Memphis, Tennessee,  USA, 04 August 2008 -- /PRNewswire/ -- International Paper (NYSE: IP) has completed the purchase of the assets of Weyerhaeuser's Containerboard, Packaging, and Recycling (CBPR) business for approximately USD 6 billion in cash, subject to post-closing adjustments.

Because the transaction is a purchase of assets rather than of stock, International Paper will realize a tax benefit that has an estimated net present value of approximately USD 1.4 billion.

"This acquisition aligns well with our strategy to deliver improved bottom line results and further strengthen one of our company's platform businesses," said John Faraci, chairman and chief executive officer. "With a full management team already in place, we are prepared to deliver merger benefits quickly, while continuing to closely manage our capacity with our customers' demand."

Carol Roberts, senior vice president of International Paper's packaging business, said she sees considerable upside potential in the acquisition. "Weyerhaeuser has low-cost, well-run assets that complement our existing mill and converting system and offer significant synergies," she said. "The completion of this acquisition allows us to begin to successfully integrate two very strong industrial packaging businesses. With this good, strategic business fit, we can provide better solutions to meet our customers' needs while becoming more profitable and more competitive as a company," she said.

International Paper has identified profit improvement opportunities of about USD 400 million annually from the acquisition, as a result of reducing duplicate overhead costs, integrating manufacturing operations, optimizing product mix, and improving operational and supply chain efficiencies. The company expects to achieve at least 40% of the improvement within 12 months of completing the transaction. The remainder is expected to be fully realized by the end of the third year.

About International Paper

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tennessee, the company employs more than 50,000 people in more than 20 countries and serves customers worldwide. Net sales for 2007 were approximately USD 22 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

About Weyerhaeuser's CBPR Business

Weyerhaeuser's containerboard packaging and recycling business employs 14,000 people and includes nine linerboard mills, 72 box plants in the United States and four in Mexico, and more than 30 specialty packaging, kraft bag, and recycling operations.