Suzano Bahia Sul Papel e Celulose S.A. Announces Conclusion of Merger Transaction

Sao Paulo, Brazil 03 August 2004 /PRNewswire/ -- Suzano Bahia Sul Papel e Celulose S.A. (Company) -- the new corporate name of Bahia Sul Celulose S.A. (Bahia Sul) -- announces that:

1. On August 2, 2004, the period for stockholders of Companhia Suzano de Papel e Celulose ("Suzano") to exercise their right to withdraw from that company expired. This right arose from the decision by the Extraordinary General Meeting of Suzano held on June 30, 2004, to approve the downstream merger of Suzano into Bahia Sul.

2. For this reason, the Company now confirms the success of the transaction in which Suzano was merged by the Company, and hereby informs the public that, starting August 5, 2004, the shares issued by the Company will be traded on the Sao Paulo stock exchange (Bovespa) under the ticker symbols "SUZB3" for the common shares, "SUZB5" for the class A preferred shares, and "SUZB6" for the class B preferred shares.

3. As explained in the "Announcement of Material Event" published on July 1, 2004, the company's shares will undergo a reverse split in which 18.2765 shares become one new share -- the exchange ratio used in the merger transaction approved at the Extraordinary General Meeting of the Company of June 29, 2004 -- and this will enable the shares to be quoted in unit form and traded in lots of 100 shares.

4. In cases where the reverse split results in a fractional number of shares, this number will be rounded upwards, at no cost to the stockholder.

Due to this transaction, the Company's second quarter results will be published on August 14, 2004.

The figures on liquidity of both shares will be added for trading history purposes, in view of the strategic purpose of having the shares of the Company included in the main BOVESPA indexes.

Suzano Bahia Sul Papel e Celulose S.A. (Suzano Papel e Celulose) is one of the largest fully integrated producers of pulp and paper in Latin America, with a pulp capacity production of 1.1 million tons and paper capacity production of 820 thousand tons. The Company offers a broad range of pulp and paper products for the domestic and international markets, with a leadership position in key Brazilian markets. The Company has four lines of principal products: (i) eucalyptus pulp; (ii) uncoated woodfree printing and writing paper; (iii) coated woodfree printing and writing paper; (iv) and paperboard.

Certain statements in this document may constitute forward-looking statements. Such statements are subject to known and unknown risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the forward-looking statements. These risks include the full effectiveness of this transaction, according to the Brazilian Corporate Legislation.
Source: Cia. Suzano de Papel e Celulose S.A.

Web site: http://www.suzano.com.br/

Norampac Inc. Acquires AIM Corrugated Container Corp.

MONTREAL, 30 August 2004/PRNewswire/ -- Norampac Inc. announces that it has completed the acquisition of AIM Corrugated Container Corp. assets, a corrugated products converting plant located in Lancaster, New York. This investment is in keeping with Norampac's development plan, designed to expand its presence in the northeastern United States.

The 95,000-square-foot plant employs some 128 people. Founded in 1962, this independent company specializes in the manufacture of every type of corrugated box. Because of the facility's strategic location, the management of this new plant and that of our Buffalo converting plant will be entrusted to the former shareholders of AIM. This will make it possible to capitalize on a number of synergies.

"With this acquisition, Norampac is expanding further into the North American market by acquiring plants with an excellent reputation in the eyes of their clients. Indeed, not only does the Lancaster facility have a well- established client base, but it also boasts state-of-the-art equipment, an experienced staff and a wide range of products and services," explained Marc- Andre Depin, President and Chief Executive Officer of Norampac Inc.

AIM Corrugated Container Corp. is the second U.S. acquisition for Norampac this year, bringing the total number of its corrugated products converting plants in the country to six. In addition to the Buffalo division and the brand new Lancaster plant, Norampac has divisions in Leominster, Massachusetts and Thompson, Connecticut, as well as in New York City and Schenectady, New York. This latest acquisition only further increases Norampac's level of integration.

Norampac owns eight containerboard mills and twenty-six corrugated  products converting plants in Canada, the United States and France. With  an annual production capacity of more than 1.6 million short tons,  Norampac is the largest containerboard producer in Canada and the seventh  largest in North America. Norampac, which is also a major Canadian  manufacturer of corrugated products, is a joint venture of Domtar Inc.  (symbol: DTC-TSX) and Cascades Inc. (symbol: CAS-TSX).

Potlatch to Sell Minnesota OSB Facilities to Ainsworth Lumber Co. Ltd. for $457.5 Million

Spokane, WA, USA 26 August 2004--(BUSINESS WIRE)---

Potlatch Corporation (NYSE:PCH) today announced that the company has signed a definitive agreement for the sale of its oriented strand board (OSB) plants and associated assets, including a cogeneration facility, to Ainsworth Lumber Co. Ltd for $457.5 million in cash.

Potlatch's OSB plants, located at Grand Rapids, Bemidji and Cook, Minnesota, produce approximately 1.3 billion square feet (3/8" basis) of commodity and specialty OSB products. In addition to the sale of the plants and related assets, Ainsworth will also acquire certain intellectual property from Potlatch. The approximate book value of the OSB plants and associated assets, including working capital, is $180 million.

Ainsworth Lumber Co. Ltd, headquartered in Vancouver, British Columbia, is a leading producer of oriented strand board in North America with total OSB capacity of 2.0 billion square feet (3/8" basis).

The sale is subject to customary closing conditions, including regulatory clearances, and should be completed in the third quarter of 2004. Goldman, Sachs & Co. acted as financial advisor to Potlatch.

Potlatch's Bemidji lumber mill, located near the Bemidji OSB plant site, will continue to be owned and operated by Potlatch. Potlatch is also Minnesota's largest private forestland owner and will continue to manage its 320,000 acres of forestlands in Minnesota.

Potlatch Chairman and Chief Executive Officer L. Pendleton Siegel emphasized that the sale of the company's OSB plants and associated assets is consistent with Potlatch's underlying strategy of increasing shareholder value.

"Our oriented strand board business has been very profitable in the last 18 months and contributed greatly to Potlatch's profitability during that period," Siegel noted. "Prior to the Ainsworth offer, Potlatch had not planned to sell the oriented strand board plants. However, after considering Ainsworth's offer in relation to the OSB plants' value to Potlatch over the long term, it was apparent that Ainsworth's strengths, opportunities and synergies allowed Ainsworth to place a price acceptable to us on Potlatch's OSB plants." Siegel went on to say, "As a result, Potlatch's board believed accepting the Ainsworth offer was of greater long-term benefit to Potlatch shareholders than continuing to operate the OSB plants under Potlatch ownership."

Siegel added that Potlatch has been consistently working to reduce debt and achieve a more conservative debt-to-equity ratio. "Cash proceeds of this transaction after taxes, combined with current cash on hand, will roughly equal the $600 million in debt remaining after this transaction. However, given the current interest rate markets, our first attractive opportunity to repay debt will be to call the $250 million subordinated bonds in 2006. The Potlatch board is evaluating strategic options for use of excess cash to increase shareholder value," Siegel concluded.

"Our primary remaining asset in the Minnesota -- 320,000 acres of forestland -- has been managed for long-term sustainable production and has been third-party certified to demonstrate our commitment to responsible stewardship and to enhance the marketability of our wood. We also have a highly competitive lumber manufacturing facility in Bemidji, Minnesota, which we will continue to operate," Siegel stated.

This news release contains, in addition to historical information, certain forward-looking statements. These forward-looking statements are based on management's best estimates and assumptions regarding future events, and are therefore subject to known and unknown risks and uncertainties and are not guarantees of future performance. The company's actual results could differ materially from those expressed or implied by forward-looking statements. The company disclaims any intent or obligation to update these forward-looking statements.

Additional information is available on the Potlatch Corporation website at www.potlatchcorp.com. Information about Ainsworth Lumber Co. Ltd. can be found at www.ainsworth.ca.