DGAP-Adhoc

Cham Paper Group Holding AG: Dynamic revenue performance and clear-cut improvements in results - Seite 2

generating high sales figures. Capacity utilisation at our mill in
Carmignano which manufactures these papers was high during the first half
of 2014.

Industrial Release: Sales of our glassine papers trended slightly upwards.
Our primary market Europe remained stable, and thanks to the advantages
afforded by our superior quality we were able to expand market share.
Unfortunately sales in Asia fell short of our expectations as the price war
there did not allow for any profitable growth.

Digital Imaging: The market for digital sublimation printing of textiles
continues to exhibit above-average growth. Digital sublimation printing is
increasingly coming to supplant classic printing technologies so that the
market potential in this segment is on the rise thanks to the technical
innovations of our customers. Our recently revamped product range is
meeting with considerable interest in the marketplace. Sales in this area
have expanded significantly, particularly in Europe and the USA.

Continued reluctance of the market to accept barrier products
Although further progress has been achieved with the innovative Barnamic
barrier papers - these products are currently undergoing testing by several
potential customers - the restraint already observed last year with regard
to ordering continues unabated. Many customers (still) perceive a
switchover to this brand-new class of food packaging to be too risky. This
realisation has also meant that the business plan for the operations in
Cham has had to undergo a reassessment. At present it is clear that the
volume required for satisfying the fundamental economic prerequisites for
constructing a new coating unit in the area of Cham proposed for 2016 will
not be achieved in the foreseeable future.

Integration in northern Italy instead of constructing a new plant in
Switzerland
Consequently the Board of Directors is currently planning to have the
products to which finishes are currently applied in Cham integrated, along
with their associated technology, in the company's own coating unit of the
Carmignano mill in northern Italy, and to dispense with constructing a new
facility in Switzerland. Integration will be part of an investment
programme which has been initiated to modernise and expand capacity at
Carmignano and is to be completed in 2015. The associated reduction in
staff by approx. 50 at the technology centre in Cham will be deliberated
with social partners in a consultation procedure. Plans have been made to
support employees with a redundancy scheme in a manner similar to the one