e fixed interest rates.

00-00-0000
e fixed interest rates.

A summarised PaperlinX group statement of Financial Position is asfollows:

DECEMBER 2001 JUNE 2001

Current Assets $m 1,085.8 1,206.5Non current assets $m 1,290.5 1,502.7Total Assets $m 2,376.3 2,709.2

Current Liabilities $m 692.0 808.1Non Current Liabilities $m 480.5 723.4Total Liabilities $m 1,172.5 1,531.5

Shareholders Equity $m 1,203.8 1,177.7

KEY BALANCE SHEET RATIOSNet Debt $m 404.4 690.7Net debt to net debt and

shareholders equity % 25.2 37.0Net debt to shareholders

equity % 33.6 58.6Net tangible assets per share $ 3.07 2.99

STATEMENT OF FINANCIAL PERFORMANCE

PAPERLINX LIMITED AND CONTROLLED ENTITIES6 months ended 31 December 2001 2000

$M $MSALES REVENUE 1,518.5 842.1

Operating Profit from Ordinary

Activities before depreciation,

amortisation, interest, significant

items and income tax 149.7 119.9

Depreciation and amortisation (36.9) (27.0)

Net Interest Expense (18.5) (18.1)

Operating profit from Ordinary

Activities before significant

items and income tax 94.3 74.8

Income tax expense on Operating profit (29.5) (22.7)

Operating profit after tax and before

significant items and including

outside equity interests 64.8 52.1

Significant items before income tax 0 0

Income tax benefit on significant items 0 0

OPERATING PROFIT/(LOSS) AFTER

SIGNIFICANT ITEMS 64.8 52.1

OUTLOOK

PaperlinX has continued to deliver solid growth in the last sixmonths, albeit in difficult worldwide economic and businessconditions.

With the initiatives undertaken in restructuring the merchantingbusiness following the acquisitions of Spicers Paper and Coast Paper,and the focus on cost reductions, PaperlinX is well positioned tocapitalise on a turnaround in economic conditions. Further gains inproductivity are also being pursued by PaperlinX's Australian papermanufacturing operations.

Following the divestments made over the last six months, PaperlinX iswell placed strategically to pursue the international expansion ofits merchanting business as appropriate opportunities arise. Theresults for the six months have been impacted by these divestments,with lower debt levels and the consequent lower interest bill, atthis stage only partially compensating for the loss of operatingearnings.

The results for the next six months will continue to be materiallyinfluenced by international economic conditions, especially those inNorth America. PaperlinX is well positioned to benefit from anygrowth in the consumption of paper. The company has strong positionsin its respective markets and is focussed on the extraction ofsynergy benefits from recent acquisitions and the achievement ofoperational cost reductions. In addition, PaperlinX has the financialcapacity to take advantage of acquisition opportunities which areconsistent with its overall strategic direction.

For further information, please contact:

Mr Ian Wightwick Mr Darryl AbotomeyMANAGING DIRECTOR CHIEF FINANCIAL OFFICERPaperlinX Limited PaperlinX LimitedPh: (03) 8540 2222 Ph: (03) 8540 2305

Mr David ShirerEXECUTIVE GENERAL MANAGERCorporate & Investor RelationsPaperlinX LimitedPh: (03) 8540 2302Ph: (0407) 512 521

ends - AAP

KEYWORD: LIVESTOCK