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MEDIA RELEASE 03 December

Papyrus makes inroads in Egypt
Papyrus Australia, the developer of a world-first technology that converts the waste trunk of the banana palm into alternatives to forest wood products, has entered into a memorandum of understanding ('MOU') with Egyptian investment company Tawazon For Solid Management SAE.

The MOU is a step forward in assisting Papyrus in reaching its commercialisation strategy to license its technology to suitable entities that will establish banana veneer and banana fibre production factories in locations where banana is grown.

Part of private equity firm Citadel Capital, Tawazon is an investment company in the regional solid waste management industry. The company is composed of the Egyptian Company for Solid Waste Recycling (ECARU) and the Engineering Tasks Group (ENTAG), both leading waste management enterprises with extensive operations in Egypt as well as international exposure to Malaysia, Sudan, Libya and Syria.

Ted Byrt, chairman of Papyrus Australia, said the MOU represents a tangible step towards establishing a factory in a prolific banana growing province with the prospect of selling product into Europe.

"Significant work still needs to be done before any operations in Egypt become a reality, but the memorandum of understanding is an important step in the process," Byrt explained.

The MOU covers the establishment of entities - herein generically called Papyrus Egypt and Papyrus Europe - as well as:

  • The establishment of contracts to secure banana plantation feedstock for the proposed factory and supply of that feedstock to the factory
  • The establishment of contracts for supply by Papyrus of plant and equipment for the proposed factory
  • The establishment of sale and purchase agreements for product from the proposed factory to be sold into Europe
  • The corporate structure and ownership of the factory, Papyrus Egypt and Papyrus Europe.

Tawazon has previously signed a non-disclosure agreement with Papyrus and has been conducting due diligence on Papyrus and its technology.

About Papyrus

Papyrus Australia Limited (PPY), which began trading on the ASX in 2005, was founded in 1995 in response to an increasingly stringent environmental and regulatory situation facing the paper industry.

The trunk of the banana palm was identified as an ideal source of fibre because it is a renewable and abundant source that is available all year round and has no other viable use.

The Papyrus technology does not contribute to the destruction of natural or purpose-planted forests and does not consume any chemicals or water during manufacture. The process is also much more environmentally-friendly and has significantly lower production costs when compared to comparable products.

The Papyrus technology can produce alternatives to forest wood products such as paper and paperboard, wood based panels, veneer and other fibre products. The products are water-repellent, fire-retardant, are stronger and lighter than most conventional fibre materials and have a distinctive look and feel.

More information on Papyrus is available at www.papyrusaustralia.com.au.

Released for Papyrus Australia by Dennis Rutzou Public Relations (www.drpr.com.au)
For further information please call Kim Larochelle or Gill Asbury on (02) 9413 4244.

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