79CK Qnb Fin 24

RNS Number:1311L
Sappi Ld
24 May 2000



Sappi sells Novobord

Global paper group Sappi has sold Sappi Novobord, to Sonae South Africa (Pty)
Ltd for an undisclosed amount.  Sappi Novobord is a particle and medium density
fibre-board (MDF) manufacturer with factories in Whiteriver and George in  South
Africa.  Sonae South Africa is a wholly owned subsidiary of Sonae Industria
SPGS, the world's largest manufacturer of wood-based panels.

Sonae South Africa has been importing particle and MDF board into South Africa
since the early nineties and is currently commissioning a new plant in Piet
Retief.  Sonae Executive Chairman, Sergio Gonzales Andion said:  "Since
establishing ourselves in South Africa in the mid nineties we have been  exposed
to the enormous potential of this country.  We are a global group and this
latest acquisition demonstrates our confidence that it is possible to   conduct
international business here.  We are excited about the calibre of people which
we are taking over from Sappi and are confident that with their support this
will remain a profitable business that will grow from strength to strength".

According to John Job, Chairman of Sappi Forest Products, the Novobord  business
no longer fitted Sappi's strategy, which focuses on pulp and paper.  He
confirmed that the sale was part of Sappi's programme to dispose of  non-core
assets.  Including  this  sale, Sappi has sold US$326 million of assets  since
setting itself a target of R2 billion in May 1998.  He said:  "Novobord  is a
very successful wood-based panels enterprise but no longer fits with  our 
business.  This change of ownership holds exciting growth prospects for
Novobord's people as this business will be part of their new owners' core
business".  Job paid tribute to the Novobord employees who have been part of the
Sappi group since 1982.

The transaction will result in a substantial one-time gain for Sappi but will
not have any material impact on Sappi's ongoing earnings.  The proceeds will  be
used to reduce debt.

The sale is subject to approval by the South African Reserve Bank and
Competition Commission and will be closed as soon as is practical thereafter.

About Sappi:  Sappi is a leading producer of coated fine paper (which is used 
in high quality publications such as annual reports, catalogues, brochures and
magazines) and has a 15% share of the world market.  It is the largest  producer
in North America, Europe and Africa, producing one in every four sheets of
coated fine paper in the western world.

The company is also the leading producer of dissolving pulp in the word (used
typically in the manufacture of viscose textiles) with a market share of 15%.

About SONAE SPGS: Sonae, founded in 1959, has its origins in the forest
products business and has successfully grown into Portugal's largest private
conglomerate, with 1999 sales over US$5 billion.  Market-leading businesses
account for more than 90% of Sonae's estimated NAV.  Sonae's listed businesses
are in retailing (the largest in Portugal and third largest in Brazil), shopping
centre development and wood-based panels.  Its key unlisted business  is in
telecommunications, shortly to be listed as Sonae.com.


Released on behalf of Sappi by Westcom. For further information :

Robert Hope                                   Vitor Neves
Director Strategic Development                Financial Director
Sappi Limited                                 Sonae - Tafibra South Africa
Tel: +27 (0) 11 407 8492                      Tel: +27 (0)11 788 1874
Fax: +27 (0) 11 403 1493                      Fax: +27 (0)11 788 1876


FORWARD LOOKING STATEMENTS


Certain statements in this report that are neither reported financial results
nor other historical information, are forward-looking statements, including, but
not limited to statements that are predictions of or indicate future  events,
trends, plans or objectives.  Undue reliance should not be placed on  such
statements because, by their nature, they are subject to known and unknown risks
and uncertainties and can be affected by other factors, that could cause actual
results and company plans and objectives to differ materially from  those
expressed or implied in the forward-looking statements (or from past  results). 
Such risks, uncertainties and factors include, but are not limited to the highly
cyclical nature of the pulp and paper industry (and the factors that contribute 
to such cyclicality, such as levels of demand, production capacity, production
and pricing), adverse changes in the markets for the  group's products,
consequences of substantial leverage, changing regulatory   requirements,
unanticipated production disruptions, economic and political  conditions in
international markets, the impact of investments, acquisitions and dispositions
(including related financing), and currency fluctuations.  The company
undertakes no obligation to publicly update or revise any of these 
forward-looking statements, whether to reflect new information or future events
or circumstances or otherwise.

END

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