HPD Chosen to Enhance Recovery Area for Australian Paper, Maryvale Mill

For Immediate Release

Plainfield, Illin., Jan 6, 2006 - HPD, a Veolia Water Solutions & Technologies company, has been selected by Australian Paper to upgrade and expand capacity at its Maryvale Mill of its current evaporator train in the recovery area for kraft pulping operations. The Maryvale Mill is located in the state of Victoria in Australia, 160km east of Melbourne.

HPD will provide a complete design and engineering solution to modify, upgrade and expand the current evaporator systems to evaporate 495 T/hr for concentration of black liquor to 74% total solids. A key component of the upgrade will be the installation of two Enhanced Forced Circulation concentration units to allow for non-fouling high solids liquor production. HPD's scope of work for the project includes detailed engineering, design and supply of major equipment, all piping, structural steel and specification of ancillary equipment. In addition to the new concentrators, a new sixth effect, surface condenser and liquor pre-heater will be supplied by HPD and integrated with the existing evaporation system.

The Maryvale Mill expansion will be a two-year project with the upgraded evaporator train scheduled to startup in the Summer of 2007.

As the largest pulp and paper mill in Australia, this effort is part of an overall expansion to create self-sufficiency in terms of its pulp requirements, enhance environmental performance and significantly improve efficiency at the Maryvale site. Australian Paper is the manufacturing arm of PaperlinX, a leading producer of fine communication papers and high performance packaging papers with customers in 40 countries worldwide.

This is the second project for HPD at Australian Paper since 2000.