NEW CORRUGATING ROLL COMPANY

Tiruna of Pamplona Spain and Fosber America, Inc. of Green Bay, Wisconsin announce the formation of a new Corrugating Roll Company "Tiruna America, Inc." This new 50/50 joint venture will be located in Green Bay, Wisconsin.

Fosber America has over 25 years experience in corrugated machinery and has recently introduced the new 'SMART' Single Facer provided with Tiruna corrugating rolls. Tiruna, of Pamplona Spain, is the leading manufacturer of corrugating rolls in Europe, now celebrating its 82nd year in business.

Tiruna America, Inc. will utilize Fosber's expertise in sales and service to the US market in conjunction with Tiruna's expertise in manufacturing high quality, precision corrugating rolls. The new factory is under construction in Green Bay, which will include all equipment required to offer complete new and reground corrugating rolls and pressure rolls for all types of Single Facers. The new equipment, including a state-of-the-art precision grinder, is on order and scheduled for installation in 2003.

Tiruna America, Inc. will use the same successful formula which launched Fosber America to become the leading supplier of Dry End equipment in North America. The combination of European and US manufacturing, supported by US sales, service and parts will assure Tiruna America will be very competitive and offer first class after-sales services.

Jose M. Guibert, International Director of Tiruna Spain, says, "Our company is very happy about the opportunity to offer our product line in the US. We have never formally entered the North American market, although we have over 150 sets of rolls operating in the US through various agencies and other OEM agreements. We are very familiar with the US market and believe that our technology, including the patented DDS (Dry Dynamic System) and the IDD (special pressure roll to eliminate vibrations in the Single Facer), will be well received. We have been searching for the right partner and believe that Fosber America provides the reputation, stability and commitment we have been looking for."

Jeff Pallini, Vice-President/General Manager of Fosber America, says, "We are very excited about the opportunity to work with Tiruna on this joint venture. Tiruna is a family owned business that is well run and has a strong focus on technology and after market support. We are confident that we will be able to offer our customers the same level of competitiveness and service that we have on the dry end machinery. The timing is perfect as our new Wet End is also scheduled to launch in 2003. This positions Fosber to offer the complete corrugator and all of its services to the industry."