Exhibit 99.1

For Immediate Release

MERCER INTERNATIONAL INC. REPORTS 2013 FIRST QUARTER RESULTS

NEW YORK, NY, May 2, 2013 - Mercer International Inc. (Nasdaq: MERC, TSX: MRI.U) today reported results for the first quarter ended March 31, 2013. Operating EBITDA* in the first quarter of 2013 was €24.3 million ($32.1 million), compared to €30.6 million ($40.1 million) in the first quarter of 2012 and €21.3 million ($27.6 million) in the fourth quarter of 2012.

For the first quarter of 2013, we had a net loss of €0.4 million ($0.5 million), or €0.01 ($0.01) per share, compared to net income of €1.2 million ($1.6 million), or €0.02 ($0.03) per share, in the first quarter of 2012 and a net loss of €5.2 million ($6.7 million), or €0.09 ($0.12) per share, for the fourth quarter of 2012.

Summary Financial Highlights

	Q1 2013			Q4 2012			Q1 2012
	(in millions, except per share amounts)
Pulp revenues	€	180.1		€	171.3		€	199.4
Energy and chemical revenues		18.2			17.2			18.9
Operating income		9.5			7.3			16.2
Operating EBITDA		24.3			21.3			30.6
Gain on derivative instruments		4.8			2.4			0.9
Income tax benefit (provision)		(0.9	)		(2.4	)		(0.7	)
Net income (loss) (1)		(0.4	)		(5.2	)		1.2
Net income (loss) per share(1)(2)	€	(0.01	)	€	(0.09	)	€	0.02
Common shares outstanding at period end		55.8			55.8			55.8

(1) Attributable to common shareholders.

(2) Per basic and diluted share.

Summary Operating Highlights

	Q1 2013		Q4 2012		Q1 2012
Pulp Production (‘000 ADMTs)		361.2		349.5		380.3
Scheduled Production Downtime (‘000 ADMTs)		—		18.1		—
Pulp Sales (‘000 ADMTs)		356.7		335.2		384.8
Average NBSK pulp list price in Europe ($/ADMT)(1)		832		803		837
Average NBSK pulp list price in Europe (€/ADMT)		630		619		638
Average pulp sales realizations (€/ADMT)(2)		499		504		512
Energy Production (‘000 MWh)		424.4		405.9		436.2
Energy Sales (‘000 MWh)		173.6		163.8		182.4

(1) Source: RISI pricing report.

(2) Sales realizations after discounts. Incorporates the effect of pulp price variations occurring between the order and shipment dates.

* Operating EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States (“GAAP”) and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. See page 9 of the financial tables included in this press release for a reconciliation of net income (loss) attributable to common shareholders to Operating EBITDA.

Page 2

	Q1 2013		Q4 2012		Q1 2012
Average Spot Currency Exchange Rates:
€ / $(1)		0.7580		0.7707		0.7623
C$ / $(1)		1.0087		0.9912		1.0009
C$ / €(2)		1.3319		1.2862		1.3129

(1) Average Federal Reserve Bank of New York noon spot rate over the reporting period.

(2) Average Bank of Canada noon spot rate over the reporting period.

President’s Comments

Mr. Jimmy S.H. Lee, President and Chairman, stated: “Despite a continued weak NBSK pulp price environment, we achieved Operating EBITDA of €24.3 million in the current quarter, primarily as a result of strong sales volumes and energy and chemical sales at our mills. Overall, pulp sales volumes increased by approximately 6% to 356,660 ADMTs during the first quarter of 2013 from 335,215 ADMTs in the prior quarter. Energy and chemical revenues also increased by approximately 6% to €18.2 million in the current quarter compared to the prior quarter. A weakening of the U.S. dollar by 1% compared to the first quarter of 2012 negatively impacted our operating results.”

Mr. Lee continued: “Pulp prices marginally increased in the first quarter of 2013. However, we believe that overall prices are still low given current projected supply and demand levels. At the end of the first quarter of 2013, list prices in Europe were approximately $840 per ADMT and in North America and China were approximately $900 and $700 per ADMT, respectively.”

Mr. Lee continued: “Project Blue Mill at our Stendal mill, which is designed to increase our Stendal mill’s annual energy production by 109,000 MWh and annual pulp production by 30,000 ADMTs, remains on schedule and budget and is currently expected to start to generate power sales in or about the end of September 2013.”

Mr. Lee added: “Our average overall fiber costs were slightly higher than the previous quarter. Fiber costs at our German mills were up during the first quarter of 2013 due to increased demand from the European pellet and board producers, reduced wood supply because of longer than normal winter weather conditions and lower availability of trucking transportation. Fiber costs at our Celgar mill decreased as a result of increased sawmill activity in the region. The recent extreme weather conditions are expected to put upward pressure on fiber costs at our German mills in the short term, whereas we expect fiber costs at our Celgar mill to continue to decrease in the short term.”

Page 3

Mr. Lee concluded: “We currently expect strong demand from China as purchasers re-stock inventories which, along with annual maintenance shuts by producers, should cause NBSK pulp prices to continue to gradually increase in the medium term.”

Three Months Ended March 31, 2013 Compared to Three Months Ended March 31, 2012

Total revenues for the three months ended March 31, 2013 decreased by approximately 9% to €198.3 million ($261.8 million) from €218.4 million ($286.4 million) in the same period in 2012, due to lower pulp revenues and energy and chemical revenues. Pulp revenues for the three months ended March 31, 2013 decreased to €180.1 million from €199.4 million in the comparative period of 2012, primarily due to the combined effect of lower pulp sales volumes and average pulp sales realizations and a weaker U.S. dollar relative to the Euro.

Energy and chemical revenues decreased by approximately 4% in the first quarter to €18.2 million from €18.9 million in the same quarter last year, primarily as a result of lower pulp production at our Celgar mill.

Pulp production decreased by approximately 5% to 361,164 ADMTs in the current quarter from 380,342 ADMTs in the same quarter of 2012, primarily due to decreased pulp production at our Celgar and Stendal mills. We have 11 days (approximately 16,000 ADMTs) of maintenance downtime scheduled for our Celgar mill in the second quarter of 2013 in order to perform annual maintenance.

Pulp sales volume decreased by approximately 7% to 356,660 ADMTs in the current quarter from 384,826 ADMTs in the comparative period of 2012, primarily due to lower sales to China and the United States. Average pulp sales realizations decreased by approximately 3% to €499 per ADMT in the first quarter of 2013, compared to €512 per ADMT in the same period last year, due to lower pulp prices and a weaker U.S. dollar.

Costs and expenses in the first quarter of 2013 decreased by 7% to €188.7 million from €202.1 million in the comparative period of 2012, primarily due to lower pulp sales volumes and fiber costs, partially offset by higher natural gas costs at our German mills resulting from higher usage and prices.

On average, our overall per unit fiber costs in the current quarter decreased by approximately 2% from the same period in 2012.

Page 4

Selling, general and administrative expenses decreased to €8.9 million in the first quarter of 2013 from €10.1 million in the first quarter of 2012.

For the first quarter of 2013, operating income decreased to €9.5 million from €16.2 million in the comparative quarter of 2012, primarily due to the combined effect of lower pulp prices and sales volumes.

Interest expense in the first quarter of 2013 decreased to €13.1 million from €14.1 million in the comparative quarter of 2012, primarily due to lower debt levels associated with the Stendal mill in the first quarter of 2013.

We recorded a net derivative gain of €4.8 million, which includes a €0.3 million loss related to fixed price pulp swap contracts entered into in the fourth quarter of 2012 and an unrealized gain of approximately €5.1 million on the mark to market adjustment of our Stendal mill’s interest rate derivative, compared to an unrealized derivative gain of €0.9 million in the same quarter of last year.

The noncontrolling shareholder’s interest in each of the first quarters of 2013 and 2012 was €0.7 million.

In the first quarter of 2013, Operating EBITDA decreased to €24.3 million from €30.6 million in the first quarter of 2012. Operating EBITDA is defined as operating income (loss) plus depreciation and amortization and non-recurring capital asset impairment charges. Operating EBITDA has significant limitations as an analytical tool and should not be considered in isolation or as a substitute for our results as reported under GAAP. See page 9 of the financial tables included in the press release for a reconciliation of net income (loss) attributable to common shareholders to Operating EBITDA.

We reported a net loss attributable to common shareholders of €0.4 million, or €0.01 per basic and diluted share, for the first quarter of 2013, which included a net non-cash unrealized gain of €4.7 million on the fixed price pulp swaps and Stendal interest rate derivative, partially offset by a non-cash charge for stock compensation of €0.3 million. In the first quarter of 2012, we reported net income attributable to common shareholders of €1.2 million, or €0.02 per basic and diluted share, which included a non-cash unrealized gain of €0.9 million on the Stendal interest rate derivative, offset by a non-cash charge for stock compensation of €0.9 million.

Page 5

Liquidity and Capital Resources

The following table is a summary of selected financial information as at the dates indicated:

	As at March  31, 2013		As at December  31, 2012
	(in thousands)
Financial Position
Cash and cash equivalents	€	110,664	€	104,239
Working capital		202,331		208,573
Total assets		1,185,560		1,183,603
Long-term liabilities		756,192		768,253
Total equity		275,824		278,925

As at March 31, 2013, we had approximately €26.2 million and C$22.3 million available under our Rosenthal and Celgar facilities, respectively. As at March 31, 2013, approximately €432.9 million was outstanding under our Stendal mill’s loan facility, compared to €467.9 million as at March 31, 2012.

Restricted Group

The following table is a summary of selected financial information for the Restricted Group (which, under the indenture for our 2017 9.5% Senior Notes, is comprised of Mercer International Inc., certain holding subsidiaries and our Rosenthal and Celgar mills) as at the dates indicated:

	As at March 31, 2013		As at December 31, 2012
	(in thousands)
Financial Position
Cash and cash equivalents	€	52,032	€	36,714
Working capital		135,744		132,130
Total assets		661,657		644,119
Long-term liabilities		266,151		260,185
Total equity		330,177		335,353

Earnings Release Call

In conjunction with this release, Mercer International Inc. will host a conference call, which will be simultaneously broadcast live over the Internet. Management will host the call, which is scheduled for Friday, May 3, 2013 at 10:00 AM (Eastern Daylight Time). Listeners can access the conference call live and archived through June 2, 2013, over the Internet at http://investor.shareholder.com/media/event detail.cfm?eventid=128464&CompanyID=MERC&e=1&mediaKey=

1AE35D7DABC3ECD95E2779DA87354812 or through a link on the Company’s home page at http://www.mercerint.com. Please allow 15 minutes prior to the call to visit the site and download and install any necessary audio software.

Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, please visit its web site at http://www.mercerint.com.

Page 6

The preceding includes forward looking statements which involve known and unknown risks and uncertainties which may cause our actual results in future periods to differ materially from forecasted results. Words such as “expects”, “anticipates”, “projects”, “intends”, “designed”, “will”, “believes”, “estimates”, “may”, “could” and variations of such words and similar expressions are intended to identify such forward-looking statements. Among those factors which could cause actual results to differ materially are the following: the highly cyclical nature of our business, raw material costs, our level of indebtedness, competition, foreign exchange and interest rate fluctuations, our use of derivatives, expenditures for capital projects, environmental regulation and compliance, disruptions to our production, market conditions and other risk factors listed from time to time in our SEC reports.

APPROVED BY:

Jimmy S.H. Lee

Chairman & President

(604) 684-1099

David M. Gandossi

Executive Vice-President &

Chief Financial Officer

(604) 684-1099

-FINANCIAL TABLES FOLLOW-

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands of Euros)

	March 31, 2013			December 31, 2012
ASSETS
Current assets
Cash and cash equivalents	€	110,664		€	104,239
Receivables		120,184			110,087
Inventories		112,908			118,300
Prepaid expenses and other		8,295			7,907
Deferred income tax		3,824			4,465
Total current assets		355,875			344,998
Long-term assets
Property, plant and equipment		802,959			808,878
Deferred note issuance and other		11,622			12,162
Deferred income tax		15,104			17,565
		829,685			838,605
Total assets	€	1,185,560		€	1,183,603
LIABILITIES
Current liabilities
Accounts payable and other	€	97,645		€	89,950
Pension and other post-retirement benefit obligations		818			813
Debt		55,081			45,662
Total current liabilities		153,544			136,425
Long-term liabilities
Debt		658,166			665,741
Unrealized interest rate derivative losses		45,513			50,678
Pension and other post-retirement benefit obligations		32,451			32,141
Capital leases and other		13,887			13,936
Deferred income tax		6,175			5,757
		756,192			768,253
Total liabilities		909,736			904,678
EQUITY
Shareholders’ equity
Share capital		248,757			248,371
Paid-in capital		(3,706	)		(3,547	)
Retained earnings		25,375			25,800
Accumulated other comprehensive income		21,570			25,181
Total shareholders’ equity		291,996			295,805
Noncontrolling interest (deficit)		(16,172	)		(16,880	)
Total equity		275,824			278,925
Total liabilities and equity	€	1,185,560		€	1,183,603

(1)

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands of Euros, except per share data)

	Three Months Ended March 31,
	2013			2012
Revenues
Pulp	€	180,120		€	199,439
Energy and chemicals		18,152			18,919
		198,272			218,358
Costs and expenses
Operating costs		165,098			177,770
Operating depreciation and amortization		14,731			14,287
		18,443			26,301
Selling, general and administrative expenses		8,895			10,058
Operating income		9,548			16,243
Other income (expense)
Interest expense		(13,148	)		(14,133	)
Gain on derivative instruments		4,820			876
Other income (expense)		(70	)		(410	)
Total other income (expense)		(8,398	)		(13,667	)
Income before income taxes		1,150			2,576
Income tax benefit (provision)
Current		3,271			(56	)
Deferred		(4,138	)		(676	)
Net income		283			1,844
Less: net income attributable to noncontrolling interest		(708	)		(671	)
Net income (loss) attributable to common shareholders	€	(425	)	€	1,173
Net income (loss) per share attributable to common shareholders
Basic and diluted	€	(0.01	)	€	0.02

(2)

MERCER INTERNATIONAL INC.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands of Euros)

	Three Months Ended March 31,
	2013			2012
Cash flows from (used in) operating activities
Net income	€	283		€	1,844
Adjustments to reconcile net income to cash flows from operating activities
Unrealized gain on derivative instruments		(4,695	)		(876	)
Depreciation and amortization		14,794			14,350
Deferred income taxes		4,138			676
Stock compensation expense		267			868
Pension and other post-retirement expense, net of funding		121			(14	)
Other		1,183			793
Changes in working capital
Receivables		(9,704	)		2,685
Inventories		5,746			11,738
Accounts payable and accrued expenses		10,597			2,649
Other		(782	)		1,424
Net cash from (used in) operating activities		21,948			36,137
Cash flows from (used in) investing activities
Purchase of property, plant and equipment		(11,395	)		(8,465	)
Proceeds on sale of property, plant and equipment		13			226
Net cash from (used in) investing activities		(11,382	)		(8,239	)
Cash flows from (used in) financing activities
Repayment of debt		(20,545	)		(10,126	)
Proceeds from borrowings of debt		10,000			—
Repayment of capital lease obligations		(700	)		(611	)
Proceeds from credit facilities, net		5,968			3,759
Payment of note issuance costs		—			(1,621	)
Proceeds from government grants		730			630
Net cash from (used in) financing activities		(4,547	)		(7,969	)
Effect of exchange rate changes on cash and cash equivalents		406			(805	)
Net increase in cash and cash equivalents		6,425			19,124
Cash and cash equivalents, beginning of period		104,239			105,072
Cash and cash equivalents, end of period	€	110,664		€	124,196

(3)

MERCER INTERNATIONAL INC.

RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE

Combined Condensed Balance Sheets

(Unaudited)

(In thousands of Euros)

The terms of the indenture governing our 9.5% Senior Notes require that we provide the results of operations and financial condition of Mercer International Inc. and our restricted subsidiaries under the indenture, collectively referred to as the “Restricted Group”. As at and during the three months ended March 31, 2013 and 2012, the Restricted Group was comprised of Mercer International Inc., certain holding subsidiaries and our Rosenthal and Celgar mills. The Restricted Group excludes the Stendal mill.

	March 31, 2013
	Restricted Group		Unrestricted Subsidiaries			Eliminations			Consolidated Group
ASSETS
Current assets
Cash and cash equivalents	€	52,032	€	58,632		€	—		€	110,664
Receivables		69,944		50,240			—			120,184
Inventories		72,073		40,835			—			112,908
Prepaid expenses and other		4,834		3,461			—			8,295
Deferred income tax		2,190		1,634			—			3,824
Total current assets		201,073		154,802			—			355,875
Long-term assets
Property, plant and equipment		340,459		462,500			—			802,959
Deferred note issuance and other		6,322		5,300			—			11,622
Deferred income tax		9,222		5,882			—			15,104
Due from unrestricted group		104,581		—			(104,581	)		—
Total assets	€	661,657	€	628,484		€	(104,581	)	€	1,185,560
LIABILITIES
Current liabilities
Accounts payable and other	€	52,688	€	44,957		€	—		€	97,645
Pension and other post-retirement benefit obligations		818		—			—			818
Debt		11,823		43,258			—			55,081
Total current liabilities		65,329		88,215			—			153,544
Long-term liabilities
Debt		221,430		436,736			—			658,166
Due to restricted group		—		104,581			(104,581	)		—
Unrealized interest rate derivative losses		—		45,513			—			45,513
Pension and other post-retirement benefit obligations		32,451		—			—			32,451
Capital leases and other		6,095		7,792			—			13,887
Deferred income tax		6,175		—			—			6,175
Total liabilities		331,480		682,837			(104,581	)		909,736
EQUITY
Total shareholders’ equity (deficit)		330,177		(38,181	)		—			291,996
Noncontrolling interest (deficit)		—		(16,172	)		—			(16,172	)
Total liabilities and equity	€	661,657	€	628,484		€	(104,581	)	€	1,185,560

(4)

MERCER INTERNATIONAL INC.

RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE

Combined Condensed Balance Sheets

(Unaudited)

(In thousands of Euros)

	December 31, 2012
	Restricted Group		Unrestricted Subsidiaries			Eliminations			Consolidated Group
ASSETS
Current assets
Cash and cash equivalents	€	36,714	€	67,525		€	—		€	104,239
Receivables		61,212		48,875			—			110,087
Inventories		74,786		43,514			—			118,300
Prepaid expenses and other		5,811		2,096			—			7,907
Deferred income tax		2,188		2,277			—			4,465
Total current assets		180,711		164,287			—			344,998
Long-term assets
Property, plant and equipment		345,311		463,567			—			808,878
Deferred note issuance and other		6,607		5,555			—			12,162
Deferred income tax		9,179		8,386			—			17,565
Due from unrestricted group		102,311		—			(102,311	)		—
Total assets	€	644,119	€	641,795		€	(102,311	)	€	1,183,603
LIABILITIES
Current liabilities
Accounts payable and other	€	42,106	€	47,844		€	—		€	89,950
Pension and other post-retirement benefit obligations		813		—			—			813
Debt		5,662		40,000			—			45,662
Total current liabilities		48,581		87,844			—			136,425
Long-term liabilities
Debt		216,214		449,527			—			665,741
Due to restricted group		—		102,311			(102,311	)		—
Unrealized interest rate derivative losses		—		50,678			—			50,678
Pension and other post-retirement benefit obligations		32,141		—			—			32,141
Capital leases and other		6,073		7,863			—			13,936
Deferred income tax		5,757		—			—			5,757
Total liabilities		308,766		698,223			(102,311	)		904,678
EQUITY
Total shareholders’ equity (deficit)		335,353		(39,548	)		—			295,805
Noncontrolling interest (deficit)		—		(16,880	)		—			(16,880	)
Total liabilities and equity	€	644,119	€	641,795		€	(102,311	)	€	1,183,603

(5)

MERCER INTERNATIONAL INC.

RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE

Combined Condensed Statements of Operations

(Unaudited)

(In thousands of Euros)

	Three months ended March 31, 2013
	Restricted Group			Unrestricted Subsidiaries			Eliminations			Consolidated Group
Revenues
Pulp	€	100,240		€	79,880		€	—		€	180,120
Energy and chemicals		7,090			11,062			—			18,152
		107,330			90,942			—			198,272
Operating costs		89,523			75,575			—			165,098
Operating depreciation and amortization		8,191			6,540			—			14,731
Selling, general and administrative expenses		5,716			3,179			—			8,895
		103,430			85,294			—			188,724
Operating income		3,900			5,648			—			9,548
Other income (expense)
Interest expense		(5,866	)		(8,930	)		1,648			(13,148	)
Gain (loss) on derivative instruments		(345	)		5,165			—			4,820
Other income (expense)		1,535			43			(1,648	)		(70	)
Total other income (expense)		(4,676	)		(3,722	)		—			(8,398	)
Income (loss) before income taxes		(776	)		1,926			—			1,150
Income tax benefit (provision)		(1,016	)		149			—			(867	)
Net income (loss)		(1,792	)		2,075			—			283
Less: net income attributable to noncontrolling interest		—			(708	)		—			(708	)
Net income (loss) attributable to common shareholders	€	(1,792	)	€	1,367		€	—		€	(425	)

	Three months ended March 31, 2012
	Restricted Group			Unrestricted Subsidiaries			Eliminations			Consolidated Group
Revenues
Pulp	€	109,889		€	89,550		€	—		€	199,439
Energy and chemicals		7,991			10,928			—			18,919
		117,880			100,478			—			218,358
Operating costs		98,336			79,434			—			177,770
Operating depreciation and amortization		7,640			6,647			—			14,287
Selling, general and administrative expenses		6,521			3,537			—			10,058
		112,497			89,618			—			202,115
Operating income		5,383			10,860			—			16,243
Other income (expense)
Interest expense		(5,810	)		(9,664	)		1,341			(14,133	)
Gain on derivative instruments		—			876			—			876
Other income (expense)		825			106			(1,341	)		(410	)
Total other income (expense)		(4,985	)		(8,682	)		—			(13,667	)
Income before income taxes		398			2,178			—			2,576
Income tax benefit (provision)		(715	)		(17	)		—			(732	)
Net income (loss)		(317	)		2,161			—			1,844
Less: net income attributable to noncontrolling interest		—			(671	)		—			(671	)
Net income (loss) attributable to common shareholders	€	(317	)	€	1,490		€	—		€	1,173

(6)

MERCER INTERNATIONAL INC.

RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE

Combined Condensed Statements of Cash Flows

(Unaudited)

(In thousands of Euros)

	Three months ended March 31, 2013
	Restricted Group			Unrestricted Subsidiaries			Consolidated Group
Cash flows from (used in) operating activities
Net income (loss)	€	(1,792	)	€	2,075		€	283
Adjustments to reconcile net income (loss) to cash flows from operating activities
Unrealized loss (gain) on derivative instruments		470			(5,165	)		(4,695	)
Depreciation and amortization		8,254			6,540			14,794
Deferred income taxes		991			3,147			4,138
Stock compensation expense		267			—			267
Pension and other post-retirement expense, net of funding		121			—			121
Other		413			770			1,183
Changes in working capital
Receivables		(8,339	)		(1,365	)		(9,704	)
Inventories		3,067			2,679			5,746
Accounts payable and accrued expenses		10,505			92			10,597
Other(1)		(1,714	)		932			(782	)
Net cash from (used in) operating activities		12,243			9,705			21,948
Cash flows from (used in) investing activities
Purchase of property, plant and equipment		(2,645	)		(8,750	)		(11,395	)
Proceeds on sale of property, plant and equipment		13			—			13
Net cash from (used in) investing activities		(2,632	)		(8,750	)		(11,382	)
Cash flows from (used in) financing activities
Repayment of debt		(545	)		(20,000	)		(20,545	)
Proceeds from borrowings of debt		—			10,000			10,000
Repayment of capital lease obligations		(122	)		(578	)		(700	)
Proceeds from credit facilities, net		5,968			—			5,968
Proceeds from government grants		—			730			730
Net cash from (used in) financing activities		5,301			(9,848	)		(4,547	)
Effect of exchange rate changes on cash and cash equivalents		406			—			406
Net increase (decrease) in cash and cash equivalents		15,318			(8,893	)		6,425
Cash and cash equivalents, beginning of period		36,714			67,525			104,239
Cash and cash equivalents, end of period	€	52,032		€	58,632		€	110,664

(1) Includes intercompany related transactions.

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MERCER INTERNATIONAL INC.

RESTRICTED GROUP SUPPLEMENTAL DISCLOSURE

Combined Condensed Statements of Cash Flows

(Unaudited)

(In thousands of Euros)

	Three months ended March 31, 2012
	Restricted Group			Unrestricted Subsidiaries			Consolidated Group
Cash flows from (used in) operating activities
Net income (loss)	€	(317	)	€	2,161		€	1,844
Adjustments to reconcile net income (loss) to cash flows from operating activities
Unrealized gain on derivative instruments		—			(876	)		(876	)
Depreciation and amortization		7,703			6,647			14,350
Deferred income taxes		676			—			676
Stock compensation expense		868			—			868
Pension and other post-retirement expense, net of funding		(14	)		—			(14	)
Other		58			735			793
Changes in working capital
Receivables		(2,110	)		4,795			2,685
Inventories		4,018			7,720			11,738
Accounts payable and accrued expenses		5,535			(2,886	)		2,649
Other(1)		(6,474	)		7,898			1,424
Net cash from (used in) operating activities		9,943			26,194			36,137
Cash flows from (used in) investing activities
Purchase of property, plant and equipment		(4,218	)		(4,247	)		(8,465	)
Proceeds on sale of property, plant and equipment		186			40			226
Net cash from (used in) investing activities		(4,032	)		(4,207	)		(8,239	)
Cash flows from (used in) financing activities
Repayment of debt		(543	)		(9,583	)		(10,126	)
Repayment of capital lease obligations		(186	)		(425	)		(611	)
Proceeds from credit facilities, net		3,759			—			3,759
Payment of note issuance costs		—			(1,621	)		(1,621	)
Proceeds from government grants		630			—			630
Net cash from (used in) financing activities		3,660			(11,629	)		(7,969	)
Effect of exchange rate changes on cash and cash equivalents		(805	)		—			(805	)
Net increase in cash and cash equivalents		8,766			10,358			19,124
Cash and cash equivalents, beginning of period		44,829			60,243			105,072
Cash and cash equivalents, end of period	€	53,595		€	70,601		€	124,196

(1) Includes intercompany related transactions.

(8)

MERCER INTERNATIONAL INC.

COMPUTATION OF OPERATING EBITDA

(Unaudited)

(In thousands of Euros)

Operating EBITDA is defined as operating income (loss) plus depreciation and amortization and non-recurring capital asset impairment charges. Management uses Operating EBITDA as a benchmark measurement of its own operating results, and as a benchmark relative to its competitors. Management considers it to be a meaningful supplement to operating income (loss) as a performance measure primarily because depreciation expense and non-recurring capital asset impairment charges are not an actual cash cost, and depreciation expense varies widely from company to company in a manner that management considers largely independent of the underlying cost efficiency of their operating facilities. In addition, we believe Operating EBITDA is commonly used by securities analysts, investors and other interested parties to evaluate our financial performance.

Operating EBITDA does not reflect the impact of a number of items that affect our net income (loss), including financing costs and the effect of derivative instruments. Operating EBITDA is not a measure of financial performance under GAAP, and should not be considered as an alternative to net income (loss) or income (loss) from operations as a measure of performance, nor as an alternative to net cash from operating activities as a measure of liquidity. The following tables set forth the net income (loss) attributable to common shareholders to Operating EBITDA for both the consolidated group and our Restricted Group:

	Three Months Ended March 31,
	2013			2012
	(in thousands)
Net income (loss) attributable to common shareholders	€	(425	)	€	1,173
Net income attributable to noncontrolling interest		708			671
Income tax provision (benefit)		867			732
Interest expense		13,148			14,133
Gain on derivative instruments		(4,820	)		(876	)
Other expense (income)		70			410
Operating income		9,548			16,243
Add: Depreciation and amortization		14,794			14,350
Operating EBITDA	€	24,342		€	30,593

	Three Months Ended March 31,
	2013			2012
	(in thousands)
Restricted Group(1)
Net loss	€	(1,792	)	€	(317	)
Income tax provision (benefit)		1,016			715
Interest expense		5,866			5,810
Loss on derivative instruments		345			—
Other expense (income)		(1,535	)		(825	)
Operating income		3,900			5,383
Add: Depreciation and amortization		8,254			7,703
Operating EBITDA	€	12,154		€	13,086

(1) For the Restricted Group, net income (loss) attributable to common shareholders and net income (loss) are the same.

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