THOMAS F. GIDEON
Senior Vice President, Containerboard, Packaging and Recycling

SITUATION SNAPSHOT

• U.S. containerboard and box markets expect to experience flat to modest growth in 2008.
• Export containerboard markets are growing and expect to benefit from the weaker dollar.
• China’s rapid expansion in recycled containerboard has created demand pressures on the global supply of recovered fiber.
• Packaging customers continue to respond to pressure from retailers for lower prices by executing supply chain initiatives and cost-reduction programs.

OPERATING STRATEGY

Until the sale of this segment to International Paper closes, we will continue to:

• Provide value and reliability for customers through our state-of-the-art technology, quality processes and plant system in the United States and Mexico.
• Develop and produce innovative, cost-effective solutions to meet our customers’ needs for packaging that both protect their products and communicate to the people who buy these products.
• Deliver products and services to selected customer segments where we can meet or exceed our performance goals.
• Reduce supply chain costs and improve productivity by organizing our plants in supply zones.
• Help customers and retailers meet waste reduction and recycling goals by developing material recovery programs using our recycling collection and distribution system.