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Georgia-Pacific and Willamette Discuss Formal Business Combination

Press release from the issuing company

ATLANTA, Dec. 10 -- Georgia-Pacific reports that its board of directors has approved discussions to begin with Willamette Industries, which has made a proposal to negotiate with Georgia-Pacific for a potential business combination involving the building products businesses of both companies. "Consistent with our transformation direction, Georgia-Pacific has been taking strategic steps to become a more brand-oriented, value-added company with higher returns and growth potential,'' said A.D. "Pete'' Correll, chairman and chief executive officer. "As part of that direction, we have been investigating strategic alternatives that will now include a potential combination of our building products assets with those of Willamette.'' Correll said Georgia-Pacific had been evaluating several different strategic options, including a plan for a possible separation of the company into two entities, when it was approached by Willamette's leadership about the potential of combining the building products businesses of both companies. "The concept is significant enough that we must consider it in the context of other options available to us,'' Correll said. The Georgia-Pacific building products businesses involved in these negotiations, which will begin immediately, include structural panels, industrial wood products, gypsum, lumber, chemicals and building products distribution "The final outcome of these discussions cannot be foreseen at this time nor can a timetable for their completion,'' Correll said. "Ultimately, we will choose the path that we believe adds the most potential value for our shareholders.''