Carbon Conservation and App Introduce the World's First Pulpwood Plantation to Carbon Reserve Redd-Plus Initiative

JAKARTA, Indonesia, October 4, 2010 - Indonesia will become the home of the world's first privately funded
project turning pulpwood plantation concessions into a carbon reserve. The
Kampar Carbon Reserve, located in Riau Province in Sumatra, is being
established on land previously approved for pulpwood plantation in a unique
public-private partnership announced in Jakarta today.

Creation of the Kampar Carbon Reserve is being led by the green
entrepreneur firm Carbon Conservation in partnership with Asia Pulp & Paper
(APP). The pair worked with the Indonesian Ministry of Forestry, land
concession holder PT. Putra Riau Perkasa (PRP), and local stakeholders to
re-allocate more than 15,000 hectares of deep peat carbon sink from
concessions allocated for pulpwood plantation to conservation land in an
effort to open the door to this world-first pilot project.

Kampar Carbon Reserve has been subjected to multiple assessments which
convinced APP that this is a unique area in the Semenanjung Kampar peat dome
that needs to be conserved. Currently for at least the next 30 years the
bio-diverse rich peat dome of Kampar Carbon Reserve is expected to preserve
significant amounts of carbon. Carbon stock assessments conducted in the
coming months will confirm the amount.

The project is designed to use the sale of REDD-Plus credits to inject
millions of dollars into local job creation and community development
programs in the indigenous communities surrounding the land over the lifespan
of the preservation program. The community development programs will help
reduce the pressures exerted on the forest from the local communities, while
still allowing local residents to improve their livelihoods and to prosper.

"Working with APP we are giving new life to a carbon-rich piece of land
that is roughly a quarter the size of Singapore that we are now conserving as
a protected carbon plantation," said Dorjee Sun, CEO of Carbon Conservation,
co-headquartered in Australia and Singapore. "This is the first real attempt
by a pulpwood producer to measure the difference in carbon conservation of
what would have happened in its existing state, what would happen in a
pulpwood plantation scenario and what will happen after preservation."

"The Kampar Carbon Reserve is a gift from Indonesia to the world. We are
working with the Ministry of Forestry, PRP and other concerned stakeholders
to create a pilot program that helps tackle the global climate change
challenge. At the same time we are creating real community investment
programs directed at the true root of Indonesia's environmental issues:
poverty in the indigenous communities surrounding the rainforests," said Aida
Greenbury, sustainability managing director for APP.

Carbon Conservation will lead the effort to independently measure the CO2
footprint and build a conservation model that will determine the true annual
output of the new reserve. The group will also lead the effort to bring in
independent investors to purchase and market REDD-Plus credits that will
generate the revenue to support the program.

APP and PRP will lead the forestry and community development aspect of
the program, working with government authorities to help protect the land
from anything that could hamper the carbon preserved and establish programs
in the surrounding Riau province to create jobs and community investment
programs to help protect the area.

Independent auditors will conduct annual reviews to validate preservation
activities and ensure accuracy of carbon preservation measurements.

"Innovation in environmental development has to be closely connected to
economic development to make a real impact. The current plan is to protect
this land for at least the next 30 years, but just as important is that it
will be a highly productive contributor to local community development and
reduction in greenhouse gas emissions," said Sun.

"APP's goal is to protect large landscape forests that have high
conservation value and critical peat land. We put all land through rigorous
scientific assessments to help us determine the most appropriate use. We used
this same approach as we developed our partnerships supporting the Biosphere
Reserve in the Giam Siak Kecil, Senepis Sumatran Tiger Sanctuary in Riau
Province, Taman Raja Nature Reserve in Jambi Province and Kutai Orangutan
Program in Kalimantan," Ms. Greenbury said.

Kampar Carbon Reserve will develop in three phases. Phase one will take
three to six months to do a complete assessment of the land, soil analysis
and community needs, issues and challenges. Phase two, which could take
approximately one year to complete, will involve independent auditors
validating the carbon preservation model and securing third-party investment.
Phase three will extend through the life of the project and will include
activities to both protect and improve the land as well as annual third-party
verification and certification.

ABOUT CARBON CONSERVATION

Carbon Conservation is a pioneering Asian-Australian company based in
Singapore and a world leader in deforestation carbon credits. As a pioneer in
the commercialization of forest‐based carbon offsets, Carbon Conservation
has had numerous successes in the generation of positive marketing rewards
for supporters and participants in our projects. Carbon Conservations high
profile carbon finance projects have been well documented in the media via
various articles in the Wall Street Journal, Fortune Magazine and others.
Some of these achievements include Carbon Conservation's deal with Merrill
Lynch on the Aceh Ulu Masen Project clinching the Carbon Finance Deal of the
Year in 2008. CC's CEO, Dorjee Sun, has also been named one of TIME
magazine's Environmental Heroes of the Year 2009 as well as was featured in
the National Geographic documentary The Burning Season narrated by Hugh
Jackman, which has aired in cinemas and on global TV.

ABOUT APP

Asia Pulp and Paper (APP) is a brand name for 5 pulp and paper mills in
Indonesia. These are PT. Pabrik Kertas Tjiwi Kimia Tbk., PT. Indah Kiat Pulp
& Paper, PT. Pindo Deli Pulp & Paper Mills, PT. Ekamas Fortuna, and PT.
Lontar Papyrus. The paper business was started in 1972 by Indonesian
entrepreneur Eka Tjipta Widjaja, with PT. Pabrik Kertas Tjiwi Kimia in
Mojokerto. APP's mission is to become the 21st Century's number-one
international-standard paper and pulp manufacturer, dedicated to providing
superior value to customers, shareholders, employees and the community.

APP is committed to the protection and conservation of all endangered
wildlife, indigenous species and fauna throughout Indonesia. In addition to
the sustainable management of pulpwood

plantations, APP supports a number of large wildlife projects in areas of
high biodiversity and critical peatland, including: the 106,000-hectare
Senepis Sumatran Tiger Sanctuary in Riau Province; the 172,000-hectare
Biosphere Reserve in the Giam Siak Kecil Bukit Batu region in Riau Province;
the Taman Raja Nature Reserve in Jambi province; The Kutai Orangutan Program
in Kalimantan; and the 76,000-hectare Javan Rhino Sanctuary in Ujung Kulon
National Park.

- Translations Available on Request

Contact: Marie-Louise Burman T: +44(0)207-331-5478 marie-louise.burman at cohnwolfe.com