Asia PR News

SHANGHAI, Aug. 30 /PRNewswire-AsiaNet/ –

IP Could Expand Global Coated Board Platform to Asia

International Paper today confirmed the company is in discussions with
Shandong Sun Paper Ltd. about the formation of a joint venture for coated
paperboard production in China.

( Logo: http://www.newscom.com/cgi-bin/prnh/20020701/IPLOGO )

The joint venture discussions center on IP purchasing a 50-percent
interest in Sun’s coated board assets in Yanzhou City, Shandong Province. Sun
produces 425,000 metric tons per year of coated board on two machines. A final
agreement would require various governmental, regulatory and board approvals.

IP and Sun are also conducting a joint feasibility study to consider the
addition of a third machine in late 2007, which would increase annual capacity
by 300,000 metric tons.

"Coated board production in China is an important facet of our strategy to
selectively grow our key packaging platform business in Asia," said John
Faraci, International Paper chairman and chief executive officer. "We are
optimistic about the opportunity to partner with Sun to increase our strong
position in the market and expand service to our global customer base. Among
the goals of our discussions at this stage is ensuring any investment we make
meets our stated investment criteria."

Coated paperboard is used to produce a variety of consumer packaging
products, including high-performance folding cartons for aseptic and tobacco
packaging. International Paper currently produces coated board in the U.S.,
Poland and Russia, and serves customers across the globe.

International Paper (http://www.internationalpaper.com) is the world’s
largest paper and forest products company. Businesses include paper,
packaging, and forest products. As one of the largest private forest
landowners in the world, the company manages its forests under the principles
of the Sustainable Forestry Initiative(R) (SFI) program, a system that ensures
the continual planting, growing and harvesting of trees while protecting
wildlife, plants, soil, air and water quality. Headquartered in the United
States, International Paper has operations in over 40 countries and sells its
products in more than 120 nations.

SOURCE: International Paper

/CONTACT:

Brian McDonald, Asia, +86-21-6113-3298,

or Amy J. Sawyer, U.S., +1-203-541-8308,

both for International Paper /

/Photo: http://www.newscom.com/cgi-bin/prnh/20020701/IPLOGO /
/Web site: http://www.internationalpaper.com /
(IP)