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CARAUSTAR INDUSTRIES, INC.
DIVERSIFIED -- PACKAGING -- SOLUTIONS
[LOGO]
FOR IMMEDIATE RELEASE
MAY 10, 1999
CONTACT: X. Xxx Xxxxxx, III
Chief Financial Officer
(000) 000-0000
CARAUSTAR, TEMPLE-INLAND ANNOUNCE AGREEMENT
ON JOINT VENTURE
ATLANTA, Georgia - Caraustar Industries, Inc. (NASDAQ-NMS Symbol: CSAR) and
Temple-Inland Inc., have agreed to form a new company, Premier Boxboard Limited
(PBL) LLC, to own and operate Temple-Inland's containerboard mill in Newport,
Indiana. The mill is currently operated by Inland Paperboard and Packaging,
Inc. (Inland), a wholly owned subsidiary of Temple-Inland Inc. The agreement
follows completion of a four-month joint engineering study to determine the
feasibility of converting the Newport mill to production of a new, lightweight
gypsum facing paper.
Beginning immediately, Temple-Inland and Caraustar will undertake a 14-month,
$70 million project to modify the mill to produce the new gypsum paper. The
mill also will maintain its current production capabilities for corrugating
medium and linerboard.
In finalizing the agreement, Xxxxxx X. Xxxxx, president and chief executive
officer, said, "The marriage between Caraustar and Temple-Inland Inc. in
rebuilding the Newport mill, using the latest in multi-ply Fourdrinier
technology, creates a premier product for the wallboard industry in a most
timely and cost effective way. We look forward to a long and very successful
relationship with Temple-Inland."
Inland chairman and CEO, Xxxxxxx X. Xxxxx, said, "The new venture will fit well
with Temple-Inland's strategy to balance mill assets by lowering its
containerboard capacity, thereby increasing its level of integration. Further,"
Xxxxx added, "this project diversifies our product line, an important step in
improving our return on investment."
Caraustar will manage the new company and market the gypsum facing paper and
other non-containerboard products. Inland will continue to market
containerboard produced at Newport.
Under the agreement, Premier Boxboard will retain the current Inland employees
at the Newport mill. Other terms of the agreement were not disclosed.
This press release may contain certain "forward-looking statements," within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of
Phone 770 - 948 - 3101 -- P. O. Box 115 -- Austell, GA 00000
0000 Xxxxxxxxxx Xxxxxx -- Xxxxxxx, XX 00000
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1934, that represent the company's expectations, anticipations or beliefs. For
this purpose, any statements that are not statements of historical fact may be
deemed to be forward-looking statements. These statements involve risks and
uncertainties that could cause actual results to differ materially depending on
a variety of important factors, including, but not limited to, fluctuations in
raw material prices and the economy in general, the degree and nature of
competition, demand for the company's products, changes in government
regulations and the company's ability to complete acquisitions and successfully
integrate the operations of acquired businesses. Additional relevant risk
factors that could cause actual results to differ materially are discussed in
the company's registration statements and reports filed with the Securities and
Exchange Commission, which are available from the company. These documents also
may be examined at public reference facilities maintained by the Securities and
Exchange Commission or, to the extent filed via XXXXX, accessed through the Web
Site of the Securities and Exchange Commission (xxxx://xxx.xxx.xxx).
Temple-Inland Inc., based in Diboll, Texas, is a major manufacturer of paper,
corrugated packaging and building products, with financial services operations
in mortgage and consumer banking. Its common stock is traded on the New York
and Pacific Exchanges under the symbol TIN.
Caraustar Industries, Inc., a packaging company, is one of the largest and
lowest-cost manufacturers and converters of recycled paperboard and packaging
products. The company has maintained its industry low-cost status through
diversification and integration from raw materials to finished products.
Caraustar is the only major producer of recycled boxboard products that serves
all four of the principal markets: tubes, cores and cans; folding cartons;
gypsum wallboard facing paper; and miscellaneous "other specialty" and
converted products. Caraustar currently has 93 operations located in the United
States, Canada, Mexico and the United Kingdom.
More information about Caraustar is available at xxxx://xxx.xxxxxxxxx.xxx - our
new web site on the Internet.
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