WASHINGTON - February 20 - World Wildlife Fund today called on U.S. retail customers of Asia Pulp and Paper, one of the world's largest paper companies, to demand that the company stop unsustainable logging operations. APP and its affiliates in Indonesia are clearcutting one of the world's most biodiverse and threatened forests, WWF said.

APP produces copier paper, student notebooks and other paper products sold in some of the world's largest retail stores. Some of that paper comes from APP's clearcutting of Sumatran rainforest, among the most species-rich forest in the world and vital habitat for Sumatran elephants and tigers. The Indonesian government recognized the importance of the forest last week by pledging to make part of it, known as Tesso Nilo, a national park.

In stark contrast to the progress represented by the government pledge, a six-month negotiation between WWF and APP ended yesterday without an agreement on a sustainability action plan to provide added forest protection. Some of APP's U.S. retail customers, including Office Depot (NYSE: ODP) and Staples Inc. (Nasdaq: SPLS), have supported WWF's negotiations with APP.

"The ongoing harvesting of Sumatra's rare and vulnerable natural forests and the resulting negative effects on endangered species are inconsistent with our corporate values and environmental policies," Office Depot Director of Environmental Affairs Tyler Elm said. "We communicated our concerns directly to APP; specifically, that as of January 19, 2004, Office Depot would no longer source product from APP until there was tangible evidence of a sustainable source."

WWF said it would begin approaching more of APP's retail customers and creditors and asking them to demand that the company immediately implement a sustainability action plan. WWF also called on APP to impose an immediate moratorium on harvesting natural forests while social and environmental impact studies are carried out.

"APP has failed to produce the kind of plan that the international community should expect from a responsible company. We're asking retail customers who buy from APP to consider how their purchasing affects the forest and the endangered Sumatran elephants and tigers that live there," said Tom Dillon, director of WWF's Species Conservation Program.

"APP's logging has wiped out habitat for Sumatran elephants, which are now often forced to raid crops for food. This results in clashes with farmers and local communities, and elephants are being captured and sometimes killed."

In August 2003, APP and its parent company, the Sinar Mas Group, signed a letter of intent agreeing to prepare an action plan for the next 12 years on the sustainability of APP's wood supplies and the conservation of forests of high social and environmental significance. The companies own significant logging concessions in the forests of central Sumatra.

WWF said some progress had been made and is pleased that APP has agreed to set aside a portion of its holdings as a protected area. But the company's proposed plan failed to consider the crucial role of forests in watershed protection and climate regulation and as habitat for key species. And APP is still proposing to cut 445,000 acres of natural forest over the next two years. Sumatra has one of the highest rates of forest loss in the world.

"APP needs to rethink its plans to ensure the company is part of the solution to Indonesia's social and environmental concerns, not a part of the problem," added Dillon. "We're confident that more of the company's corporate customers will join with us to reinforce that message."

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