Profile: NIYAR HADERA BE`AM (AIP)

Hadera Paper Ltd., incorporated in 1951, is a manufacturer of paper and paper products. The Company is engaged through its subsidiaries in the manufacture and sale of packaging paper, corrugated board containers and packaging for consumer goods, in the collection and recycling of paper and plastic waste and in the marketing of office supplies, mainly to the institutional and business sector. The Company also holds interests in associated companies that deal in the manufacture and marketing of printing and writing paper, household paper products, hygiene products, disposable diapers and kitchen products. In order to serve its paper production activities, the Company, through a wholly-owned subsidiary, supplies various services, including engineering services, maintenance, steam and energy, water supply, and sewage treatment, to a variety of paper machines located at the Company’s main production site in Hadera. On July 10, 2008, the Company has signed an agreement for the acquisition of shares of Carmel Container Systems Ltd.

The Company’s principal products include Grades of Paper and Board, Packaging products, Household products, Industrial, Hospital and Food Service products and other products. Packaging products includes folding cartons, corrugated containers, consumer packages solid board containers and pallets. Household products include bathroom tissue, toilet paper, kitchen towels, facial tissue, napkins, disposable tablecloths, sanitary towels, panty shields, tampons, disposable baby diapers, training pants, baby wipes, disposable adult diapers and incontinence pads. Industrial, Hospital and Food Service products include toilet paper, towel rolls, C-fold towels, napkins, place mats, coasters, bed sheets, wadding, paper, toilet seat covers, disposable bed-pans and urinals, sterilizing paper, bathroom tissue and paper towel dispensers, dispensers for liquid hand soaps and room deodorizing dispensers for washrooms and cleaners, detergents and cleaning complementary products, cups and plates and examination gloves. Other products include aluminium food wraps, cling-film wraps, garbage bags, oven baking and cooking trays, office supplies, recycled ground and palletized plastics used by the plastic products industry. The Company’s packaging products are sold mostly to five main customers in Israel (one of them is an associated company), which operate in the corrugated board sector. Its paper grade products are sold to publishers, big and medium size printers, converters, and wholesalers.

The Company competes with Proctor & Gamble Co., Office Depot, Kravitz, Varel, Emin Leidlier, Saica, Hamburger, SCA, Otor, Nine Dragons., KMM Recycling Plants Ltd and Tal-El Collection and Recycling Ltd.