Mr. Lee continued: "Overall, pulp prices in the fourth quarter of 2010 remained near historically high levels but were somewhat lower than the third quarter. At the end of 2010, list prices in Europe were approximately $950 per ADMT and in North America and China were approximately $960 and $840 per ADMT, respectively."

Mr. Lee continued: "We are pleased with the Celgar Green Energy Project, which was substantially completed at the end of the third quarter and generated €3.4 million in revenues in the fourth quarter. In the fourth quarter, we implemented customary equipment modifications to optimize energy generation to ensure the turbine performs as designed."

Mr. Lee added: "In the fourth quarter of 2010, we effectively extended the maturity of our senior unsecured indebtedness by purchasing and thereby cancelling $289.5 million in aggregate principal amount of our 9.25% senior notes due 2013 (the '2013 Notes') with the net proceeds of a private offering of $300 million in aggregate principal amount of 9.5% senior notes due 2017 and cash on hand. We will redeem the remaining $20.5 million of outstanding 2013 Notes on February 15, 2011."

Mr. Lee continued: "In the short term, pulp prices have increased by approximately $20 per ADMT in China in February 2011 and producers have announced an increase of $30 per ADMT in selected markets to take effect in March 2011. Additionally, based on the most recently published data, NBSK producer inventories are around 25 days which generally signals strong demand."

Mr. Lee concluded: "We are well positioned for a positive 2011. Our current short to medium-term pricing and demand outlook is positive. This, coupled with our world-class mills, should permit us to continue to enhance value for our stakeholders."

Three Months Ended December 31, 2010 Compared to Three Months Ended December 31, 2009

Pulp revenues for the three months ended December 31, 2010 increased by approximately 50% to €232.2 million from €154.9 million in the comparative period of 2009, due to higher pulp prices and a stronger U.S. dollar relative to the Euro. Revenues from the sale of excess energy increased by approximately 31% in the fourth quarter to €13.4 million from €10.2 million in the same quarter last year, primarily as a result of energy sales from the Celgar Green Energy Project in the fourth quarter of 2010.

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