International Paper Completes Sale of Coated and Supercalendered Papers Business

Memphis, Tennessee, USA, 01 August 2006 -- /PRNewswire/ -- International Paper (NYSE: IP) has completed the previously announced sale of its coated and supercalendered papers business to CMP Holdings LLC, a subsidiary of Verso Paper Holdings LLC, an affiliate of Apollo Management L.P., for approximately USD 1.4 billion, subject to certain post-closing adjustments. This includes approximately USD 30 million in the form of a 10% limited partnership interest in CMP Investments L.P., the parent company of CMP Holdings. This interest includes the right to receive certain additional payments contingent upon the buyer's achievement of certain investment return hurdles.

In a separate transaction, International Paper has agreed to sell the Sartell Hybrid Poplar Farm to CMP Fiber Farm LLC, a subsidiary of CMP Investments.

The coated and supercalendered papers business, which will be renamed Verso Paper Holdings LLC post-closing, annually produces approximately 1.7 million tons of coated freesheet and coated groundwood papers for the magazine, catalog, and retail insert markets. It includes four paper mills, located in Jay, Maine; Bucksport, Maine; Quinnesec, Michigan; and Sartell, Minnesota. The business, which will remain headquartered in Memphis, Tenn., employs approximately 3000 people and generated USD 1.6 billion in sales in 2005.

Headquartered in the United States, International Paper has been a leader in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the United States, Europe, South America, and Asia. These businesses are complemented by an extensive North American merchant distribution system. International Paper is committed to environmental, economic, and social sustainability, and has a long-standing policy of using no wood from endangered forests. To learn more, visit http://www.internationalpaper.com.

SOURCE: International Paper