Almaty, Kazakhstan - May 7, 2008 - Kazakhstan Kagazy PLC (the "Company" or "Kagazy") (LSE: KAG), owner of one of Kazakhstan's leading industrial groups, today announced that the market value of land and facilities of Astana Contract JSC amounted to US$ 175 million as at April 11, 2008, according to an independent appraisal performed by CBRE Scot Holland.

Adjusting this figure for net debt and accounting for certain other adjustments, the net asset value of Astana Contract at the date of the acquisition is estimated at US$ 88 million. The effective purchase cost to Kagazy equates to a pre-money valuation of US$ 42 million at that same date.

Yuriy Bogday, Chief Executive Officer of Kazakhstan Kagazy PLC, commented: "The independent valuation of Astana Contract confirms the attractiveness of this transaction. We see significant opportunities in combining our real estate assets with the largest industrial and warehouse operator in Central Asia."

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Kazakhstan Kagazy PLC runs Central Asia's largest producer of paper, corrugated board and packaging products. It also operates one of the leading industrial real estate development companies in the country through Prime Estate Activities Kazakhstan LLP (Peak), which owns approximately 545 hectares of prime land, strategically located in a newly created industrial zone near Almaty, for construction of commercial warehousing and logistics infrastructure facilities. The Group reported total assets of approximately US$ 647.5 million as at September 30, 2007 and consolidated revenues of approximately US$ 58.9 million for the first nine months ended September 30, 2007, according to unaudited IFRS financial results. Kazakhstan Kagazy's securities are listed under the symbol "KAG" on the London Stock Exchange.

This interim statement contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of Kazakhstan Kagazy plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this interim statement should be construed as a profit forecast.