Niklasdorf November 2005

Over the last years B&B have proved to be a reliable partner to the label market as a supplier of one side coated paper. We have provided the necessary quality and services as well as creativity and innovation to ensure our customers can meet the increased demands of the market.

At the same time prices of one side coated label and flexpack papers have continued to be under pressure for the last five years and we have now reached a point where we cannot maintain these levels.

Because of this outstanding pressure on prices we invested a great amount of energy and time to reduce our costs as well as to optimize transport and services.

We continue to carry out extensive cost cutting exercises over the whole supply chain and this has enabled us to compensate to some extend these higher costs.

However, we have now reached a point point where there are no more savings possible – yet our costs continue to rise. We must therefore come to our customers for a price increase.

B&B will increase prices in the average for 8 % (70-80€) for all despatches from the 1st January 2006. .

We are aware that a price increase is not “highly welcome”, especially in the existing competitive environment of the label industry – it is however vitally necessary.

We ask our customers to understand this action and will ensure you for the future the high level of quality and service B&B is known for.