1st Quarter Results

Smurfit Kappa Group
                  Smurfit Kappa Group plc ('SKG or the 'Group') (LSE:SKG) (ISE:SK3), one of the
world's largest integrated manufacturers of paper-based packaging products, with
operations in Europe and Latin America, today announced key financial
performance metrics for the quarter ended 31 March, 2007 and a trading update in
respect of a four month period ended 30 April, 2007.

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*T
2007 First Quarter   Key Financial Performance Measures

EUR M            Q1,         Q1,       Change       Q4,       Change
                 2007        2006                   2006
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Revenue       EUR 1,794   EUR 1,731     +3.6%    EUR 1,749    +2.6%

Pre-           EUR 254     EUR 181      +40%      EUR 254     Unch.
exceptional
EBITDA

EBITDA Margin   14.2%       10.5%      +3.7pts     14.5%     (0.3pts)

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Net Debt      EUR 3,549   EUR 5,011     (29%)    EUR 4,882    (27%)

Net Debt to      3.7                                5.5     (1.8 pts)
EBITDA (LTM)
*T

2007 First Quarter Strategic, Operating & Financial Highlights

    --  Year-on-year EBITDA increase of 40%

    --  Initial Public Offering (IPO) successfully completed - gross proceeds of
        EUR 1,495 million

    --  Net Debt reduced by EUR 1,333 million from EUR 4,882 million at December
        2006 to EUR 3,549 million at March 2007

    --  All primary IPO raising capital to optimise SKG's capital structure and
        accelerate growth objectives

    --  Further synergy benefits achieved, with the programme ahead of target

    --  Continuing focus on efficient capacity management and improving asset
        quality

Outlook

Gary McGann, Smurfit Kappa Group CEO, commented 'Demand is strong and capacity
is increasingly coming into balance across each of our markets. Inventory
levels, for both OCC and recycled containerboard, are significantly below prior
year levels. While we are experiencing near-term margin compression, we are
reporting a solid financial performance for the first quarter. SKG expects to
deliver a FY 2007 outcome in line with current market expectations.'

First Quarter, 2007: Year on year financial performance

For the first quarter of 2007, SKG is reporting net sales of EUR 1,794 million
which represents a 3.6% increase on net sales of EUR 1,731 million in the first
quarter of 2006. EBITDA, before exceptional items, of EUR 254 million increased
40% against EBITDA of EUR 181 million in the first quarter of 2006. This
represents an EBITDA margin on net sales of 14.2% and 10.5% respectively.

Exceptional items in the first quarter of 2007 were EUR 85 million, of which EUR
75 million related to once-off IPO related costs, primarily in respect of the
early paydown of debt.

First Quarter, 2007: Quarter on quarter financial performance

For the first quarter of 2007, SKG is reporting net sales of EUR 1,794 million
which represents a 2.6% increase on net sales of EUR 1,749 million in the fourth
quarter of 2006. EBITDA, before exceptional items, of EUR 254 million was flat
quarter-on-quarter with an EBITDA margin on net sales of 14.2% and 14.5%
respectively.

First Quarter, 2007: Performance Review

SKG's first quarter performance represents a solid financial outcome for the
period but does not fully reflect the expected earnings momentum within the
Group's business. There were a number of factors, during the period, which
limited EBITDA and EBITDA margin growth. These include higher than anticipated
recovered paper and wood prices and increased kraftliner exports from the US,
limiting price increases for European kraftliner.

Corrugated pricing is increasing which reflects the increases in recovered paper
and containerboard pricing implemented during the first quarter. Current market
conditions are supportive of continuing corrugated price increases. However,
there has been some margin compression during the quarter as waste paper price
increases are passed through to containerboard prices and subsequently to
corrugated prices. This margin compression is reflected in the modest decline in
SKG's EBITDA margin in the first quarter relative to the fourth quarter of 2006.
SKG is committed to sensible product pricing and will seek to maximize the
recovery of all of the implemented or announced paper prices increases on
corrugated during 2007.

Capital Structure & Debt pay down

SKG successfully returned to public equity markets through the completion of an
all primary IPO in March, 2007. The Group raised gross proceeds of EUR 1,495
million through a global institutional offering which was significantly
oversubscribed. This comprised an initial public offering of EUR 1,300 million
and the full exercise of over-allotment arrangements which raised an additional
EUR 195 million. Proceeds were applied to optimise SKG's capital structure. The
Group's financial objective for 2007 is equity accretion through debt pay down
as the expected benefits of a better pricing environment are realised.

Synergies & Re-structuring Costs

Following the conclusion of the merger of the operations of JSG and Kappa, one
of the Group's key priorities was the delivery of defined synergy benefits of
EUR 160 million at the end of three years. Target synergy areas included paper
mill rationalization, paper logistics and integration, optimization of the SKG
corrugated system, specialties, purchasing savings and central and
administrative overhead savings. SKG's synergy programme delivered approximately
EUR 87 million in 2006, ahead of the Group's target of EUR 60 million. SKG's
annualised synergy run rate, at the end of 2006, was approximately EUR 124
million. This was also ahead of SKG's original expectation of a run rate of EUR
95 million per annum by the end of 2006.

In the first quarter of 2007, SKG delivered synergy benefits of EUR 34 million
as against EUR 9 million in the first quarter of 2006 and EUR 31 million in the
fourth quarter of 2006. The momentum behind the synergy programme continues and
SKG's current objective is to deliver total synergy benefits, ahead of the
original EUR 160 million estimate, by the end of three years.

Efficient Capacity Management

During 2006, SKG rationalised 495,000 tonnes of high-cost recycled
containerboard capacity, primarily through machine closures and through
permanent grade switches to kraftliner and semi-chemical medium. In addition,
SKG closed 60,000 tonnes of coated paper and 20,000 tonnes of folding boxboard.
These closures and grade switches are contributing to an improving overall cost
profile for SKG's existing mill system.

In March 2007, SKG announced the closure of a mill in Alaincourt, France, with
capacity of 90,000 tonnes of recycled containerboard. SKG will use the machine
from this mill to replace another machine within its system; however, the net
reduction in tonnage will be a minimum of 60,000 tonnes. SKG also recently
implemented the closure of two corrugated plants, a solid board machine, and a
solid board packaging operation. Operating cost reduction and further improving
the quality of the Group's existing asset base will be the subject of ongoing
projects in 2007 and beyond.

The Group will also continue to assess opportunities to expand in Eastern Europe
and Latin America, where SKG believes it can enhance its market position and
earnings profile in what are attractive and high growth markets. Capital
expenditure is expected to be approximately 90% of depreciation for the 2007
full year.

Trading update for four months to 30 April, 2007

Overall trading in the first four months of 2007 is significantly ahead of the
same period in 2006. This reflects tight market conditions in recycled
containerboard in Europe together with the benefit of a positive price
environment. The benefit of higher containerboard pricing was partly offset in
the period by higher raw material prices. Box prices are being progressively
increased to recover containerboard prices increases. The implementation of box
price increases is, however, a slower process than the implementation of paper
price increases. While overall price momentum is positive, there is some margin
pressure within the Group's corrugated system as current box pricing does not
yet reflect higher containerboard prices.

In Latin America, the Group's operations benefited from a combination of higher
sales volumes and higher average selling prices during the first four months
relative to the comparable period in 2006. Demand growth is generally positive
across the region with overall corrugated volumes showing a significant
year-on-year increase. A combination of strong demand and a generally better
pricing environment is contributing to increased earnings growth for this
region.

Packaging

The Group's packaging business comprises primarily its European and Latin
American containerboard mills and corrugated container plants. Containerboard
and corrugated volumes were relatively flat year-on-year in Europe during the
first four months of 2007. This outcome is lower than market growth levels for
the period. This reflects disposals and the closure of containerboard and
corrugated capacity year-on-year and SKG's disciplined stance on product
pricing. Revenue growth, for the packaging business, therefore, primarily
reflects improved product pricing year-on-year.

Packaging: Europe

Five containerboard price increases were implemented in Europe from the fourth
quarter of 2005 through to the end of 2006. This positive price momentum for
recycled containerboard during 2006 continued into 2007 with a EUR 30 per tonne
increase for recycled containerboard being implemented during the first quarter.
A second price increase, of EUR 30 per tonne, has been announced for May/June,
primarily to recover the significant increase in recovered fibre costs. Strong
export demand has contributed to an increase in the cost of recovered paper
prices while wood prices are also experiencing upward price pressure as
competition from bio-mass projects increases.

For the quarter, European kraftliner pricing has been comparatively weaker
reflecting an increased level of imports from the United States, caused by slow
domestic US demand and relatively high European prices.

SKG's European mills have benefited from containerboard price increases during
the first four months of 2007. However, as an integrated corrugated
manufacturer, this has resulted in increasing input costs for the corrugated
operations and near-term margin compression. Corrugated prices have increased
considerably year-on-year, however, there continues to be a time lag in the
recovery of the increases in paper on the corrugated box price. The demand
environment in Europe is generally strong and SKG will continue to maintain its
disciplined stance on pricing and seek to recover the necessary price increases
for corrugated.

Higher recycled containerboard volumes were offset by lower kraftliner volumes,
principally as a result of a temporary shut of PM-6, the brown kraftliner
machine, at the Facture mill, following a fire in early January. The machine
re-started production in early April, however, approximately 90,000 tonnes of
production were lost during the closure period. Production from the Facture mill
is being re-introduced without any evidence of the market being destabilized as
a result. Current market conditions for kraftliner show initial indications of
improvement.

Packaging: Latin America

While market conditions vary from country to country, demand growth was
generally positive across the Latin American region with SKG's operations
reporting higher revenue and earnings year-on-year. Overall containerboard and
corrugated volumes were higher than the comparable period in 2006.
Containerboard volume growth was impacted by capacity constraints in certain of
the Group's mills, primarily in Colombia and Mexico.

Specialties: Europe

The Group's specialties business comprises those European mills which produce
grades of paper other than containerboard together with related packaging
operations. These principally comprise the Group's graphicboard mills,
solidboard, boxboard and paper sack businesses and the Group's bag-in-box
operations.

The financial performance of SKG's specialties business, in the four months to
April 2007, was lower than the comparable period of 2006. This primarily
reflects a reduced level of profitability in the solidboard operations against a
backdrop of competitive market conditions and the absence, in 2007, of one
solidboard operation, which was sold as required by the EU following the
JSG/Kappa merger. The performance of the specialties business is also being
impacted by rising recovered paper costs. Board prices in general have increased
by over EUR 40 per tonne year-on-year; however, further price initiatives are
required to recover the increase in input costs. SKG will continue to focus on
implementing these price increases to recover the rise in input costs. A broad
based recovery for this business is expected towards the second half of 2007 as
the benefits of the announced price increases and actions taken are realised.

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