International Paper Reaches Agreement to Sell Water Company For $100 Million as Part of Its Divestiture Program

Apr 26, 2001, 01:00 ET from International Paper

    PURCHASE, N.Y., April 26 /PRNewswire/ -- International Paper (NYSE:   IP)
 has reached a definitive agreement to sell its Chocolate Bayou Water Company,
 an IP subsidiary in the Houston, Texas, area, to the North Harris County
 Regional Water Authority in Southeast Texas for approximately $100 million,
 subject to certain adjustments at closing. The transaction is subject to
 normal closing conditions, including regulatory approval. The IP company holds
 water rights on the Brazos River and other smaller bayous near Houston.
     "We are delighted that these water assets can be can be put to beneficial
 use by both our current customers in Brazoria County, as well as the
 400,000 citizens in north Harris County," said James Montgaue, IP's general
 manager for Chocolate Bayou Water Company. "Since the Authority intends to
 continue operating the current business, we are optimistic the employees of
 Chocolate Bayou Water Company will have job opportunities with the purchaser.
 This transaction is a win-win for all involved."
     Today's agreement is part of International Paper's program to divest
 assets that no longer fit the company's long-term strategy in the wake of
 acquiring Champion International last year and the merger with Union Camp
 Corporation.
     "This agreement with North Harris County Regional Water Authority proves
 once again that we are committed to divesting assets that no longer fit our
 long-term strategy of focusing on paper, packaging and forest products," said
 John Faraci, IP's chief financial officer and executive vice president.
     International Paper (http://www.internationalpaper.com) is the world's
 largest paper and forest products company. Businesses include paper,
 packaging, and forest products. As one of the largest private forest
 landowners in the world, the company manages its forests under the principles
 of the Sustainable Forestry Initiative (SFIsm) program, a system that ensures
 the perpetual planting, growing and harvesting of trees while protecting
 wildlife, plants, soil, air and water quality.  Headquartered in the United
 States at Purchase, N.Y., International Paper has operations in nearly 50
 countries, employs more than 113,000 people and exports its products to more
 than 130 nations.
 
     Statements in this press release that are not historical are forward-
 looking statements, which are subject to risks and uncertainties that could
 cause actual results to differ materially, including whether conditions to
 closing of announced transactions are satisfied and whether the expected gains
 from the sale of assets realized.
 
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SOURCE International Paper
    PURCHASE, N.Y., April 26 /PRNewswire/ -- International Paper (NYSE:   IP)
 has reached a definitive agreement to sell its Chocolate Bayou Water Company,
 an IP subsidiary in the Houston, Texas, area, to the North Harris County
 Regional Water Authority in Southeast Texas for approximately $100 million,
 subject to certain adjustments at closing. The transaction is subject to
 normal closing conditions, including regulatory approval. The IP company holds
 water rights on the Brazos River and other smaller bayous near Houston.
     "We are delighted that these water assets can be can be put to beneficial
 use by both our current customers in Brazoria County, as well as the
 400,000 citizens in north Harris County," said James Montgaue, IP's general
 manager for Chocolate Bayou Water Company. "Since the Authority intends to
 continue operating the current business, we are optimistic the employees of
 Chocolate Bayou Water Company will have job opportunities with the purchaser.
 This transaction is a win-win for all involved."
     Today's agreement is part of International Paper's program to divest
 assets that no longer fit the company's long-term strategy in the wake of
 acquiring Champion International last year and the merger with Union Camp
 Corporation.
     "This agreement with North Harris County Regional Water Authority proves
 once again that we are committed to divesting assets that no longer fit our
 long-term strategy of focusing on paper, packaging and forest products," said
 John Faraci, IP's chief financial officer and executive vice president.
     International Paper (http://www.internationalpaper.com) is the world's
 largest paper and forest products company. Businesses include paper,
 packaging, and forest products. As one of the largest private forest
 landowners in the world, the company manages its forests under the principles
 of the Sustainable Forestry Initiative (SFIsm) program, a system that ensures
 the perpetual planting, growing and harvesting of trees while protecting
 wildlife, plants, soil, air and water quality.  Headquartered in the United
 States at Purchase, N.Y., International Paper has operations in nearly 50
 countries, employs more than 113,000 people and exports its products to more
 than 130 nations.
 
     Statements in this press release that are not historical are forward-
 looking statements, which are subject to risks and uncertainties that could
 cause actual results to differ materially, including whether conditions to
 closing of announced transactions are satisfied and whether the expected gains
 from the sale of assets realized.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X75725828
 
 SOURCE  International Paper