International Paper to Convert From Uncoated Paper to Lightweight Linerboard Production at Pensacola Mill

Pensacola, Florida, USA, 09 January 2007 -- International Paper (NYSE:IP) today announced it will discontinue production of uncoated paper at its Pensacola, Florida, mill in April or May of this year to begin the conversion of its 350,000 tons/year uncoated paper machine to a 500,000 tons/year lightweight linerboard machine.

Originally, International Paper planned to cease uncoated paper production in July 2007 at the Pensacola mill, but the company moved up the date to provide adequate time to complete the conversion and provide for an on-schedule startup of lightweight linerboard production this fall.

"This timeline will enable our conversion teams to complete equipment changes and employee training while delivering the project on schedule at the lowest possible cost," said Wayne Brafford, International Paper's senior vice president. "As we move forward, we are working closely with employees and customers to ensure a smooth transition of the mill into a globally competitive lightweight linerboard facility."

The machine conversion at Pensacola is part of International Paper's transformation plan to focus on its global uncoated papers and packaging businessesm and its North American distribution business. The company is realigning its North American mill system to increase operational efficiencies and to redeploy capital to the most competitive, lowest-cost facilities.

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, 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.