Memphis, Tenn. – International Paper Company (the "Company") announced today certain pricing terms for its previously announced cash tender offer (the "Waterfall Tender Offer") for up to $700 million combined aggregate principal amount, less the aggregate principal amount of its outstanding 3.000% Notes due 2027 purchased in a separate offer (the "Waterfall Tender Cap"), of its outstanding 3.650% Notes due 2024 (the "3.650% Notes") and 3.800% Notes due 2026 (the "3.800% Notes" and, together with the 3.650% Notes, the "Notes").

The Reference Yield was determined by the Lead Dealer Managers, based on the bid-side price of the Reference U.S. Treasury Security as of 10:00 a.m., New York City time, on September 22, 2020. Holders whose Notes are accepted for purchase pursuant to the Waterfall Tender Offer will also receive accrued and unpaid interest on such Notes from the last interest payment date for such Notes to, but excluding, the applicable settlement date for the Waterfall Tender Offer.

Holders of Notes that were validly tendered and not validly withdrawn at or before 5:00 p.m., New York City time, on September 21, 2020 (the "Early Tender Deadline") and whose Notes are accepted for purchase will receive the applicable Total Consideration (as defined in the Offer to Purchase), which is based on the Reference Yield plus the Fixed Spread as set forth in the table above, for such Notes. Because the aggregate principal amount of Notes validly tendered and not validly withdrawn at or before the Early Tender Deadline and accepted for purchase exceeded the Waterfall Tender Cap, no more Notes will be accepted in the Waterfall Tender Offer, regardless of Acceptance Priority Level.

The withdrawal rights for the Waterfall Tender Offer expired at 5:00 p.m., New York City time, on September 21, 2020; therefore, previously tendered 3.650% Notes or 3.800% Notes may no longer be withdrawn.

The Waterfall Tender Offer is subject to the satisfaction or waiver of certain conditions set forth in the Offer to Purchase, dated September 8, 2020 (the "Offer to Purchase").

The Company has retained BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc. to serve as Lead Dealer Managers for the Waterfall Tender Offer. The Company has also retained Global Bondholder Services Corporation to serve as depositary and information agent for the Waterfall Tender Offer.

Requests for documents relating to the Waterfall Tender Offer may be directed to Global Bondholder Services Corporation by telephone at (866) 794-2200 or (212) 430-3774, in writing at 65 Broadway, Suite 404, New York, New York 10006 or online at https://www.gbsc-usa.com/ip/. Questions regarding the Waterfall Tender Offer may be directed to BNP Paribas Securities Corp. at (888) 210-4358 (toll-free), (212) 841-3059 (collect), or [email protected] or Credit Agricole Securities (USA) Inc. at (866) 807-6030 (toll-free) or (212) 261-7802 (collect).

This press release is not a tender offer to purchase or a solicitation of acceptance of a tender offer, which may be made only pursuant to the terms of the Offer to Purchase. In any jurisdiction where the laws require the Waterfall Tender Offer to be made by a licensed broker or dealer, the Waterfall Tender Offer will be deemed made on behalf of the Company by the dealer managers or one or more registered brokers or dealers under the laws of such jurisdiction.

None of the Company, its board of directors, the depositary, the information agent, any of the dealer managers or the trustee for the Notes is making any recommendation as to whether holders should tender Notes in response to the Waterfall Tender Offer. Holders must make their own decisions as to whether to tender Notes, and, if so, the principal amount of Notes to tender.