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REPAP ENTERPRISES REPORTS STRONG OPERATING PERFORMANCE COUNTERS WEAKNESS IN PULP MARKETS

 MONTREAL, Nov. 3 /PRNewswire/ -- Repap Enterprises Inc. today announced third quarter and year-to-date results for the nine months ending September 30, 1993. In commenting on the results, George S. Petty, Repap's Chairman, stated, "Our strategy of focusing on value-added coated paper while reducing our reliance on market pulp is starting to produce results. We are witnessing a significant improvement in Repap's operating performance and can now see the vital contribution that our paper and lumber business is making to the steady progress we are experiencing," Mr. Petty added.
 YTD 1993 versus 1992
 Revenues increased $133.3 million, to $977.6 million in the nine months ending September 30, 1993 compared to the same period in 1992.
 Operating margin before depreciation amounted to $94.6 million, compared to $10.6 million in the 1992 period, an increase of $84 million. Paper and lumber operating margins increased by $112.4 million, offset in part by a $28.3 million drop in market pulp.
 Cash loss after interest was reduced to $15.5 million, compared to a cash loss of $96.2 million in 1992. Pre-tax loss for the nine-month period amounted to $102.9 million after depreciation of $87.4 million, an improvement of $68 million from 1992. However, the reported net loss increased to $122.4 million, because of the non-accrual of income taxes recoverable in 1993.
 Q3-1993 versus Q3-1992
 In the third quarter, revenues increased 7 percent to $309 million. Operating margin before depreciation was $32.9 million compared to $7.7 million in Q3-92. Both coated paper and lumber showed important gains which were partially offset by significant losses in market pulp.
 Cash loss after interest was $3.6 million in Q3-93 compared to $26.6 million cash loss in Q3-92.
 Pre-tax loss was $32.2 million, an improvement of 37 percent from the same quarter in 1992. Reported net loss for the Q3-93 amounted to $41.4 million (0.49 cents per share), an increase of 20 percent over Q3-92 due to the non-accrual of income taxes recoverable.
 Operating Outlook
 "The people of Repap have been relentless in their pursuit of cost and production efficiencies," commented Mr. Petty. "The resulting higher productivity and lower cost structure has enhanced the competitiveness of our operations," he continued. Repap's coated paper operations have continued to improve their cost competitiveness through a significant reduction in Repap New Brunswick's and Repap Wisconsin's operating cost profile over the course of the first nine months of 1993.
 Purchases of coated groundwood paper slowed in the third quarter versus the second quarter as printers and publishers worked through inventories built during the second quarter anticipating price increases. The growth in North American 1993 year-to-date purchases of coated paper continues to exceed economic growth rates.
 Coated freesheet demand for catalogues, inserts and direct-mail was strong, as Repap's freesheet business enjoyed a record quarter. Market acceptance of our line of high quality, recycled, acid-free coated paper products has been exceptional.
 A mid-year weakening of North American lumber prices began to recover during the third quarter, leading to a strengthening in the market in September.
 A record was set by Repap Manitoba in the third quarter for kraft paper production, continuing this segment's positive contribution to the Corporation.
 Repap's subsidiary, Skeena Cellulose Inc., was one of several major pulp mills to take extended inventory downtime to reduce pulp inventories in the third quarter. Skeena's "B" Mill will remain shutdown for approximately three months following the statutory December holiday. Recently, a number of the world's major pulp producers announced a U.S. $40-$60 per ton list price increase to take effect in January 1994.
 Repap's strategic manufacturing and resource advantages are concentrated in the company's annual manufacturing capacity of 940,000 tons of high value-added coated paper, 650,000 metric tons of northern softwood bleached kraft pulp, 160,000 tons of superior strength kraft paper, 500 million board feet of high value-added lumber as well as its scientific and production intellectual properties, including the environmentally-friendly ALCELL solvent pulping technology. Repap has tenured woodlands licensing agreements covering in excess of 7.4 million hectares under management in Canada.
 REPAP ENTERPRISES INC.
 1993 Third Quarter Report
 ($CDN Millions)
 Nine Months Ended
 1992 1993 Change
 Revenues 844.3 977.6 +133.3
 Operating Margin before
 Depreciation 10.6 94.6 84.0
 Interest Expense 110.8 117.9 +7.1
 Other Income 4.0 7.8 +3.8
 Cash Loss after Interest (96.2) (15.5) -80.7
 Depreciation 74.7 87.4 +12.7
 Pre-Tax Loss (170.9) (102.9) -68.0
 Net Loss (A) (114.9) (122.4) +7.5
 Per Share (1.58) (1.45) -0.13
 Cash Flow (Use) from
 Operations (99.1) (18.3)(B) -80.8
 Three Months Ended
 1992 1993 Change
 Revenues 289.6 309.0 +19.4
 Operating Margin before
 Depreciation 7.7 32.9 +25.2
 Interest Expense 37.4 41.7 +4.3
 Other Income 3.1 5.2 +2.1
 Cash Loss after Interest (26.6) (3.6) -23.0
 Depreciation 24.3 28.6 +4.3
 Pre-Tax Loss (50.9) (32.2) -18.7
 Net Loss (A) (34.5) (41.4) +6.9
 Per Share (0.41) (0.49) +0.08
 Cash Flow (Use) from
 Operations (27.9) (5.7)(B) -22.2
 (A) Increase caused by the non-accrual of income taxes recoverable.
 (B) Includes one time charge of $1.3 million for tax payable on conversion of W-7 Paper Partnership.
 -0- 11/3/93
 /CONTACT: Daniel D. Veniez, vice-president, corporate affairs, 514-846-6225, or David Karp, finance and investor relations, 514-846-6229/
 (RPP.)


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

PS -- NY053 -- 0122 11/03/93 11:49 EST
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