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Durango Increases Paper, Box Production in Mexico

April 3, 2006 (Press Release) - Corporación Durango, S.A. de C.V. ("Durango" or the "Company"), the largest integrated paper and packaging company in Mexico,said that the Company and certain of its subsidiaries have entered into a long-term industrial lease with a Mexican affiliate of G.E. Capital.

The leased industrial unit comprises a state-of-the-art paper mill and box plant, located 35 miles from Mexico City, having an annual paper production installed capacity of 200,000 short tons and an annual converting production installed capacity of 100,000 short tons.

The Company intends to fully integrate the leased assets into its production system.

The paper mill and box plant will be operated by "Papel y Empaques Tizayuca, S. A. de C.V.", a newly formed subsidiary wholly owned by Corporacion Durango.

Miguel Rincon, Chairman and CEO of Durango, stated "This transaction represents a unique opportunity to further strengthen our position in a key market during the industry's current up-cycle. By incorporating these high-quality assets under favorable lease terms, we reinforce our commitment to improvements in operations leading to growth in earnings as we continue reducing debt."

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