OREANDA-NEWS. The television channels Ren-TV and Peterburg-5 have aired a number of reports negatively describing the business activities of Ilim Group. In this connection, Ilim Group is issuing a formal statement to the effect that these broadcasts were based on misrepresentations falsely stated as facts.

The manner in which the media reports were presented may suggest that they have been arranged to exercise pressure on certain members of Ilim Group Board of Directors. Such methods were quite widely used in Russia in the 1990s when parties resorted to unconscientious use of mass media resources for resolving business-related issues.

The circulation of the above mentioned reports harms the Company’s reputation, and therefore Ilim Group is pursuing legal remedies for defamation.

Ilim Group is the leading company of the Russian forest products industry. The strategic partner of Ilim Group and the owner of 50% of its shares is a U.S.- based company International Paper Co. Ilim Group employs over 17 thousand people.

Ilim Group has recently implemented a \$2 billion investment program to build new modern production facilities. In the city of Bratsk, Irkutsk Oblast, Ilim Group constructed a world’s largest softwood kraft pulp mill. In the city of Koryazhma, Arkhangelsk Oblast, a new papermaking production was launched to manufacture high-quality white papers, including the first in Russia wood-free coated paper production.

Ilim Group implements large-scale social programs in the communities where it operates.

The Company is one of the world’s largest leasers of FSC™ certified forest area.