FOR FURTHER INFORMATION, CONTACT:

IKPC - Indstrias Klabin de Papel e Celulose S.A.

Mr. Luiz Marciano Candalaft Investor Relations Manager Phone: (55 11) 3225-4045 - Fax: (55 11) 3225-4245 E-mail: marciano@klabin.com.br Webpage: http://www.klabin.com.br

Kl abi n announces Fi rst Quarter 2000 Resul ts

(So Paulo, May 10, 2000) Indstrias Klabin de Papel e Celulose S.A ( Klabin) [OTC: IKLBY, BOVESPA: KLAB4] today announced its results for the first quarter of 2000. The operating and financial information, except where otherwise indicated, are presented in consolidated numbers and in Brazilian Reais, according to Brazilian corporate law. Klabin had consolidated net income of R$ 37.7 million during the first quarter of 2000, compared to a loss of R$ 139.4 million for the same period of 1999. The profit for the quarter was chiefly a result of a 26% average increase in prices. Of particular note was the consistent growth in cash generation (under the international concept of EBITDA), which reached R$ 144 million in the period, and has consistently increased over the last 5 quarters.
1 EBITDA1

Operating Results2
138 144
R$ million

R$ million

106 95

106 98

115 71 64

82

1Q/99

2Q/99

3Q/99

4Q/99

1Q/00

1Q/99

2Q/99

3Q/99

4Q/99

1Q/00

1 Earnings before interests, tax, depreciation and amortization

2 before financial expenses

Main Financial Indicators

Consolidated (R$ million) Gross operating revenues Net operating revenues Gross profit Operating profit (before financial result) Net income EBITDA EBITDA Margin Total assets Stockholders' equity Net debt Capital expenditures 1Q/2000 463.4 407.9 181.9 106.1 37.7 144.4 35.4% 3,192.3 1,006.4 1,322.8 63.8 1Q/1999 354.1 314.0 121.5 63.8 (139.5) 97.3 31.0% 2,942.5 1,045.5 1,280.8 30.2 Change
30.9% 29.9% 49.7% 66.3% 48.4%

8.5% (3.7%) 3.3% 111.3%

Economic-Financial Performance
Net Revenues The fully consolidated net operating revenues were R$ 453.5 million during the first quarter, an increase of 30.7% compared to the same period of 1999.

1Q/2000 Sales Volume (tons) Exports Domestic market Net Revenues ('000 R$) Exports Domestic market 319,346 103,770 215,576 407,857 114,941 292,916

1Q/1999 322,444 111,342 211,102 313,951 97,828 216,123

Chg % -1.0% -6.8% 2.1% 29.9% 17.5% 35.5%

Volume remained stable during this quarter in comparison with the first quarter of 1999, with a small rise in domestic market share in view of a heating up of the domestic market. The exporting units undertook maintenance stoppages during the first quarter, which derived in declining exporting volumes. The behavior of prices and the change in product mix were chiefly responsible for the increase in net revenues. Average prices were 26% higher than in the first quarter of 1999. This strong increase came about as a result of the international situation and firm domestic market demand.

Following Klabin's strategic decision to focus businesses on high value added products, the make-up of the product mix that was sold during the first quarter also was influential in increasing operating revenues, as can be seen in the following chart:

PRODUCT MIX COMPOSITION

(VOLUME)

1Q/1999
322.4 ktons.

1Q/2000
319.3 ktons.

Multi-ply Sacks & Envelopes

Pulp

1%

29%

Multi-ply Sacks & Envelopes

Others

Pulp

1%

22%

7%
Tissue

8%
Tissue

10%
Newsprint & Printing Paper Packaging

11% 20% 22%

Newsprint & Printing Paper

Packaging

23%

11%
cardboard boxes

12%

cardboard boxes

23%

Operating Result and EBITDA The operating result before financial expenses was R$ 106.1 million, an improvement of 66.3% in relation to the same period of 1999. The increase in margins allowed for a cash generation (EBITDA) of R$144 million for the first quarter of 2000, a rise of 48% compared to the same period of 1999. Debt Klabin closed the first quarter of 2000 with a net debt of R$ 1.32 billion, or 46.8% of shareholder's equity. Of the total net debt, 75.8% is funded through long-term financing with maturity dates that extend up until 2007. Debt shrank in comparison to December 1999, in spite of the company's R$ 48 million investment in repurchase of shares. Net Income As a result of the improvements previously mentioned and positively influenced by the exchange rate during the quarter on dollar-pegged debt, the company had net income of R$ 37.7 million during the first quarter of 2000.

Capital Expenditures
During the first quarter of 2000 Klabin and its subsidiaries invested R$ 63.8 million in output expansion, technological updating and acquisition of forests.

Capital Markets
During the first quarter of 2000 Klabin's shares were traded during all trading sessions of the stock market, representing a financial volume of R$ 118.8 million in 3,767 transactions, appreciating 3% over the period.

Performance of Klabin shares (KLAB4) x Ibovespa

120 115 110 105 100 95 90 85 80 03-Jan-00 18-Jan-00 02-Feb-00 17-Feb-00 03-Mar-00 18-Mar-00 02-Apr-00 17-Apr-00 02-May-00

KLAB4

Ibovespa

The Company
IKPC - Indstrias Klabin de Papel e Celulose S.A. holds a leadership position in the segment of forest-related products in Latin America. With gross revenues of R$1.68 billion in 1999, Klabin has operated in the field of reforesting since 1943, in the state of Paran, subsequently initiating the manufacture of pulp and paper, including corrugated cardboard, sacks, envelopes, hygiene products and container for liquids and frozen foods. The group is Brazil's largest manufacturer of paper and its second largest pulp producer besides being the leader in 10 of the 11 markets in which it operates in the packaging and disposable product segments.

Appendix 1

Consolidated Income Statement

Brazilian Corporate Law
Results (Thousands R$) Net Operating Revenues Cost of Sales Gross Profit Selling Expenses General & Administrative Other Operating Result (before Fin. Expenses) Financial Expenses Financial Revenues Operating Result Non Operanting Results Income Tax Prov. and Soc. Contrib. Minority Interest Net Income (Loss) EBITDA 1Q/2000 407,857 (225,940) 181,917 (40,895) (31,572) (3,316) 106,134 (35,819) 11,407 81,722 1,492 (31,232) (14,290) 37,692 144,367 1Q/1999 313,951 (192,460) 121,491 (34,446) (23,370) 163 63,838 (364,833) 80,152 (220,843) (1,457) 52,323 30,520 (139,457) 97,278 Change
93,906 33,480 60,426 6,449 8,202 3,479 42,296 (329,014) 68,745 302,565 2,949 (83,555) (44,810) 177,149

% da Net Revenues 1Q/2000 1Q/1999 100,0% 55,4% 44,6% 10,0% 7,7% 0,8% 26,0% 8,8% 2,8% 20,0% 0,4% 7,7% 3,5% 9,2% 100,0% 61,3% 38,7% 11,0% 7,4% 0,1% 20,3% 116,2% 25,5% -70,4% 0,5% 16,7% 9,7% -44,4%

*EBITDA = Earnings before interest, tax, depreciation and amortization

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Appendix 2 Consolidated Balance Sheet

Brazilian Corporate Lawv (Thousands of R$)

Assets
Current Assets Cash & cash equivalents Held-to-maturity investments Receivables Inventories Recoverable taxes and contributions Other receivables

Mar.2000 765.347 14.592 232.397 232.136 181.660 60.500 44.062

Dec.1999 790.667 8.669 272.030 246.073 170.492 52.451 40.952

Liabilities
Current Liabilities Loans and financing Debentures Suppliers Taxes and social contribution, payable Taxes payable, others Dividends payable Salaries and social charges payable Others payables Long Term Liabilities Loans and financing Debentures Other Results for Future Fiscal Years Minority Interests Shareholders' Equity Share Capital Capital reserves Revaluation reserve Profit reserve Retained earnings Total Liabilities and Shareholders' Equity

Long Term Assets Recoverable taxes Affiliated companies Subsidiaries Other receivables Permanent Assets Property, plant & equipment, net Deferred charges Other Investments

157.372 26.768 2.103 68.916 59.585 2.269.596 2.086.052 110.265 73.279

167.518 27.686 2.029 78.452 59.351 2.231.181 2.031.483 125.241 74.457

Total Assets

3.192.315

3.189.366

Mar.2000 628.781 368.718 11.532 116.315 22.817 33.209 13.998 22.785 39.407 1.273.656 1.039.550 150.000 84.106 31.267 252.182 1.006.429 605.065 109.517 105.999 147.443 38.405 3.192.315

Dec.1999 631.863 407.857 4.515 110.132 3.448 21.354 13.998 28.381 42.178 1.302.709 1.072.105 150.000 80.604 0 237.673 1.017.121 605.065 109.177 106.810 196.069 0 3.189.366

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