NEW YORK, May 22 /PRNewswire-FirstCall/ -- Mercer International Inc. ("Mercer" or the "Company") (Nasdaq: MERC; TSX: MRI.U) today announced that it has commenced a public offering of its shares of common stock. The Company plans to offer approximately 9,000,000 of its shares of common stock (approximately 10,350,000 shares if the underwriters exercise their over- allotment option in full). The offering will be made under the Company's shelf registration statement filed with the Securities and Exchange Commission and dated December 23, 2004. The net proceeds from the offering will be used to increase the Company's equity capital and liquidity. Such proceeds may be utilized to retire debt and for general corporate purposes, including working capital and incremental projects to improve the performance of the Company's pulp mills that may arise from time to time. Raymond James and RBC Capital Markets will be lead managers for the offering of the shares of common stock, with UBS Investment Bank serving as co-manager. The offering of the shares may only be made by means of a prospectus. A copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering of the shares can be obtained from Raymond James at 880 Carillon Parkway, St. Petersburgh, Florida, 33716 or RBC Capital Markets at One Liberty Plaza, New York, New York 10006. Mercer Mercer International Inc. is a global pulp and paper manufacturing company and operates three modern NBSK pulp mills in Germany and Canada with a consolidated annual production capacity of approximately 1.3 million tonnes. This release does not constitute an offer of any securities for sale. Any securities that may be offered in an unregistered offering will not be registered under the Securities Act of 1993 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The preceding includes forward looking statements which involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: market conditions, competition and the other risk factors listed from time to time in the Company's SEC reports. DATASOURCE: Mercer International Inc. CONTACT: David M. Gandossi, Executive Vice-President & Chief Financial Officer of Mercer International Inc., +1-604-684-1099, or investors, Eric Boyriven or Alexandra Tramont, or media, Scot Hoffman, all of Financial Dynamics for Mercer International Inc., +1-212-850-5600 Web site: http://www.mercerinternational.com/

Copyright