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ARACRUZ CELULOSE REPORTS 1992 FIRST-HALF RESULTS IN U.S. GAAP

 ARACRUZ CELULOSE REPORTS 1992 FIRST-HALF RESULTS IN U.S. GAAP
 RIO DE JANEIRO, Aug. 14 /PRNewswire/ -- Aracruz Celulose S.A. (NYSE: ARA) announced today its financial results stated in U.S. GAAP for the first six months of 1992. To account for Brazilian inflation, such information is stated in constant Cruzeiros of June 30, 1992 purchasing power.
 Net operating revenues were Cr$831.9 billion (US$241 million) in the first half of 1992. For all of fiscal year 1991, net operating revenues were Cr$1,103.6 billion (US$321 million).
 Operating income for the first six months of 1992 was Cr$156.6 billion (US$45 million). For fiscal year 1991, the Company reported an operating loss of Cr$66.6 billion (US$19 million).
 For the 1992 first half, the Company reported a net loss of Cr$23.4 billion (US$7 million), or Cr$87.85 per Class B share (US$0.03 or US$0.15 per ADS). For fiscal year 1991, net losses were Cr$496.4 billion (US$145 million), or Cr$1,153.70 per share of Class B stock (US$0.33 or US$1.65 per ADS.) Each ADS represents five Class B shares.
 The Company reported that production volume in the 1992 first half was 506,000 tones, a 48 percent increase above that produced in the first six months of 1991. The increased production results from an expansion of the Company's mill facility, completed in 1991. The additional production capacity was brought on stream in March 1991 and reached full production capacity in November of that year.
 The total volume of pulp sold in the first six months of 1992 was 474,400 tones, a 54.7 percent increase from the same period last year. The Company reported that the average sales price per tone for the first half of 1992 was above the average price per tone in 1991.
 Total consolidated debt at June 31, 1992 was Cr$3,134 billion (US$909 million), an 11.8 percent decrease from the figure reported at Dec. 31, 1991. In June of this year, the Company completed a public offering which included an offering of 51.9 million Class B shares in Brazil, and an offering of 10,000,000 ADSs (representing 50,000,000 Class B shares) in the U.S. and other foreign markets. The net proceeds were used to substantially liquidate the company's most expensive Cruzeiro denominated short-term indebtedness, whose costs reached approximately inflation plus 40 percent per annum for the first half of 1992.
 On June 24, 1992, the Company, through its subsidiary Aracruz Trading S.A. ("Aracruz Trading"), signed agreements with a syndicate of banks led by NMB Postbank Groep, N.V., pursuant to which such subsidiary may draw down loans up to US$150 million. The loans, of which US$50 million had been drawn down as of June 30, 1992, bear interest of LIBOR plus 3 percent, adjusted semi-annually, and are repayable in four semi- annual installments after a grace period of 18 months. The loans are guaranteed by the Company, by accounts receivable and by certain notes issued by the Company and sold to Aracruz Trading.
 In July 1992, the Company reached an agreement with the Government of the state of Espirito Santo, with respect to that state's imposition of a value-added tax (ICMS) on the Company's export revenues. Prior value-added taxes owed by the Company on past export revenues had been paid into escrow. Pursuant to the settlement, the amounts accrued in such escrow through May 19, 1992, were paid to the state with the Company receiving credits representing 40 percent of that amount to be applied against future ICMS on domestic sales. In July 1992, the Company will record in income Cr$44 billion relating to such settlement. Although the settlement provided that future assessments of the ICMS would be reduced from 9.1 percent to 4.55 percent, the settlement also provided that the Company retains the right to continue its litigation opposing the application of the ICMS on its future export revenues. The Company intends to vigorously pursue such litigation.
 Aracruz Celulose S.A., headquartered in Rio de Janeiro with its production operations in the coastal state of Espirito Santo, is the world's largest producer of bleached eucalyptus kraft market pulp. Eucalyptus pulp is a high-quality hardwood pulp used by paper manufacturers to produce a wide range of products, including premium tissue, printing and writing papers, liquid packaging board and specialty and photographic papers. Aracruz is the first Brazilian company to list on the New York Stock Exchange.
 NOTES:
 US$ translations were converted using the exchange rate reported for June 30, 1992, Cr$3,446.70 equals US$1.00.
 Prior to the 1992 first half period, financial results determined according to U.S. GAAP are available only for the full year-end periods from 1987. As a result, results for year-end 1991 are presented here.
 The Company has, simultaneously with this announcement, publicly released in Brazil its first half financial results, stated in Brazilian GAAP. Under those accounting principles, Aracruz reported a 1992 first half profit of Cr$10.2 billion, or Cr$19.01 per share.
 ARACRUZ CELULOSE
 Condensed Consolidated Statement Of Operations (A)
 (Prepared in Accordance With U.S. GAAP)
 (Cr$ and US$ million Unaudited)
 Year ended Six Months
 Ended
 Periods ended 12/31/91 (B) 6/30/92
 CR$ US$ CR$ US$
 OPERATING REVENUES:
 Sales of eucalyptus
 pulp:
 Domestic 219,891 64 133,725 39
 Export 1,022,995 297 811,375 235
 Total 1,242,886 361 945,100 274
 VAT and other sales
 deductions 139,293 40 113,175 33
 Net operating
 revenue 1,103,593 321 831,925 241
 OPERATING COSTS/EXPENSES:
 Cost of sales 895,434 260 512,163 149
 Selling costs 67,683 20 47,787 14
 Administrative costs 201,395 58 97,086 28
 Other 5,725 2 18,298 5
 Total 1,170,237 340 675,334 196
 OPERATING INCOME (LOSS) (66,644) (19) 156,591 45
 OTHER INCOME (EXPENSES):
 Financial income 25,666 7 48,334 14
 Financing expense (4,189,705) (1,216) (2,970,706) (862)
 Foreign exchange
 (loss), net (1,559,023) (452) (1,601,061) (465)
 Purchasing-power
 gain, net 5,287,735 1,534 4,344,810 1,261
 Other 5,564 1 (1,375)
 Total (429,763) (126) (179,998) (52)
 NET (LOSS) (496,407) (145) (23,407) (7)
 (Loss) Earnings
 Attributable per share:
 Class A stock (1,040.33) (0.30) 165.56 0.5
 Class B stock (1,153.70) (0.33) (87.85) (0.03)
 Common stock (1,153.70) (0.33) (87.85) (0.03)
 ADS (5,768.50) (1.65) (439.25) (0.15)
 Weighted Average Number
 of Shares Outstanding:
 Class A stock 66,536,000 65,855,000
 Class B stock 142,820,000 163,095,000
 Common stock 227,454,000 227,454,000
 (A) Adjusted for price-level changes and expressed in millions of constant Brazilian Cruzeiros of June 30, 1992 purchasing power and millions of United States dollars except per-share amounts.
 (B) Cruzeiro information varies from corresponding information in the Company's Registration Statement on Form F-1, declared effective May 27, 1992, due to restatement in constant Cruzeiros of June 30, 1992 purchasing power. U.S. dollar information varies from corresponding information in the Registration Statement because Brazilian inflation and the Cruzeiro to U.S. dollar exchange rate variation during the six months ended June 30, 1992 were not equivalent.
 -0- 8/14/92
 /CONTACT: Mauro Molchansky, chief financial officer of Aracruz Celulose, 011-55-21-541-8194, or Steven Kennedy of Dewe Rogerson Inc., 212-688-6840, for Aracruz Celulose/
 (ARA) CO: Aracruz Celulose S.A. ST: IN: PAP SU: ERN


LR -- NY013 -- 9906 08/14/92 09:29 EDT
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