Printing
Industries CEO
Philip Andersen, said that the ACCC had not yet formed an opinion on the
proposed acquisition. It has asked for industry feedback before it made a final
decision on whether it will or will not approve the take-over.

"If
there is sufficient industry interest then we will prepare a detailed report for
the ACCC addressing the areas they are considering in assessing whether the
purchase will affect competition in an important and substantial market," he
said.

The areas industry feedback is sought are:

1. How
readily customers could switch from the merged firm to other domestic paper
merchants for the supply of fine paper, and the reasons;

2. The extent
to which customers could switch from the merged firm to offshore paper
manufacturers for the supply of fine and copy paper, either directly or
indirectly through mill agents and overseas paper merchants, and the reasons
(having regard to product quality and range, pricing, lag time and any other
practical constraints such as requirement of minimum order quantity);

3.
The ability and incentive of new entrants to set up paper merchanting operations
post acquisition, and the reasons (having regard to factors such as the size of
the investment, particularly the proportion of that which is sunk, and access to
domestic and offshore paper manufacturers);

4. Whether customers would
have the ability and incentive to sponsor the entry of new paper merchants or to
perform paper merchanting functions (such as procurement and warehousing)
in-house, and the reasons;

5. Whether and, if so, how Red Paper is an
especially vigorous and effective competitor (for example in terms of pricing,
range of products stocked and the quality of service provided) and

6. Whether the proposed acquisition would increase the ability and
incentive for reduced price and/or non-price competition between paper merchants
operating in Australia.

Mr
Andersen said written responses should be provided to Printing Industries
National Office, 25 South Parade, Auburn 2144 by Wednesday 24 October 2007. Fax
(02) 8789 7387 or e-mail: hagop@printnet.com.au.

Inquiries
should be directed to Hagop Tchamkertenian on (02) 8789
7361.

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