1. The Global Electronic Standards Initiative February 13, 2003

2. papiNet is … An International Initiative

3. papiNet is … An international initiative –European and North America geographies today –Reaching out to South America and Asia geographies –Reaching out to additional market segments Chartered to develop a set of standard electronic documents for the paper, printing, publishing, and forest products industries enabling an improved Supply Chain –Developed and designed to facilitate the flow of electronic information between parties within the paper supply chain –Support the implementation of the documents with implementation tools and guidelines

4. papiNet’s Goals are … To improve the efficiency of the paper supply chain and to remove cost - By enabling a collaborative business model - By documenting business processes - By consistent implementation of standards so as to improve communication of business information - By defining interoperability guidelines to decrease costs and reduce the time & effort to establish electronic communication between trading partners

5. papiNet’s Evolution Convergence of three related efforts: -IDEAlliance Formerly the Graphics Communications Association with its publication emphasis -The European Paper Consortium for e-business A consortium of European suppliers cooperating with customers within the industry -AF&PA US trade association for manufacturers of forest, paper and wood products.

6. papiNet is a Global Organization AssiDomän Ahlström Burgo ENCE Fedrigoni Holmen Paper International Paper Kappa Korsnäs Lecta Mayr-Melnhof Metsä Serla (M-real) Mondi Myllykoski Norske Skog Portucel/Soporcel Sappi SCA Smurfit Södra Stora Enso UPM-Kymmene/Haindl papiNet Europe Membership:

7. papiNet is a Global Organization Abitibi-Consolidated Bowater America Brown Printing Conde Nast ForestExpress Georgia-Pacific Glatfelter Gruner & Jahr International Paper Lands’ End Madison Paper MeadWestvaco Perry Judd’s Quad Graphics Quebecor World R.R. Donnelley Sappi Fine Paper, NA Smurfit-Stone SP Newsprint Stora Enso NA Time Inc. UPM-Kymmene Weyerhaeuser papiNet North America Membership:

8. The papiNet standards are open, free and easy to adopt; providing common benefits to supply chain participants papiNet standard documents Availability Business Acknowledgment Call-Off Complaint (Claim)* Complaint Response* Credit/Debit Memo Delivery Forecast/Planning* Goods Receipt Information Request Inventory Change Inventory Status Invoice Order Confirmation Order Status Product Attributes Product Performance* Product Quality* Purchase Order Request For Quote Request For Quote Response Usage *Released for industry review January 31, 2003

9. papiNet Documents Matrix

10. A Supply Chain Scenario – Replenishment Model Using the North American business model: The Publisher/Cataloger negotiates the, “deal”, with the Paper Supplier The Publisher/Cataloger informs the Printer/Converter which Paper Supplier(s) they want to use and the quantity negotiated with the supplier(s) The Printer/Converter and the Paper Supplier collaborate to insure timely delivery and an effective supply of paper in place

11. Paper Producer Printer/ Converter Publisher/ Cataloger Paper Producer Publisher Printer European North American Agents Brokers Merchants ASPs Agents Brokers Merchants ASPs Representative Existing Business Models

12. Paper Producer Printer/ Converter Publisher/ Cataloger Planned Work & Print Schedule Estimated Paper Requirements Purchase Order (Blanket) A Supply Chain Scenario – Replenishment Model

13. Paper Producer Printer/ Converter Publisher/ Cataloger Forecast By Grade (Annual/Quarterly) Planned Print Production By Issue/Event Call-Off/PO Release

14. A Supply Chain Scenario – Replenishment Model Paper Producer Printer/ Converter Publisher/ Cataloger Call-Off/Order Confirmation Delivery Goods Receipt Usage