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REPAP PROJECTS CASH POSITIVE IN Q2

 MONTREAL, June 18 /PRNewswire/ -- George S. Petty, chairman and chief executive officer of Repap Enterprises (NASDAQ-NMS: RPAPF) today announced that the corporation achieved positive cash flow in May 1993. "For the first time since the first quarter of 1991, Repap is again in a positive cash position after interest. We have turned the corner a full three months earlier than expected," stated Mr. Petty. "The outlook for Repap and our shareholders is very encouraging," he added.
 In an address to the annual general meeting, Repap's chairman pointed to improved productivity, robust lumber markets and rebounding coated paper prices as the main factors impacting company performance.
 A key factor in Repap's improved performance has been the dramatic productivity gains at its major locations. "Repap's New Brunswick coated paper mill has been setting production records on its world-class machines and is rapidly approaching production targets," stated Mr. Petty. Coated paper shipments for the first half of the year are expected to be up 15 percent over last year. Productivity in New Brunswick is up 11 percent in the first half of 1993. The mill is consistently producing over 1,100 tons per day. Significant cost efficiencies have been achieved.
 Repap Wisconsin's machines have reached full performance maturity. The mill has become one of the most productive and cost effective non- integrated operations in North America. "The technology at our Wisconsin operation provides us with the flexibility to offer a depth of product mix, including recycled grades," stated Mr. Petty.
 "Demand for coated paper has been strong during the first half of 1993 and price realizations continue to improve," said Mr. Petty. "With no new capacity scheduled and with modest economic growth, operating rates will reach practical maximum capacity for the coated paper industry this year," he added.
 Repap's solid wood business has had a major impact on the improved financial performance of the corporation. In 1992, revenues from Repap's lumber operations represented 9 percent of the company's total revenues. In the first quarter of 1993, lumber revenues represented 14 percent of total revenues. Shipments were up 45 percent from the first quarter of 1992. "The strategic acquisition of the Carnaby sawmill in 1992 secured our fiber supply and increased our capacity by 50 percent," continued Mr. Petty.
 "With cost efficiencies and productivity improvements in place and markets tightening-up, I am confident in what the future holds for Repap and its shareholders," Mr. Petty concluded.
 -0- 6/18/93
 /CONTACT: Daniel D. Veniez, vice-president, corporate affairs of Repap Enterprises, 514-846-1316/
 (RPAPF)


CO: Repap Enterprises ST: Quebec IN: PAP SU:

PS -- NY018 -- 3513 06/18/93 11:01 EDT
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Publication:PR Newswire
Date:Jun 18, 1993
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