Mercer International Inc. Divests Last Paper Mill

New York, New York, USA, 16 November 2006 -- /PRNewswire/ -- Mercer International Inc. (NASDAQ:MERC) (NASDAQ:TSX:) (NASDAQ:MRI.U) announced today it has divested its last remaining paper mill, at Fahrbrucke, Germany, to focus exclusively on the manufacture and sale of pulp.

The company currently expects to incur costs of approximately EUR 6.0 million in connection with funding and other commitments related to the divestiture.

"This transaction completes our strategy of exiting the paper business to focus on our core competency of pulp," said Jimmy S.H. Lee, the CEO of the company. "Although the Fahrbrucke mill had attempted to focus on high margin products, the small capacity of its paper machine did not permit it to make a satisfactory contribution. We are pleased to complete this divestment on terms which control and quantify our cash costs, preserves the tax attributes of the prior business, and results in the mill being acquired by new owners who are committed to maintaining the assets, including ongoing employment for workers." Lee concluded, "I would like to wish all the best and success to the Fahrbrucke employees in the future under their new ownership."

Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, visit its Web site at http://www.mercerint.com/.

Source: Mercer International Inc.