Georgia-Pacific and Domtar Sign Letter of Intent for Domtar to Acquire G-P Paper Manufacturing Assets in Arkansas, Maine and Wisconsin

Apr 30, 2001, 01:00 ET from Georgia-Pacific Group

    ATLANTA and MONTREAL, April 30 /PRNewswire/ -- Georgia-Pacific Corp.
 (NYSE:   GP) and Domtar Inc. (NYSE:   DTC; Toronto) today announced that the
 companies have signed a letter of intent for Domtar to acquire a portion of
 Georgia-Pacific's pulp and paper business.  The proposed purchase price and
 other terms were not disclosed pending final agreement between the parties.
     The assets involved are Georgia-Pacific's stand-alone uncoated fine paper
 mills at Ashdown, Ark.; Nekoosa and Port Edwards, Wis.; and Woodland, Maine,
 as well as associated pulp facilities.
     The sale, which is contingent on the completion of due diligence,
 execution of a definitive agreement and customary approvals, is expected to be
 completed in the second quarter 2001.  Georgia-Pacific will use proceeds from
 the sale to repay debt.
     "The transaction will represent another leap forward in Georgia-Pacific's
 ongoing transformation," said A.D. "Pete" Correll, chairman and chief
 executive officer of Georgia-Pacific.  "This major divestiture will serve the
 dual purpose of generating significant cash toward debt reduction while
 further refining our company's portfolio of assets."
     "I am optimistic that we will be able to reach a final agreement with
 Georgia-Pacific that makes sense for both of us," said Raymond Royer,
 president and chief executive officer of Domtar.  "This acquisition is
 consistent with our stated strategy of growing our North American fine paper
 presence, and I believe it will translate into substantial value creation for
 Domtar shareholders while allowing us to maintain strength in our balance
 sheet."
     Annual paper capacity at the Ashdown mill is 825,000 tons, which is
 predominantly copier paper and includes other specialty and offset printing
 papers; the facility's market pulp capacity is 175,000 tons annually.  The
 Port Edward and Nekoosa mills have annual paper capacity of 185,000 and
 218,000 tons, respectively.  The two mills produce various premium, specialty
 and copier grade papers.  The Woodland mill's annual paper capacity is 130,000
 tons and its market pulp capacity totals 380,000 tons.  Combined, the
 facilities being sold employ approximately 3,200 people.
     Georgia-Pacific will continue to own and operate white paper mills at
 Camas, Wash.; Crossett, Ark.; Port Hudson, La.; and Wauna, Ore.  In addition,
 Georgia-Pacific's Unisource subsidiary will remain the sole national
 distributor of Xerox branded papers and supplies and one of North America's
 largest distributors of printing and office paper.
     Headquartered at Atlanta, Georgia-Pacific is one to the world's leading
 manufacturers and distributors of tissue, pulp, paper and building products
 and related chemicals.  With annual sales of approximately US$27 billion, the
 company employs more than 85,000 people at 600 locations in North America and
 Europe.  Its familiar consumer tissue brand include Quilted Northern, Angel
 Soft, Brawny, Sparkle, Soft 'N Gentle, Mardi Gras, So-Dri, Green Forest and
 Vanity Fair, as well as the Dixie brand of disposable cups, plates and
 cutlery.  Georgia-Pacific's building products distribution segment has long
 been among the nation's leading wholesale suppliers of building products to
 lumber and building materials dealers and large do-it-yourself warehouse
 retailers.  In addition, Georgia-Pacific's Unisource subsidiary is one of the
 largest distributors of packaging systems, printing and imaging papers and
 maintenance supplies in North America.
     Domtar Inc. is Canada's largest producer of specialty and fine papers and
 is ranked seventh in North America.  A leading producer of forest products in
 Eastern Canada, Domtar also owns 50 percent of Norampac Inc., the largest
 Canadian producer of containerboard and corrugated containers.  Domtar has
 annual sales of close to cdn$4 billion, mostly in the United States, and has
 9,000 employees across North America.
 
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SOURCE Georgia-Pacific Group
    ATLANTA and MONTREAL, April 30 /PRNewswire/ -- Georgia-Pacific Corp.
 (NYSE:   GP) and Domtar Inc. (NYSE:   DTC; Toronto) today announced that the
 companies have signed a letter of intent for Domtar to acquire a portion of
 Georgia-Pacific's pulp and paper business.  The proposed purchase price and
 other terms were not disclosed pending final agreement between the parties.
     The assets involved are Georgia-Pacific's stand-alone uncoated fine paper
 mills at Ashdown, Ark.; Nekoosa and Port Edwards, Wis.; and Woodland, Maine,
 as well as associated pulp facilities.
     The sale, which is contingent on the completion of due diligence,
 execution of a definitive agreement and customary approvals, is expected to be
 completed in the second quarter 2001.  Georgia-Pacific will use proceeds from
 the sale to repay debt.
     "The transaction will represent another leap forward in Georgia-Pacific's
 ongoing transformation," said A.D. "Pete" Correll, chairman and chief
 executive officer of Georgia-Pacific.  "This major divestiture will serve the
 dual purpose of generating significant cash toward debt reduction while
 further refining our company's portfolio of assets."
     "I am optimistic that we will be able to reach a final agreement with
 Georgia-Pacific that makes sense for both of us," said Raymond Royer,
 president and chief executive officer of Domtar.  "This acquisition is
 consistent with our stated strategy of growing our North American fine paper
 presence, and I believe it will translate into substantial value creation for
 Domtar shareholders while allowing us to maintain strength in our balance
 sheet."
     Annual paper capacity at the Ashdown mill is 825,000 tons, which is
 predominantly copier paper and includes other specialty and offset printing
 papers; the facility's market pulp capacity is 175,000 tons annually.  The
 Port Edward and Nekoosa mills have annual paper capacity of 185,000 and
 218,000 tons, respectively.  The two mills produce various premium, specialty
 and copier grade papers.  The Woodland mill's annual paper capacity is 130,000
 tons and its market pulp capacity totals 380,000 tons.  Combined, the
 facilities being sold employ approximately 3,200 people.
     Georgia-Pacific will continue to own and operate white paper mills at
 Camas, Wash.; Crossett, Ark.; Port Hudson, La.; and Wauna, Ore.  In addition,
 Georgia-Pacific's Unisource subsidiary will remain the sole national
 distributor of Xerox branded papers and supplies and one of North America's
 largest distributors of printing and office paper.
     Headquartered at Atlanta, Georgia-Pacific is one to the world's leading
 manufacturers and distributors of tissue, pulp, paper and building products
 and related chemicals.  With annual sales of approximately US$27 billion, the
 company employs more than 85,000 people at 600 locations in North America and
 Europe.  Its familiar consumer tissue brand include Quilted Northern, Angel
 Soft, Brawny, Sparkle, Soft 'N Gentle, Mardi Gras, So-Dri, Green Forest and
 Vanity Fair, as well as the Dixie brand of disposable cups, plates and
 cutlery.  Georgia-Pacific's building products distribution segment has long
 been among the nation's leading wholesale suppliers of building products to
 lumber and building materials dealers and large do-it-yourself warehouse
 retailers.  In addition, Georgia-Pacific's Unisource subsidiary is one of the
 largest distributors of packaging systems, printing and imaging papers and
 maintenance supplies in North America.
     Domtar Inc. is Canada's largest producer of specialty and fine papers and
 is ranked seventh in North America.  A leading producer of forest products in
 Eastern Canada, Domtar also owns 50 percent of Norampac Inc., the largest
 Canadian producer of containerboard and corrugated containers.  Domtar has
 annual sales of close to cdn$4 billion, mostly in the United States, and has
 9,000 employees across North America.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X44118375
 
 SOURCE  Georgia-Pacific Group

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