Andritz Receives Order from Aracruz for Fiberline C Expansion Project

Graz, Austria, 26 June 2006 -- International Technology Group Andritz received an order from Aracruz Celulose S.A., Brazil, for its expansion project 2330. The project will substantially increase the capacity of the mill's Fiberline C, from the original design capacity of 700,000 tons/year to 950,000 tons/year. The order value for Andritz is approximately USD 80 million.

The capacity of Aracruz' Fiberline C, which was delivered by Andritz in 2002, has been continuously increased substantially above the original design capacity over the last few years. The aim of the new expansion is to achieve higher production rates and to further enhance and optimize pulp quality.

The order focuses on upgrading and modernizing the washing, screening, and bleaching equipment of Fiberline C. It includes delivery of three new DD washers, new reactors, and equipment for medium-consistency pulp. The pulp drying line will also be upgraded to achieve the new capacity rates.

A new chipping line, consisting of an Andritz HHQ-ChipperTM and a new Andritz bleaching stage for bleach plant B at the Aracruz mill, was also ordered. The Andritz bleaching equipment fulfills the highest environmental standards, thus reducing chemicals consumption to a minimum. This protects the environment and leads to essential cost savings for the customers.

Delivery is scheduled to take place in the second half of 2007