous quarter and $6.68/odmt from the same quarter in 2009. Prices did not go up only because of
a weakening US dollar against most other currencies, but also because prices in the local currencies were
up in Europe, Western US and Western Canada.

Wood chip prices in Western Canada increased again in the 3Q, because of their linkage to pulp prices.
However, they did not go up as dramatically on a quarter-by-quarter basis as they did from the 1Q to the
2Q earlier this year. The latest uptick to $104/odmt has resulted in prices at levels not seen in 14 years.
Pulp mills in the region now have some of the highest chip prices in North America, as reported in the
North American Wood Fiber Review.

Global hardwood fiber prices also trended upward, both in local currencies and US dollar terms in most
regions covered by the WRQ. The biggest increases occurred in Europe, where prices were up 5-10
percent from the previous quarter. In France, Finland, Germany and Spain, hardwood pulplog prices were
up in the local currency because of higher demand from the pulp industry, which was running at higher
operating rates this fall.

Only the US South and Eastern Canada had lower hardwood fiber prices this quarter as compared to the
previous quarter. As a result of higher fiber prices in most regions worldwide, the Hardwood Wood Fiber
Price Index (HFPI) was up $1.51/odmt to $104.88/odmt. In the 3Q the Index was 5.8 percent higher than
a year ago.

Over the past two years, wood fiber costs for the global pulp industry have grown faster than other
production costs, including energy, chemical and labor costs, according to data compiled by Fisher
International. In the 2Q/10, wood fiber costs accounted for 59 percent of the total variable production
costs as compared to 55 percent in the same quarter of 2008. Wood fiber costs continue to be the most
volatile cost component for pulp manufacturers worldwide.

Global timber market reporting is included in the 52-page publication Wood Resource Quarterly. The
report, established in 1988 and with readers in over 25 countries, tracks sawlog, pulpwood, lumber and
pellet prices in key regions around the world and also includes regular updates of the latest developments
in international timber, pulp, lumber and biomass markets.

Contact Information

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Wood Resources International LLC
Hakan Ekstrom
info@wri-ltd.com
www.woodprices.com

###

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Contact Information:
Wood Resources International LLC
Hakan Ekstrom
425-402-8809
info@wri-ltd.com
www.woodprices.com

Online Version of Press Release:

You can read the online version of this press release at: http://www.pr.com/press-release/278109

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