Packaging Corporation of America

Lake Forest, Illinois, USA, 26 February 2009 --- (BUSINESS WIRE) --- Packaging Corporation of America (NYSE:PKG) announced today that its board of directors has reduced the company’s quarterly common stock dividend from USD 0.30 per share to USD 0.15 per share, effective for the dividend payable 15 April 2009, to shareholders of record on 13 March 2009.

This action was taken as a precautionary measure to help ensure that the company’s overall financial position, including liquidity and compliance with debt covenants, remains strong, even if economic conditions continue to worsen or if the current downturn is prolonged.

Commenting on the board’s decision, Paul T. Stecko, chairman and CEO, said, “We reduced the dividend at this time because it appears that the recession could be deeper and longer than originally anticipated. We recognize the importance to our shareholders of maintaining dividend levels, but in these difficult, uncertain and unpredictable times, we felt it was more important to protect the financial strength and flexibility of the company, which will serve to enhance shareholder value over the longer term.”

PCA is the fifth largest producer of containerboard and corrugated packaging products in the United States. The company had sales of USD 2.4 billion in 2008. PCA operates four paper mills and 67 corrugated product plants in 26 states across the country.