New York, New York, USA, 10 December 2008 -- Mercer International Inc. (Nasdaq: MERC, TSX: MRI.U) today announced the favorable ruling by the Court of First Instance of the European Communities affirming the decision of the Commission of the European Communities to raise no objection against the state aid provided to the company's Stendal mill by the German federal and state governments. This judgment comes nearly six years after two related board manufacturers filed an appeal with the Court against the Commission's decision.

Jimmy S.H. Lee, president and chairman, stated: "We are very pleased with the Court's ruling, which recognizes what we have believed from the beginning; that there is no basis for the Commission to reduce the level of state aid received by our Stendal mill. We are hopeful that this decision will mark the end of these proceedings."

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