NEWS RELEASE

FORSCOT RESEARCH CONFIRMS QUALITY OF SITKA SPRUCE PULP

Research commissioned by Forscot, the company planning to build and operate a £1 billion integrated forest products operation at Invergordon in the northeast of Scotland, has confirmed that pulp made from Scottish Sitka spruce is at least as good as the best market pulps of a similar grade, which are currently only produced in North America and Canada.

Sitka spruce pulp was also found to be the most energy efficient pulp on the market, because it develops its strength characteristics faster than other softwood pulps; and it is one of the most environmentally responsible pulps on the market, because it can be bleached to commercial brightness levels using a high proportion of ozone.

The research also proved that the pulp has excellent binding qualities, making it an ideal ingredient for providing the strength required in the manufacture of recycled tissue products.

Forscot’s managing director, Tharald Frette, said: ‘These results confirm that commercially grown Scottish Sitka spruce has enormous potential for establishing a world class pulp and paper mill in Scotland.

‘The pulp that Forscot plans to produce will provide UK and European papermakers with a high quality raw material, at competitive prices, for the production of publication papers and recycled tissue products.’

The pulp research was carried out by Finnish company, SciTech, under the supervision of Professor Panu Tikka of Helsinki University of Technology, with the support of Ross and Cromarty Enterprise and the Forestry Commission.

Forscot is currently in the process of raising interim funding of £5 million - £10 million, for which the company is approaching potential trade partners and others with an interest in the success of the project. This will be used to secure the site, complete the detailed engineering design, apply for the necessary planning and environmental permits and recruit a senior management team.

Date: 2 February 2006