Envi's pulp is part sourced from sustainably managed and chain of custody certified forests. These frameworks allow the inclusion of pulp sourced from ecologically important native forests such as the Central Highlands, Strezelecki Rainforest Reserve and Baw Baw national Park.

Australian Paper's mill in New South Wales sources pulp for its ENVI Carbon Neutral paper range from Australian and overseas suppliers who must provide evidence that the source s are managed for long term viability and at no time is any fibre sourced from old growth forests. Compliance is assured through sustainable forestry management schemes including FSC, PEFC and AFS. FSC is included in the Seven Sins of Greenwashing as an example of a "credible eco-label" (Exhibit 4). PEFC and AFS follow similar verification criteria to FSC.

How do you respond to claims that ENVI is guilty of 3 of the 7 sins of Greenwash as defined by TerraChoice of:

1. The hidden Trade off

ENVI Carbon Neutral paper is considered as one of Australia's best enviro products, having recently received an Australian Business Award 2009 for best Eco-Friendly Product. ENVI Carbon Neutral papers have the following environmental attributes:

1. Certified Carbon Neutral by the Australian Government

2. Forest Chain of Custody Certification (FSC and PEFC)

3. Manufactured ECF (Elemental Chlorine Free) and TCF (Totally Chlorine Free)

4. Contains Australian recycled fibre which diverts waste from Australian land fill.

In addition to these environmental attributes, Australian Made ENVI Carbon Neutral paper supports local jobs in regional areas.

4. Worshipping False Labels (entrust)

Entrust is a program we offer to corporate and other end users and is not a product label. Also, please refer to the above response for ENVI Carbon Neutral paper's environmental; credentials, in particular its Carbon neutral and forest certification claims which have been independently verified and audited.

6. Sin of the lesser of two evils

To become carbon neutral under the Australian Government's GHF scheme Australian Paper had to demonstrate an ongoing commitment to reduce its carbon footprint. In the case of our New South Wales mill this was achieved by replacing coal fired boilers with gas fired boilers. The result was an annual saving in harmful greenhouse gases of 36,000 tonnes which is equivalent to taking 8,600 cars off the road annually.

In addition, the mill operates within EPA license levels. For more information, please refer to Environs, which will be forwarded to you under separate cover.

Please also Glen, I have attached a copy of our recent environmental achievements, further highlighting our commitment to Sustainability.

Kind Regards,

Stephen Hawkins

Australian Paper