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Georgia-Pacific Plans to Install 2 Tissue Machines, Increase Tissue Capacity by 180,000 tpy

May 16, 2006 - Georgia-Pacific Corp. today announced that it intends to make significant, strategic investments to further strengthen the company's commitment to being the leading supplier of premium paper towel and bath tissue products.

As the next steps in its long-term investment strategy, the company said it is currently in planning stages to install two tissue paper machines using through-air-dried (TAD) technology. The two machines would increase the company's production of premium products by some 180,000 tons per year. The company's premium brands include Brawny® paper towels and Quilted Northern® bath tissue.

The first installation, with startup scheduled for 2007, will be located at one of the company's existing mill locations to service customer and consumer needs in the western United States. The second machine will be strategically located the following year at one of the company's mills to serve the southern and southeastern U.S. Installation of related converting equipment also will be part of the planned upgrades. Total cost for installation of the machines and converting equipment is not being released.

"These investments should be a clear indication to our customers and consumers of Georgia-Pacific's commitment to our growing consumer products business," said Joe Moeller, president and chief executive officer of Georgia- Pacific.

"The two TAD machines are the next logical step in adding capacity to satisfy premium tissue demand," Moeller said. "Additional investments to upgrade and expand capacity, including machines using a Georgia-Pacific proprietary drying technology, will be made to sustain our leadership in the private label and premium tissue market."

Added Mike Burandt, executive vice president - North American consumer products, "Most importantly, the planned machines will enable us to adequately serve the needs of our strategic customers, as well as consumers of fast- growing consumer preferred brands manufactured by Georgia-Pacific. At the same time, Georgia-Pacific plans to increase its focus on product and manufacturing innovation for the middle and high end of the market. We intend to strengthen our leadership position to deliver the quality products the market requires at the lowest delivered cost."

SOURCE: Georgia-Pacific Corp.




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