Almaty, Kazakhstan - Further to the announcement made on the 13th November 2009, Kazakhstan Kagazy plc announces that Kazakhstan Kagazy JSC ( “JSC” and, together with the Company and its other subsidiaries, the “Group”), the Kazakh holding company of the Group’s operations in Kazakhstan, has today informed the Kazakhstan Stock Exchange Incorporated (“KASE”) that it proposes to restructure all of its bonds currently issued and outstanding with a face value of KZT 15.6 billion (USD 104.0 million equivalent).
In accordance with requirements of Kazakh legislation, a detailed proposal outlining the restructuring plan  for the JSC bonds (“Restructuring Plan”) will be submitted to the KASE by 28 January 2010.  The Restructuring Plan will include proposals for the deferral of principal repayments, the deferral and reduction of interest payments and extensions of maturity. 
Discussions with other lenders to the Group continue and further announcements will be made in due course.
The board of the Company notes that if the restructuring plan for the JSC bonds is not agreed with the bond holders or if the discussions with the Group’s lenders do not result in a satisfactory conclusion, the ongoing prospects of the Group will be uncertain.

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