Weyerhaeuser Sells Containerboard, Packaging and Recycling to International Paper for $6 Billion in Cash

FEDERAL WAY, Wash.--(BUSINESS WIRE)--March 17, 2008--Weyerhaeuser Company (NYSE:WY) today announced the sale of its Containerboard Packaging and Recycling business to International Paper (NYSE:IP) for $6 billion in cash, subject to post closing adjustments. Weyerhaeuser said it expects to use a substantial portion of the after-tax proceeds from the sale to pay down debt.

The transaction includes nine containerboard mills, 72 packaging locations, 10 specialty-packaging plants, four kraft bag and sack locations and 19 recycling facilities. (See list at end of release for locations.) The transaction affects approximately 14,300 employees.

Steven R. Rogel, chairman and chief executive officer, said the announcement completes the company's strategic review of the CBPR business.

"We are pleased with the outcome and we will continue to focus on those areas that present the greatest opportunities for the future," Rogel said. "This future begins with the trees and the land, and our outstanding stewardship of these resources. To this we add our unique expertise in growing and extracting value from the trees and the land on which they grow.

"I want to thank the CBPR employees for their dedication, patience and professional approach during this review. Their efforts continue to improve the performance of this business and I'm confident that this transaction positions CBPR for an even more successful future."

The transaction is subject to customary closing conditions including regulatory review and receipt of financing by International Paper. The transaction is currently expected to close in the second half of 2008. International Paper has committed financing for the entire purchase price. Weyerhaeuser CBPR and International Paper will continue to operate separately until the transaction closes.

Morgan Stanley acted as financial advisor to Weyerhaeuser in the transaction.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900. In 2007, sales were $16.3 billion. It has offices or operations in 13 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.

                            Location List

  -- Nine containerboard mills (6.3 million tons capacity)

     -----------------------------------------------------------------

           Alabama: Pine Hill

           California: Oxnard

           Iowa: Cedar Rapids

           Kentucky: Henderson

           Louisiana: Campti

           Oklahoma: Valliant

           Oregon: Albany, Springfield

           Mexico: Xalapa

  -- 72 packaging locations (99.4 billion square feet capacity)

     -----------------------------------------------------------------

           Alabama: Huntsville

           Arizona: Phoenix, Yuma

           Arkansas: Fort Smith, Russellville

           California: Anaheim, Camarillo, Compton, Elk Grove, Exeter,

            Modesto, Salinas, Sanger, Santa Paula

           Colorado: Golden

           Florida: Plant City, Tampa

           Georgia: Columbus, Griffin, Lithonia

           Illinois: Aurora, Bedford Park, Belleville, Lincoln,

            Montgomery, Rockford

           Indiana: Butler, Indianapolis

           Iowa: Cedar Rapids, Waterloo

           Kansas: Kansas City

           Kentucky: Bowling Green, Louisville

           Michigan: Three Rivers, Warren

           Minnesota: Austin, Fridley, St. Paul, White Bear Lake

           Mississippi: Jackson, Magnolia, Olive Branch

           Missouri: Maryland Heights, St. Joseph

           Nebraska: Omaha

           New Jersey: Barrington, Bellmawr

           New York: Rochester

           North Carolina: Charlotte, Lumberton, Newton

           Ohio: Delaware, Eaton, Mount Vernon

           Oklahoma: Oklahoma City

           Oregon: Beaverton, Portland

           Tennessee: Cleveland

           Texas: Amarillo, Dallas, McAllen, Sealy

           Virginia: Lynchburg

           Washington: Bellevue, Moses Lake, Olympia, Yakima

           Wisconsin: Manitowoc

           Mexico: Ixtac, Mexico City, Monterrey, Silao

  -- 10 specialty packaging plants

     -----------------------------------------------------------------

           California: Cypress

           Georgia: Tucker

           Illinois: Aurora

           Indiana: Indianapolis

           Kentucky: Richwood

           North Carolina: Charlotte

           Ohio: Delaware

           Oregon: Beaverton, Hillsboro, Salem

  -- Four kraft bag and sack locations (199,000 tons capacity)

     -----------------------------------------------------------------

           California: Buena Park

           North Carolina: Charlotte

           Oregon: Beaverton

           Texas: Dallas

  -- 19 recycling facilities

     -----------------------------------------------------------------

           Arizona: Phoenix

           California: Fremont, Los Angeles/Norwalk, West Sacramento

           Colorado: Denver

           Illinois: Chicago/Itasca

           Iowa: Des Moines

           Kansas: Wichita

           Maryland: Baltimore

           Minnesota: New Brighton

           Nebraska: Omaha

           North Carolina: Charlotte

           Oregon: Beaverton, Eugene

           Tennessee: Memphis

           Texas: Carrollton

           Utah: Salt Lake City

           Virginia: Richmond

           Washington: Kent