Leading the Turkish Market
Until 1965, paper production in Turkey was carried out solely by the state. Kartonsan launched production in late 1970, in order to meet the cardboard deficit of SEKA (Turkish Cellulose and Paper Company) and also to export products overseas. Today, as a totally publicly floated company, Kartonsan boasts a 40% domestic market share. Having celebrated its 40th year in production in 2010, Kartonsan consistently maintains its unchallenged leadership in the Turkish coated-cardboard market and is the fifth largest manufacturer in Europe. The Company exports its goods to 24 countries and its export volume expanded by 53% over the previous year in 2010. One short-term plan of Kartonsan is to become one of the top three manufacturers in Europe. Expanding its production capacity and quality constantly, Kartonsan brought its production volume from an initial 6,500 tons to 180,000 tons today.

In the last decade Kartonsan succeeded in implementing a participatory and corporate governance approach in all of the fields that it is active. As a result of this effort, the Company managed to blend its knowledge base and practical know-how accumulating since its inception, with the authority and accountability required by modern-day management standards. Its corporate governance approach, shaped with jointly made decisions, is the most important safeguard of consistent and sustainable success.Producing to Share
As ever, Kartonsan continues to offer high value added to its stakeholders, by blending an institutionalized management structure with superior production capabilities. The Company's publicly held capital structure allows it to share its financial performance with a wide shareholder base. On the other hand, Kartonsan fulfills its social responsibilities with the principle of ?offering to the community a part of the added value produced?. Thus, it implements several projects in various fields, particularly education. The Company also figures among the highest corporate-tax paying companies in Turkey.

Raising Environmental Awareness
Fully aware of its responsibilities towards the environment, Kartonsan uses 99% recycled paper in a number of its production processes. The Company also processes waste water in a state-of-the-art treatment facility and largely recycles it back to the production process, thus saving significant volumes of water. Kartonsan generates its own energy and the exhaust gas exiting the turbines is not expelled, but channeled through the heat recovery boiler to produce steam. In 2003, the Company started to market the surplus of energy that it generates. Kartonsan carries out all of its activities in the framework of its Integrated Management System (featuring ISO 9001 Quality Management System, ISO 14001 Environmental Management System and OHSAS 18001 Occupational Health and Safety Management System).

Kartonsan's Primary Principle: Continuous Development
In the crisis year of 2009 Kartonsan displayed a superior production and sales performance, and in 2010 the Company augmented its domestic sales volume (in tons) by 11% and expanded its turnover by 23%. The most important driver of this success was the increased demand for cardboard packaging owing to the recovery in target sectors such as food, pharmaceuticals, and small household appliances. Rising demand in neighboring countries also boosted the Company's exports and helped improve its performance.

The packaging market is inclined to grow in parallel with the recovery of consumption. For that reason, as Turkish consumption expands much faster than that of Europe, it is expected that Kartonsan will enjoy a high demand in the first quarter of 2011. Of the Company's shares, 74.79% belongs to the Pak Group and 96.75% is traded on the Istanbul Stock Exchange (ISE) National Market under the ?KRTN? symbol. As it has done for 40 years, Kartonsan is determined to continue its growth on a sound basis, with success and consistency.

The corporate web site at www.kartonsan.com features up-to-date information on the Company's shares and capital structure.