NORPAC Announces Price Increase for UGW Grades

Containerboard production was 3.8 percent higher compared to June 2016. The month-over-month average daily production compared to May 2017 was 0.7 percent higher. The containerboard operating rate for June decreased from 99.3 percent to 96.3 percent, which was, however, 1.7 percent higher compared to June of last year.

The board of directors and management of Norske Skog are pleased to announce that it has managed to broker a consensual solution between the Unsecured Committee, the Senior Secured Noteholder Committee and major shareholders. The two bondholder committees and the major shareholders have agreed on a split of the equity ownership of Norske Skogindustrier ASA, following the recapitalization transaction that these groups will support. With this development, over 80% of the senior secured noteholders and more than 50% of the unsecured noteholders have now indicated their willingness to support such an adjusted recapitalization proposal. Therefore, the relevant boards in the Norske Skog group have resolved to revise the terms of the ongoing consent solicitation in accordance with the split agreed. The formal consent solicitation deadline is extended until Wednesday 25 October at 17:00 CET to allow adequate time for the group's noteholders to submit their formal consents. Click Read More below for additional information.

Comments to Results of Operations - Comparison of Three Months Ended December 31, 2017 to Three Months Ended December 31, 2016: • Net sales for the fourth quarter of 2017 decreased by $7 million compared to the fourth quarter of 2016. The sales decline was primarily attributable to a decrease in total sales volume due to the general softening of demand for coated papers and our capacity reductions at our Androscoggin Mill. • Gross margin, excluding depreciation, amortization and depletion expenses, decreased from 16.6% of net sales in the fourth quarter of 2016 to 13.3% in the fourth quarter of 2017. Comments to Results of Operations - Comparison of 12 Months Ended December 31, 2017 to 12 Months Ended December 31, 2016: • Net sales for the 12 months of 2017 decreased by $180 million compared to the 12 months of 2016. The sales decline was attributable to a decrease in total sales volume and a decrease in pricing, partially offset by improvement in product mix. The decrease in volume and pricing were driven by general softening of demand for coated papers and our capacity reductions at the Androscoggin Mill. • Gross margin, excluding depreciation, amortization and depletion expenses, decreased from 11.1% of net sales in the 12 months of 2016 to 9.1% in the 12 months of 2017. Gross margin was favorably impacted in 2016 by $22 million and in 2017 by $4 million as a result of gains included in cost of products sold, associated with the elimination of certain postretirement benefit costs. Click Read More below for additional information.