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Georgia-Pacific Selling Six Particleboard Mills

Sept. 25, 2006 (Press Release) - Georgia-Pacific Corp. and Roseburg Forest Products Co. today announced that they have reached an agreement on the sale of six Georgia-Pacific industrial wood products mills to Roseburg. The mills are located at Eupora, Louisville, Oxford and Taylorsville, Mississippi; Russellville, South Carolina; and Vienna, Georgia.

"Our analysis placed a very high value on this solidly performing business," said Mike Rehwinkel, Georgia-Pacific's president - wood products. "However, its strategic fit and potential synergies with Roseburg's existing business made it even more valuable to them."

The acquisition, scheduled to be complete by Dec. 1, will make Roseburg one of the largest manufacturers of particleboard products in the U.S.

"Roseburg Forest Products has a strategy to grow our company; composite panels are a core area of growth for us," said Allyn Ford, owner and president. "Acquiring GP's particleboard, melamine and cut-up facilities gives us a better ability to meet our customers' needs for growth throughout the country."

The mills make particleboard and, in the case of Oxford and Eupora, related products such as thermally fused melamine and cut-to-size panels. Customers include furniture and cabinet manufacturers, panel laminators, mobile home manufacturers and retail home centers. A smooth transition is envisioned between Georgia-Pacific and Roseburg to ensure that customers receive uninterrupted service.

Approximately 750 employees work at the six mills. Roseburg plans to hire the vast majority of the existing workforce. The sale will not include any other Georgia-Pacific businesses at complexes where some of these particleboard facilities are located.

Another selling point for Roseburg was the excellent condition of the facilities. According to Ford, "It is obvious that these plants are well managed, operated and cared-for by a highly skilled workforce and sales group. We look forward to them joining our team."

Roseburg Forest Products Co., based in Roseburg, Ore., is a family-owned manufacturer of lumber, particleboard, softwood plywood, engineered wood products and specialty panels. It has land and facilities in California, Montana and Oregon. The company was established in 1936 by the Ford family.

SOURCE: Georgia-Pacific Corp.




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