January/March 2002

Cash generation exceeds R$ 181 million

Cash generation in the first quarter of 2002, against a backdrop of depressed prices and less attractive exports (as the Brazilian Real appreciated in relation to the U.S. dollar), confirms Klabins competitiveness and operating efficiency. The gross margin expanded from 40% to 42%, while its general and administrative expenses dropped 4%, reflecting the initial effects of a successful organizational restructuring. The prices of Klabin's main products are expected to recover progressively over the next few months as local and international demand picks up. This will allow an increase in the cash generation.

March 31, 2002 Shares Outstanding Local Share Price Book Value Free Float Daily Traded Volume 600,856 K R$ 1.11 R$ 1.44 67% R$ 591 K

First Quarter Highlights

Net revenue grows 4%, totaling R$ 558 million. Gross profit reaches R$ 235 million, with a gross margin of 42%. General & administrative expenses fall by 4% EBITDA margin rebounds to 33%.

Quarterly Release May 2, 2002

Initial Considerations
The information presented herewith in connection with the Company's operations and finances consists of consolidated figures stated in local currency, as per Brazilian Corporate Law, except where otherwise indicated. This release compares 1Q02 of Klabin S.A. against 1Q01 of IKPC consolidated, save specifications to the contrary.

Highlights
R$ Million Average Price (R$/ton) Sales Volume (1,000 ton) Net Revenue Gross Profit Gross Margin EBIT Net Profit (Loss) EBITDA EBITDA margin (%) Equity Net Debt Total Capitalization Net Debt / EBITDA (annualized) Net Debt / Total Capitalization Depreciation / Amortization Capex (without acquisitions) 1Q02 1,310 441 558 235 42% 104 8 181 33% 1,296 2,487 3,842 3,4 x 65% 77 42 1Q01 1,327 425 536 217 40% 122 (80) 178 33% 1,428 2,369 3,856 3,3 x 61% 55 64 Change YoY (1%) 4% 4% 8% (15%) 2%

5%

Economic and Financial Performance

Net Revenue and Sales Volume
Net revenue grew 4% in 1Q02 to R$ 558 million. Thanks to responsive management of its product and market mix, Klabin was able to mitigate the effect of low prices, which retreated only 1%, resulting in an average price of R$ 1,310 per ton. Sales volume rose 4% to 441 thousand tons, mostly on account of higher packaging and tissue paper sales. Packaging paper sales increased in volume by 11% as compared to 1Q01, totaling 150,000 tons. Net revenue reached R$ 161 million, pushed up by higher export volumes. This segment accounted for 34% of Klabin's total sales volume and 26% of its net revenue in 1Q02.
2

Quarterly Release May 2, 2002

Corrugated boxes sales volume totaled 121,000 tons, generating a net revenue of R$ 142 million. This product line represented 28% and 23% of the Company's total sales volume and net revenue, respectively, over the period. Late tobacco crops in the State of Rio Grande do Sul (a large consumer of packaging) caused the sales volume of corrugated boxes to slide 5%.
Volume 1Q02

Sales Volume by Market

Pulp 16% Tissue 8% Publication Paper 7%

Sacks/ Envelopes 6%

41%

35%

59%
Corrugated Boxes 28%

65%

Packaging Paper 34%

1Q02
Domestic Market

1Q01
Exports

Others 1%

With a sales volume amounting to 27,000 tons and a net revenue of R$ 49 million, sacks and envelopes accounted for 6% and 8% of the Company's overall sales volume and consolidated net revenue, respectively. In the pulp business (market pulp and dissolving pulp), market prices remained low as compared to their historical average levels. Nevertheless, Klabin was able to increase sales volume by 6% to 72,000 tons, thus generating R$ 70 million worth of net revenue. This product line accounted for 16% of the Company's total sales volume and 12% of its net revenue. As for tissue paper, despite a decrease in average prices in 1Q02, Klabin succeeded in boosting sales and expanding its share of the market for toilet paper and paper towels. Sales volume advanced 21% to 36,000 tons (8% of total volume), while net revenue amounted to R$ 103 million (17% of total net revenue). Publication paper (including newsprint as well as printing and writing paper products) accounted for 7% of the Company's total sales volume and 6% of its total consolidated net revenue, with 29,000 tons sold (down 4%) and R$ 38 million in net revenue. The referred decline in sales volume is attributed to sluggish demand by the press, which also caused newsprint prices to slip. Wood segment sales volume totaled 498,000 tons of eucalyptus and pinus logs, fetching R$ 34 million in net revenue, or 6% of the Company's total sales. Exports in 1Q02 represented 41% of the total volume sold, against 35% in 1Q01. The exports share of net revenue raised from 30% to 31% in the same period.

Quarterly Release May 2, 2002

Net Revenue 1Q02

Net Revenue by Market

Tissue 17% Pulp 12% Publication Paper 6% Sacks/ Envelopes 8%

31%

30%

Wood/ Others 8% Packaging Paper 26%

69%
Corrugated Boxes 23%

70%

1Q02
Domestic Market

1Q01
Exports

Net Revenue consolidated 100%

Operating Result
The gross margin improved from 40% to 42% thanks to an efficient management of its product and market mix, which helped to attenuate the adverse effects of falling prices. Productivity gains also contributed to minimize the unfavorable market conditions, particularly in the packaging paper segment. Operating profit before financial results (EBIT) totaled R$104 million, 15% lower than 1Q01, caused by higher selling expenses (freight costs for exports) and the amortization of sundry goodwill, specially the one paid upon the acquisition of Igaras.

EBITDA
Operating cash generation (EBITDA) advanced 2% in 1Q02, topping R$ 181 million. By controlling its production costs and reducing general and administrative expenses, Klabin saw its EBITDA margin rebound to 33% in 1Q02.

R$ Million

EBITDA Margin
33% 32% 35% 24% 33%
40% 30% 20%

250 200 150 100 50 0

31%

178

178

183

205

163

181

10% 0%

4Q00

1Q01

2Q01

3Q01

4Q01

1Q02

EBITDA

EBITDA Margin

Excluding the effect of the forestry sale in 2Q01 and non recurring expenses in 4Q01 both totaling R$ 42 million

Quarterly Release May 2, 2002

Financial Results and Debt

In 1Q02, net financial expenses amounted to R$ 91 million. Since 69% of the Company's gross debt is denominated in foreign currency, net exchange variations totaled R$ 20 million in 1Q02 versus R$ 154 million in 1Q01. Gross debt rose from R$ 2,526 million in Dec, 2001 to R$ 2,580 million in 1Q02. Of this amount, 56% refers to long-term obligations with maturities extending to 2008. Net debt totaled R$ 2,487 million at the end of March, representing 65% of total capitalization (versus 61% in 1Q01).
Consolidated Debt
12/31/2001 Currency Local Foreign 142 625 767 988 771 1,759 3/31/2002 Currency Local Foreign 165 642 808 1,009 763 1,772

(R$ million) Short Term Long Term GROSS DEBT Cash and Short Term Investments NET DEBT

Total 1,130 1,396 2,526 (68) 2,458

Total 1,175 1,405 2,580 (93) 2,487

Net Profit
Klabin's solid operating performance, allied with the positive effect of lower financial expenses, secured a net profit of R$ 8 million in 1Q02, compared to a net loss of R$ 80 million in 1Q01.

Capital Expenditures
Capital expenditures totaled R$ 42 million in 1Q02, R$ 18 million of which were earmarked for the Company's market pulp mill expansion project in Guaba (RS), whose production capacity will increase from 300,000 to 400,000 tons/year as of May. In expansion projects were invested R$ 8 million and R$ 16 million in equipment maintenance.

Quarterly Release May 2, 2002

Capital Markets
Klabin's preferred shares (KLBN4) were traded in all the trading sessions held by Bovespa [So Paulo Stock Exchange] in 1Q02, totaling 3,295 transactions and 12% of all the pulp & paper company stocks traded there. Altogether, 30.4 million Klabin shares changed hands over this period, with an average daily trading volume of R$ 591,000. KLBN4 closed the quarter quoted at R$ 1.11 per share, with an year-todate appreciation of 13.3%. By contrast, the Bovespa Index fell 2.4%.

Klabin PN vs. Ibovespa - 12 Months

(Closing Price 3/31/2001 = 100) 140 130 120 110 100 90 80 70 60
20 01 4/ 30 /2 00 1 5/ 30 /2 00 1 6/ 30 /2 00 1 7/ 30 /2 00 1 8/ 30 /2 00 1 9/ 30 /2 00 10 1 /3 0/ 20 01 11 /3 0/ 20 12 01 /3 0/ 20 01 1/ 30 /2 00 2/ 2 28 /2 00 2

Klabin

Ibovespa

For further information, please contact:

Ronald Seckelmann, CFO and Investor Relations Director Luiz Marciano Candalaft, Investor Relations Manager Phone: +55 (11) 3225-4045 E-mail: marciano@klabin.com.br Rick Huber Phone: 1 (212) 701-1830 E-mail: richard.huber@thomsonir.com

With gross revenue of R$ 2.8 billion in 2001, Klabin is the largest integrated producer of pulp and paper in Brazil, capable of manufacturing up to 2 million tons of products annually. As part of its corporate strategy, the Company has decided to focus on the following segments: cardboard, corrugated boxes, multiwall bags, tissue paper, wood and pulp. Klabin is a leader in most of the business markets where it operates.

The statements contained in this report regarding the Company's business outlook, projected operating and financial results, and growth potential are merely forecasts based on management expectations as to the future of the Company. Being highly dependent on market trends, industry and international market conditions, and on Brazil's general economic performance, such statements are subject to change.

3/ 30 /

Attachment 1 Consolidated Income Statement Brazilian Corporate Law (Thousand of R$)

1Q02
Net Revenue Cost of Products Sold Gross Profit Selling Expenses General & Administrative Expenses Other Revenues (Expenses) Total Operating Expenses Operating Profit (before Fin. Results) Equity in net profit (loss) of subsidiaries Financial Expenses Net Foreign Exchange Losses Financial Revenues Net Financial Expenses Operating Profit Non Operating Revenues (Expenses) Net Profit (Loss) before Taxes Income Tax and Soc. Contrib. Minority Interest Net Profit (Loss) Amortization / Depreciation EBITDA 558,019 (322,941) 235,078 (77,406) (40,133) (13,543) (131,082) 103,996 175 (78,269) (19,928) 6,847 (91,350) 12,821 (3,898) 8,923 (1,062) (223) 7,638 77,422 181,418

1Q01
535,926 (319,197) 216,729 (52,550) (41,741) (351) (94,642) 122,087 (28) (92,127) (153,648) 12,540 (233,235) (111,176) 2,118 (109,058) 29,593 (283) (79,748) 55,456 177,543

Change
4.1% 1.2% 8.5% 47.3% (3.9%) 38.5% (14.8%) 0.0% (15.0%)

% of Net Revenue 1Q02 1Q01

100.0 57.9 42.1 13.9 7.2 2.4 23.5 18.6 14.0 3.6 1.2 100.0 59.6 40.4 9.8 7.8 0.1 17.7 22.8 0.0 17.2 28.7 2.3 43.5 20.7 0.4 20.3 5.5 0.1 14.9 10.3 33.1

(60.8%)

16.4 2.3 0.7 1.6 0.2 0.0 1.4

(28.4%) (2.1%)

13.9 32.5

Attachment 2 Consolidated Balance Sheet Brazilian Corporate Law (Thousand of R$)

Assets
Current Assets Cash and banks Short-term investiments Receivables Inventories Recoverable taxes and contributions Other receivables 3/31/2002 810,612 21,099 71,950 320,211 252,362 97,740 47,250 12/31/2001 738,574 8,878 59,161 286,604 241,095 100,606 42,230

Liabilities and Stockholders' Equity

Current Liabilities Loans and financing Debentures Suppliers Income tax and social contribution Taxes payable Payroll provisions Dividends payable Other accounts payable Long-Term Liabilities Loans and financing Debentures Other accounts payable Results for Future Fiscal Years Minority Interests Stockholders' Equity Capital Capital reserves Revaluation reserve Profit reserve Retained Earnings Total

3/31/2002 1,494,831 1,166,475 8,434 166,957 11,347 47,787 36,509 0 57,322 1,632,760 1,290,113 115,300 227,347 10,422 58,218 1,296,362 800,000 206,557 96,055 185,944 7,806 4,492,593

12/31/2001 1,469,989 1,126,685 1,995 157,720 13,831 38,064 45,821 30,000 55,873 1,606,044 1,282,042 115,300 208,702 13,028 57,878 1,287,973 800,000 205,430 96,309 186,234 4,434,912

Long-Term Receivables Deferred income tax and soc. contrib. Taxes to compensate Recoverable taxes Other receivables Permanent Assets Other investiments Property, plant & equipment, net Deferred charges

335,298 164,834 30,748 84,572 55,144 3,346,683 92,575 2,908,973 345,135

311,262 151,724 33,454 78,365 47,719 3,385,076 93,302 2,927,085 364,689

Total

4,492,593

4,434,912

Attachment 3 Sales Volume and Net Average Price Consolidated 100%

1000 ton Publication Paper Packaging Tissue Pulp Guaba Camaari Corrugated Boxes Sacks/ Envelopes Others Sum Average Price (R$ /ton) 2000 150 353 144 334 236 98 372 108 13 1,474 1,380 1Q01 30 135 30 70 49 21 128 30 2 425 1,327 2Q01 25 135 34 94 69 25 132 31 2 453 1,301 3Q01 32 120 36 95 66 29 124 27 1 437 1,374 4Q01 37 160 38 81 52 29 126 28 0 469 1,347 YEAR 125 550 138 340 235 105 510 116 5 1,784 1,337 1Q02 29 150 36 73 52 21 121 27 5 441 1,310

Attachment 4
Financing Repayment Schedule March 31, 2002
Total Debt- Average Tenor: 23 months
R$ Million 2Q02 3Q02 4Q02 1Q03 2Q03 2H03 2004 2005 2006 onwards TOTAL Currency Local Foreign TOTAL

50 32 37 47 47 84 238 101 172 808

119 331 462 97 18 369 307 68 1 1.772

169 363 499 144 65 453 545 169 173 2.580

Local Currency Average Terms: 35 months Average Cost 15.3% p.a.

R$ Million 2Q02 3Q02 4Q02 1Q03 2Q03 2H03 2004 2005 2006 onwards TOTAL BNDES Debentures Others TOTAL

35 32 33 37 36 64 111 99 172 619

9 0 0 0 0 0 115 0 0 124

6 0 4 10 11 20 12 2 0 65

50 32 37 47 47 84 238 101 172 808

Foreign Currency Average Terms: 18 months Average Cost 8.6% p.a.

US$ Million 2Q02 3Q02 4Q02 1Q03 2Q03 2H03 2004 2005 2006 onwards TOTAL Trade Finance Eurobonds Others TOTAL

31 86 84 19 6 125 74 24 0 449

5 0 109 0 0 0 23 0 0 137

15 57 6 22 2 34 35 5 1 177

51 143 199 41 8 159 132 29 1 763

10