Stora Enso has signed an agreement to acquire Scaldia Papier B.V. from International Paper. Scaldia Papier, which has 180 employees and had net sales of EUR 109 million in 2003 from a sales volume of 55 000 tonnes of paper, will become part of Stora Enso Merchants division. The debt free transaction value is EUR 30 million. The acquisition is expected to be closed in the end August 2004, subject to approval by regulatory authorities.

Stora Enso is acquiring Scaldia Papier to strengthen its presence in the rapidly changing European paper merchant market and to achieve synergies with its Papyrus merchant operations.

Papyrus is a wholly-owned paper merchanting subsidiary of Stora Enso with annual sales of about 500 000 tonnes of paper. Papyrus holds a leading position in the Nordic countries with an average market share of some 40%. Papyrus currently has a presence in twelve European markets, including operations in the Netherlands with net sales of EUR 35 million in 2003 and about 70 employees.

"Scaldia has over the years built a strong identity in the Dutch market for service, quality, assortment and customer base. It will therefore complement and enhance Papyrus's business in Western Europe and help us achieve critical mass in the Netherlands," says Mats Nordlander, President of Papyrus.

Boise Announces Sale of Paper, Building Products, and Timberland Assets

Boise, ID, USA 26 July 2004 /PRNewswire-FirstCall/ -- Boise Cascade Corporation (NYSE:BCC) announced today that it has reached a definitive agreement to sell its paper, forest products, and timberland assets for approximately $3.7 billion to affiliates of Boise Cascade, L.L.C., a new company formed by Madison Dearborn Partners LLC (MDP), a leading private equity investment firm located in Chicago, Illinois.

According to George J. Harad, chairman and chief executive officer, this step marks the completion of the company's review of strategic alternatives, originally announced in July 2003.  "The transaction we are announcing today will complete Boise's transformation, begun in the mid-1990s, from a predominantly manufacturing-based company to a world-scale distribution company. By separating the company into two ongoing entities, we will successfully establish Boise Office Solutions, soon to be OfficeMax, as a strong independent company in the office products distribution business and place our paper and
forest products assets in the hands of a management team that seeks to focus on those businesses.  In the process, we will realize significant value for shareholders," Mr. Harad said.  "I want to personally extend my thanks and appreciation to all Boise employees who have endured with grace and continued hard work a year of uncertainty as we acquired OfficeMax, reviewed strategic alternatives, and reached this successful milestone."

Following the transaction, Boise Cascade Corporation will change its company and trade name to OfficeMax, Inc.  It will continue to operate its office products distribution business, which had annualized first half 2004 sales of $8.6 billion, as its principal business.  Through debt retirement and repurchases, OfficeMax is expected to reduce its outstanding debt to between $250 million to $300 million and be well positioned for continued growth.  It will trade on the New York Stock Exchange under the ticker symbol OMX, and its corporate headquarters will be in Itasca, Illinois.

When the transaction is completed, George J. Harad, currently chairman and chief executive officer of Boise Cascade Corporation, will become executive chairman of the board of OfficeMax, Inc.  Chris Milliken, currently division president and chief executive officer for Boise Office Solutions, will be elected president and chief executive officer of OfficeMax, Inc.

Boise will realize approximately $3.1 billion to $3.2 billion in cash proceeds after allowing for its $175 million reinvestment in Boise Cascade, L.L.C., and its affiliates, a retained interest in a timberland installment note, and certain transaction-related settlements.  Boise currently expects to use approximately $2.2 billion to $2.3 billion of the net proceeds to pay down debt and other obligations and return the remaining $800 million to $1.0 billion of proceeds to shareholders through common and/or preferred stock buybacks, cash dividends, or a combination.

The transaction is expected to be completed by mid-November 2004.  The acquiring company, Boise Cascade, L.L.C., will be privately held and headquartered in Boise, Idaho.  Its chief executive officer will be W. Thomas Stephens, former president and chief executive officer of MacMillan Bloedel Ltd. and former chairman, chief executive officer, and president of Manville Corporation.

"In many respects, this transaction represents a return to Boise Cascade's traditional roots as a leader in the paper and forest products industry," said Mr. Stephens.  "We will continue to operate under the Boise brand name, headquartered in Boise, Idaho, with a focus on operational excellence and delivering value to our customers."

Madison Dearborn Partners is one of the largest and most experienced private equity firms in the United States.  MDP has approximately $8 billion of equity capital under management and makes new investments through its most recent fund, Madison Dearborn Capital Partners IV, L.P., a $4 billion investment fund raised in 2001.

MDP focuses on management buyout transitions and other private equity investments across a broad spectrum of industries including basic industries, communications, consumer, financial services, and healthcare.  Over the last decade, MDP has been one of the most active global investors in the paper, packaging, and forest products sectors, having consummated approximately $11.7 billion of management buyout transactions over that period, including Buckeye Technologies Inc., Graphic Packaging International Corp. (formerly Riverwood International Corp.), Packaging Corporation of America, and Jefferson Smurfit Group, PLC.

"Madison Dearborn Partners is delighted to enter into this transaction with Boise," said Samuel M. Mencoff, co-president of MDP.  "This acquisition is consistent with MDP's investment objectives of acquiring industry-leading companies in partnership with outstanding and committed management teams.  We look forward to working with Tom Stephens and the Boise Cascade management team as they pursue their strategy as a privately held company focused solely on their traditional paper and forest products markets."

Included in the sale are the Boise Cascade Corporation headquarters building in Boise, Idaho, and substantially all of the assets of:

Boise Building Solutions, a major producer of plywood, lumber, particleboard, and engineered wood products (laminated veneer lumber, wood I-joists, and laminated beams).  Most of Boise's production is sold to independent wholesalers and dealers and through its own wholesale building materials distribution outlets.  Boise manufactures wood products at 22 facilities in the United States, Canada, and Brazil.  Boise's 27 wholesale building materials distribution facilities in the United States sell a wide range of building materials to retail lumber dealers, home centers specializing in the do-it-yourself market, and industrial customers.  Boise Building Solutions' first half 2004 sales totaled $1.9 billion.

Boise Paper Solutions, a manufacturer of uncoated free sheet papers -- office papers, printing papers, forms bond, envelope papers, and value-added papers. Boise's value-added papers include security papers, specialty base stocks, financial printing papers, recycled papers, and laser and inkjet papers.  Boise also produces containerboard and corrugated containers, newsprint, and market pulp.  The division operates five pulp and paper mills, two paper converting facilities, six paper distribution centers, and five corrugated container plants in the United States.  Boise Paper Solutions recorded first half 2004 sales of $1.0 billion.

Timberlands.  Boise owns or controls approximately 2.3 million acres of timberland in the United States, 35,000 acres of eucalyptus plantation land in Brazil, and a 16,000-acre cottonwood fiber farm near Wallula, Washington.

J.P. Morgan and Lehman Brothers served as financial advisors and provided committed financing to Madison Dearborn Partners in connection with this transaction.  Madison Dearborn Partners was represented by the law firm of Kirkland & Ellis LLP.

Boise's exclusive financial advisor for the transaction is Goldman, Sachs & Co.

www.bc.com/media.htm.

International Paper Reaches Definitive Agreement to Sell its Canadian Pulp and Wood Business to West Fraser Timber Co., Ltd.

STAMFORD, CT, USA 21 July 2004 /PRNewswire-FirstCall/ -- International Paper (NYSE: IP) today announced it has reached a definitive agreement to sell the capital stock of its Weldwood of Canada, Ltd. subsidiary to West Fraser Timber Co., Ltd. (TSE: WFT) of Vancouver, Canada for approximately C. $1.26 billion (approximately U.S. $950 million), subject to certain adjustments at closing. The transaction is subject to completion of due diligence and financing to be completed by the end of September, as well as applicable regulatory approvals.

International Paper and West Fraser expect to complete the all-cash transaction in the fall, subject to various closing conditions.

"Weldwood is a solid company with outstanding, dedicated people and a proven track record of sustainable forest management. The sale of this business is about making choices regarding how we compete in our core businesses going forward," said International Paper Chairman and Chief Executive Officer John Faraci.

"The stand-alone assets in Canada are based on a different operating model than our businesses in the United States," said Faraci. "Our significant U.S. land base is highly integrated with our wood products operations because they use more than 75 percent of the saw logs we harvest from our own forestland, while Weldwood's wood fiber comes from harvesting rights on government-owned land. Likewise, Weldwood's two pulp mills in Canada are stand-alone facilities, while our U.S. based pulp business is supplied by mills that also produce other products. Weldwood's stand-alone pulp mills are a good fit with West Fraser's pulp business in Canada."

Based on current account balances and exchange rates, International Paper estimates that the cash proceeds at closing, after adjustments, will be approximately (U.S.) $900 million. As a result of net operating loss carryforwards, there should be no current cash outlay for taxes. International Paper estimates that the transaction will result in a one-time accounting loss, subject to certain adjustments, of approximately $425 million before taxes ($780 million after taxes or $1.60 per share) in the third quarter of 2004. The after-tax loss reflects a U.S. taxable gain on the transaction due to the low historic U.S. tax basis in Weldwood. Additionally, Weldwood's operating results will be reclassified as discontinued operations in International Paper's consolidated financial results, beginning in the third quarter of 2004.

"The timing is right for the sale of Weldwood, given the very strong wood products markets. This decision, along with the recent sale of Carter Holt Harvey's tissue business and the purchase of the Box USA corrugated packaging business, reflect choices that we believe will improve the focus of our portfolio, build stronger businesses and improve our future profitability," said Faraci.

Due to this recent period of strong lumber and plywood demand, Weldwood's sales in the first quarter of 2004 were approximately U.S. $225 million, contributing $0.04 per share to International Paper's earnings for the first quarter. In the second quarter of 2004, Weldwood's sales were approximately U.S. $260 million, contributing $0.08 per share to International Paper's earnings for the second quarter. Weldwood's full-year 2003 impact on IP's earnings was $0.02 per share.

The company will provide further commentary on the transaction and answer investor questions in a webcast, hosted by John Faraci, at 9:30 a.m. (EDT) on Thursday, July 22. All interested parties are invited to listen to the webcast live via the company's Internet site at http://www.internationalpaper.com by clicking on the Investor Information button. Persons who wish to listen to the live webcast must pre-register at the site prior to the webcast. A replay of the webcast will also be available on the Web site beginning at noon (EDT) tomorrow.

In addition, persons interested in listening to the call by telephone may dial in at 888-496-6261 within the United States. International callers should dial 303-262-3302 and ask to be connected to "International Paper's Weldwood Call". There is no password. Participants should call no later than 9:15 a.m. (EDT). Slides that correspond with the conference call will be available on the company Web site at http://www.internationalpaper.com under the Investor Information button, beginning at approximately 8:45 a.m. (EDT). There will be a four-week replay of the call. For calls placed within the United States: 800-406-7325. For International callers: 303-590-3030. The password for the replay is 3174875.

Weldwood of Canada, Ltd., (http://www.weldwood.com) manufactures lumber, plywood, laminated veneer lumber, treated wood products and northern bleached softwood kraft pulp for global markets at eight wholly owned and four joint venture mills in British Columbia and Alberta, Canada. Its seven lumber mills have an annual capacity of 1.3 billion board feet. Its two plywood mills have an annual capacity of 450 million square feet and its one laminated veneer lumber mill has an annual capacity of 3 million cubic feet. Weldwood has a market pulp capacity of 675 thousand short tons at its two pulp mills. Headquartered in Vancouver, Weldwood manages nearly 8 million acres of Crown land under a variety of long-term provincial government agreements. Weldwood employs more than 3,000 people.

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) program, a system that ensures the perpetual planting, growing and harvesting of trees while protecting biodiversity, wildlife, plants, soil, water and air quality. Headquartered in the United States, International Paper has operations in over 40 countries and sells its products in more than 120 nations.