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years 1986, 1987 and 1988. This shows broad marketing in that 

 in 1988 we shipped 21 percent of our pulp to important domestic 

 customers, some of which use our pulp in the defense industry. 

 A letter summarizing the importance of our pulp to one such 

 domestic customer, Hercules Incorporated, is attached as 

 Exhibit F. The balance was shipped to 20 countries world-wide 

 to every continent except Australia and Antartica. No country 

 took over 22 percent of our export pulp. The largest customer 

 base was in Taiwan, with India second. 



The applications of Ketchikan dissolving pulp are 

 extensive. Listed below are some of the myriad of end products 

 produced from KPC pulp: 



1. Viscose Rayon - clothing, upholstery, curtains, 

 carpeting, industrial belting, hosing, tires, 

 cellophane/packing, sponges, twine, bristles and flock. 



2. Cuprammonium Rayon - high fashion clothes, women's 

 undergarments, suit linings, artificial kidneys, 

 non-wovens, i.e. disposable protective clothing. 



3. Nitro Cellulose - dice, encapsulated electronic 

 equipment and other moldable products, high speed 

 printing inks, explosives and lacquers. 



4. Microcrystalline Cellulose - pills and caplets, 

 dietary bakery goods, emulsifiers, i.e. sandwich 

 spreads, low calorie ice creams and cosmetics. 



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