International Paper Announces Preliminary Results of Debt Tender Offer

Memphis, Tennessee, USA, 07 December 2006 -- /PRNewswire/ -- International Paper (NYSE:IP) today announced that, according to information provided by Global Bondholder Services Corporation, the depositary and information agent for the company's previously announced tender offer, an aggregate principal amount of USD 3.64 billion of the bonds listed below were validly tendered and not validly withdrawn on or before 5:00 p.m., Eastern time, on 06 December 2006 (the early tender date for the offer).

On 22 November 2006, International Paper announced its offer to purchase a portion of its debt securities specified in the table following this release, subject to a total purchase price of USD 2.35 billion (excluding accrued interest, fees, and expenses). The full terms and conditions of the tender offer are set forth in the company's offer to purchase and related letter of transmittal, each dated 22 November 2006.

The amount of each series of bonds that are purchased in the tender offer will be determined in accordance with the priorities identified in the column "Acceptance Priority Level" in the table following this release. The tender offer will expire at 12:00 midnight, Eastern time, on 20 December 2006, unless extended by the company. The table following this release identifies the aggregate principal amount of each series of notes validly tendered and not validly withdrawn on or before the early tender date. Because an amount in excess of USD 2.35 billion in aggregate principal amount of bonds were tendered as of the early tender date, International Paper will not accept all of the notes tendered for purchase. The company's 4.25% Notes due 2009 (CUSIP No. 460146BV4), 5.30% Notes due 2015 (CUSIP No. 460146BU6), 5.25% Notes due 2016 (CUSIP No. 460146BZ5), 4.00% Notes due 2010 (CUSIP No. 460146BY8), and 6.65% Notes due 2037 (CUSIP No. 158525AU9) will not be accepted for purchase, and tendered notes of these series will be promptly returned to the tendering parties.

Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. are the dealer managers of the tender offer and Barclays Capital Inc., Deutsche Bank Securities Inc. and Morgan Stanley are serving as co-dealer managers for the tender offer. Global Bondholder Services Corporation has been retained to serve as the depositary and information agent. This news release is neither an offer to purchase nor a solicitation of an offer to sell the notes. The tender offer is made only by the offer to purchase, and the information in this news release is qualified by reference to the offer to purchase and related letter of transmittal. Persons with questions regarding the tender offer should contact Banc of America Securities LLC at (toll-free) (866) 475-9886, Citigroup Global Markets Inc. at (toll- free) (800) 558-3745 and J.P. Morgan Securities Inc. at (toll-free) (866) 834- 4666. Questions regarding the tendering of notes or requests for copies of the offer to purchase, letter of transmittal and related materials should be directed to Global Bondholder Services Corporation at (212) 430-3774 or (toll- free) (866) 470-4200.

Headquartered in the United States, International Paper has been a leader in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the United States, Europe, South America, and Asia, as well as xpedx, an extensive North American merchant distribution system. International Paper is committed to environmental, economic and social sustainability, and has a long-standing policy of using no wood from endangered forests. To learn more, visit www.internationalpaper.com.

INTERNATIONAL PAPER

NOTES SUBJECT TO THE TENDER OFFER

The following table provides the estimated aggregate principal amount validly tendered and not validly withdrawn for each series of notes subject to the tender offer as of 5:00 p.m., Eastern time, on Wednesday, 06 December 2006. ($ = USD)

CUSIP Title of Security Aggregate Principal
Number Amount Outstanding

158525AQ8 7.75% Debentures due 2025 $123,642,000
158525AR6 7.35% Debentures due 2025 $174,995,000
460146BD4 6.875% Debentures due 2029 $134,715,000
158525AT2 7.20% Debentures due 2026 $200,000,000
158525AV7 7.15% Debentures due 2027 $80,175,000
460146AP8 6.875% Debentures due 2023 $190,000,000
313693AD5 10.0% Debentures due 2011 $23,421,000
313693AF0 8.875% Debentures due 2012 $95,855,000
460146BS1 3.80% Notes due 2008 $288,085,000
905530AH4 9.25% Debentures due 2011 $124,800,000
460146BN2 6.75% Notes due 2011 768,634,000
460146BX0 5.50% Notes due 2014 $351,301,000
460146BQ5 5.85% Notes due 2012 $802,771,000
460146BV4 4.25% Notes due 2009 $407,115,000
460146BU6 5.30% Notes due 2015 $451,588,000
460146BZ5 5.25% Notes due 2016 $281,120,000
460146BY8 4.00% Notes due 2010 $414,350,000
158525AU9 6.65% Notes due 2037 $100,000,000

CUSIP Acceptance Reference U.S. Aggregate Principal
Number Priority Treasury Security Amount Validly
Level Tendered and Not
Validly Withdrawn

158525AQ8 1 4.50% U.S. Treasury Note $92,213,000
due 15 Feb. 2036
158525AR6 2 4.50% U.S. Treasury Note $131,163,000
due 15 Feb. 2036
460146BD4 3 4.50% U.S. Treasury Note $97,475,000
due 15 Feb. 2036
158525AT2 4 4.50% U.S. Treasury Note $39,600,000
due 15 Feb. 2036
158525AV7 5 4.50% U.S. Treasury Note $52,621,000
due 15 Feb. 2036
460146AP8 6 4.50% U.S. Treasury Note $95,717,000
due 15 Feb. 2036
313693AD5 7 4.625% U.S. Treasury Note $22,294,000
due 31 Oct. 2011
313693AF0 8 4.625% U.S. Treasury Note $79,301,000
due 15 Nov. 2016
460146BS1 9 4.875% U.S. Treasury Note $196,363,000
due 31 Oct. 2008
905530AH4 10 4.625% U.S. Treasury Note $80,421,000
due 31 Oct. 2011
460146BN2 11 4.625% U.S. Treasury Note $561,934,000
due 31 Oct. 2011
460146BX0 12 4.625% U.S. Treasury Note $242,575,000
due 15 Nov. 2016
460146BQ5 13 4.625% U.S. Treasury Note $683,912,000
due 15 Nov. 2016
460146BV4 14 4.875% U.S. Treasury Note $339,621,000
due 31 Oct. 2008
460146BU6 15 4.625% U.S. Treasury Note $307,856,000
due 15 Nov. 2016
460146BZ5 16 4.625% U.S. Treasury Note $224,228,000
due 15 Nov. 2016
460146BY8 17 4.625% U.S. Treasury Note $360,367,000
due 15 Nov. 2009
158525AU9 18 4.50% U.S. Treasury Note $36,150,000
due 15 Feb. 2036