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IMPROVED SALES AND PRODUCTIVITY TURN REPAP CASH POSITIVE

 MONTREAL, July 19 /PRNewswire/ -- Repap Enterprises Inc. (NASDAQ-NMS: RPAPF) today announced that the corporation turned cash positive after interest in the second quarter of 1993. In releasing the results from operations for the quarter ending June 30, 1993, Repap's management pointed to increased sales of coated paper, significant productivity improvements and a significant contribution from lumber operations as the major reasons for the positive performance trends.
 Revenues totaled $360.1 million, up 25 percent from the second quarter 1992. Repap's cash from operations after interest was $7.7 million, compared to a cash loss of $28.1 million for the same period last year. The corporation's operating margin reached $42.6 million for the quarter, continuing the positive upward trend and reflecting a $38.3 million increase over the second quarter of 1992 and a $23.5 million increase over the first quarter of 1993. Repap recorded a pre-tax book loss of $21.4 million compared to the $53.0 million loss reported for the same period of 1992.
 Revenues for the first half of 1993 totaled $668.6 million, up 18 percent from revenues of $565.6 million reported for the same period last year. Increased revenues and lower costs resulted in a reduction of cash losses after interest for the first half of 1993 of $11.9 million. This compares to a cash loss of $69.6 million for the first half of 1992.
 Repap's shipments of coated paper totaled 213,200 short tons during the second quarter, up 19 percent from second quarter 1992 shipments. Coated paper operating margins have experienced further improvement from the first quarter as a result of increased productivity, particularly at Repap New Brunswick, where a positive cash flow after interest was reported for the month of June. Performance at Repap's New Brunswick facility continues to strengthen and is currently meeting management and financial objectives for 1993.
 The benefit of the capital investments made to build Repap into a world-class, high technology forest products company has been steadily increasing as machines reach operational performance targets. Productivity at all Repap locations is at record levels.
 Commenting on the second quarter results, George S. Petty, Repap's chairman and chief executive officer, stated "Repap people made significant progress in enhancing our competitiveness through cost efficiencies and productivity gains during the past year." Mr. Petty concluded, "We expect these positive trends to continue."
 REPAP ENTERPRISES INC.
 Highlights
 (In Millions of Canadian dollars)
 Second Quarter 1992 1993 Incr./(Decr.)
 Revenues $ 288.2 $ 360.1 $ 71.9
 Operating margin 4.3 42.6 38.3
 Interest expense
 & other 32.4 34.9 2.5
 Cash profit/(loss)
 from operations (28.1) 7.7 35.8
 Depreciation 24.9 29.1 4.2
 Pretax profit/(loss) (53.0) (21.4) 31.6
 Net loss (A) ($35.8) ($26.8) $9.0
 Loss per Share ($0.44) ($0.32) $0.12
 Six months ended 1992 1993 Incr./(Decr.)
 Revenues $ 565.6 $ 668.6 $ 103.0
 Operating margin 2.9 61.7 58.8
 Interest expense
 & other 72.5 73.6 1.1
 Cash profit/(loss)
 from operations (69.6) (11.9) 57.7
 Depreciation 50.4 58.8 8.4
 Pretax profit/(loss) (120.0) (70.7) 49.3
 Net loss(A) ($80.4) ($81.0) ($0.6)
 Earnings per share ($1.20) ($0.96) $0.24
 (A) -- Deferred tax benefits from operating losses have not been recorded in the accounts in 1993.
 -0- 7/19/93
 /CONTACT: Daniel D. Veniez vice-president-corporate affairs of Repap Enterprises, 514-846-1316/
 (RPAPF)


CO: Repap Enterprises Inc. ST: Quebec IN: PAP SU: ERN

TS -- NY081 -- 3200 07/19/93 15:47 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
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