PROPOSED ACQUISITION OF SCA PACKAGING

DS Smith Plc (“DS Smith” or “the Company”) today announces the proposed acquisition of the packaging division of Svenska Cellulosa Aktiebolaget SCA (publ) excluding the kraftliner assets (“SCA Packaging” or “the SCA Packaging Group”) for a net consideration of approximately €1.6 billion (c. £1.3 billion¹) (“the Acquisition”). The gross price will be €1.7 billion on a cash, debt and, to the extent legally possible and commercially practicable, pension free basis and approximately €1.6 billion on a net basis after taking into account a pension price adjustment. DS Smith proposes to finance the Acquisition with existing and additional debt and new equity.

^₁ | 1 Based on an exchange rate of €1.00 to £0.8263 on 16 January 2012.