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Boise Idles Newsprint Machine at DeRidder Mill

Boise, Idaho, USA, 27 April 2009 --- Boise Inc. (NYSE: BZ) a leading manufacturer of packaging products and papers, today announced it has indefinitely idled its D-2 newsprint machine at its mill in DeRidder, Louisiana. The D-2 machine has been idled since 09 February. The company will continue to operate the D-3 newsprint machine and the D-1 linerboard machine at the DeRidder mill.

The company began selling newsprint on 01 March of this year, transitioning away from a marketing agreement with AbitibiBowater. While idling capacity, the company has made a commitment to its newsprint business through the formation of an experienced and dedicated sales team led by Sean Terry. Boise Inc. newsprint products have a well-established presence with major newsprint publishers in the southern United States, Mexico, and Central and South America.

"This was a difficult decision because we know it affects our employees, who have performed well and safely," said Alexander Toeldte, president and chief executive officer of Boise Inc. "The drastic decline in newsprint demand is an external factor that none of us can control. Indefinitely idling the machine minimizes our costs while preserving our future options."

The machine has an annual production capacity of 186,000 tons of newsprint. Idling capacity allows the company to reduce operating and capital costs in light of unprecedented declines in demand for newsprint while preserving the asset for potential future use. The D-2 machine is being preserved, enabling the company to restart it within a short period should the need arise. The company also may pursue options to convert the machine to packaging products at a later date.

The indefinite idling will result in a loss of 10 salaried jobs at the DeRidder mill. Eligible salaried employees will be offered severance packages and outplacement assistance. The 95 hourly employees affected will remain on layoff status. Closure agreement negotiations will be scheduled with the United Steelworkers Locals 13-0725 and 1226 to determine the effects for union employees. The company has filed a notice of its intent to indefinitely idle the machine under the WARN Act and will pay union employees in lieu of notice.


The company expects to employ about 450 people at the mill with D-2 idle. 

Headquartered in Boise, Idaho, Boise Inc. manufactures packaging products and papers including corrugated containers, containerboard, label and release and flexible packaging papers, imaging papers for the office and home, printing and converting papers, newsprint, and market pulp. The company's 4350 employees are committed to delivering excellent value while managing Boise's businesses to sustain environmental resources for future generations. For more information, visit www.BoisieInc.com


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