Georgia-Pacific To Construct Tissue Machine in Oregon

Atlanta, Georgia, USA, 21 August 2006 -- /PRNewswire/ -- Georgia-Pacific Corp. today announced that its board of directors has formally approved the construction of a through-air-dried (TAD) paper machine at its Wauna, Oregon, mill. The machine is part of the company's previously announced investments to further strengthen Georgia-Pacific's commitment to being the leading supplier of premium paper towel and bath tissue products.

Construction at the Wauna mill will begin later this month. The paper machine is scheduled to start up by the end of 2007. The machine will increase the company's production of premium towels to meet the growing needs of customers and consumers -- both for branded and private label products. Installation of related converting equipment is part of the planned upgrade. Total investment for the machine, building, and related equipment is nearly USD 200 million.

"This machine, along with another machine planned for 2008, will enable us to serve the needs of our strategic customers, as well as consumers of fast- growing consumer preferred brands manufactured by Georgia-Pacific," said Mike Burandt, executive vice president - North American consumer products. "Georgia-Pacific is increasing its focus on product and manufacturing innovation for the middle and high end of the market. This project will strengthen our leadership position to deliver the quality products the market requires at the lowest delivered cost."

Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of tissue, packaging, paper, pulp, and building products and related chemicals. The company employs approximately 55,000 people at more than 300 locations in North America, South America, and Europe. Georgia-Pacific's building products manufacturing business has long been among the nation's leading suppliers of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers. For more information, visit www.gp.com.