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Temple-Inland Completes Sale of 1.55 Million Acres of Timberland
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Austin, Texas, USA, 31 October 2007 --(BUSINESS WIRE)-- Temple-Inland Inc. (NYSE:TIN) today announced that it completed its previously announced sale of 1.55 million acres of timberland for USD 2.38 billion to an investment entity affiliated with The Campbell Group, LLC. The acreage included in the sale consists of 1.38 million acres of land owned in fee and leases covering 175,000 acres. The transaction is part of the company's transformation plan announced in February 2007.

The total consideration consisted almost entirely of notes due in 2027. In early December, the company expects to pledge these notes as collateral for a nonrecourse loan. Loan proceeds, after paying current taxes and transaction costs related to the timberland sale, are anticipated to be approximately USD 1.8 billion. The company expects to use most of these proceeds to pay a special dividend, which is currently estimated to be approximately USD 1.1 billion, or USD 10.25 per share, to its common stockholders. The remaining approximately USD 700 million of the cash proceeds will be used to reduce debt.

The transaction includes a 20-year fiber supply agreement for pulpwood and a 12-year fiber supply agreement for sawtimber, the terms of which are both subject to extension. Fiber will be purchased at market prices. The agreements further require that the timberlands will continue to be managed and third-party certified under the requirements of the Sustainable Forestry Initiative(R) Standard. In addition, The Campbell Group has agreed to continue Temple-Inland's high conservation standards and focus on environmental stewardship.

Temple-Inland reiterated that it is on track to complete its transformation plan by the end of 2007.

Goldman, Sachs & Co., and Citigroup Global Markets Inc. served as financial advisers and Sutherland Asbill & Brennan LLP served as legal adviser to Temple-Inland in connection with the transaction. Morrison & Foerster LLP and Schwabe, Williamson & Wyatt served as legal advisers to The Campbell Group in connection with the transaction. Stewart Title Guaranty Co. was the provider of title insurance and settlement services for this transaction, coordinated by its National Title Services division.

Temple-Inland Inc. operates four business segments: corrugated packaging, forest products, real estate, and financial services. Temple-Inland's common stock (TIN) is traded on the New York Stock Exchange. Temple-Inland's address on the World Wide Web is www.templeinland.com.

The Campbell Group, LLC is a full-service timberland investment management company headquartered in Portland, Oregon. The company is focused exclusively on acquiring and managing high quality, investment-grade forestland on behalf of institutional investors to produce superior risk-adjusted returns. The Campbell Group's address on the World Wide Web is www.campbellgroup.com.


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