International Paper Completes Sale of North American Beverage Packaging Operations

Memphis, Tennessee, USA, 31 January 2007 -- /PRNewswire/ -- International Paper (NYSE:IP) today completed the sale of its North American beverage packaging operations to Carter Holt Harvey Limited for approximately USD 413 million.

In December 2006, the company agreed to sell its entire beverage packaging business to New Zealand-based Carter Holt Harvey. The North American portion of the sale, completed today, represents the majority of the business. The beverage packaging business also includes wholly owned subsidiaries in China, South Korea, and Taiwan, and joint ventures in Latin America, Israel, and Saudi Arabia. The sale of these assets to Carter Holt Harvey is expected to close later in the first quarter, at which time International Paper will receive the remainder of the proceeds from the transaction.

The North American beverage packaging assets include gable-top beverage converting facilities in California, Florida, Massachusetts, Michigan, and North Carolina, and in Ontario and Quebec, Canada; the Evergreen Packaging manufacturing facility in Iowa; and the Pine Bluff mill in Arkansas.

About International Paper

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, Latin 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.

Source: International Paper

Web site: http://www.internationalpaper.com/