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International Paper To Sell Fine Papers Business to Mohawk

Press release from the issuing company

STAMFORD, Conn., March 31 -- International Paper announced it has signed an agreement to sell its Fine Papers business to Mohawk Paper Mills Inc., of Cohoes, N.Y. The company anticipates cash proceeds from the transaction will total approximately $65 million. The company announced in December 2004 that it had signed a non-binding letter of intent to sell the business to Mohawk as part of its strategy to improve profitability and focus on core businesses. With a definitive sale agreement now in place, the companies expect to close the transaction early in the second quarter of 2005, subject to various closing conditions. The Fine Papers Business includes the writing, text and cover papers and artist papers segments. Included in the sale are the Hamilton, Ohio, paper mill, with an annual production capacity of approximately 65,000 tons; the Saybrook, Ohio, converting center; and the Westfield, Mass., artist papers converting operation. The business employs approximately 500 people. The sale will also include the Strathmore, Brite Hue, Via and Beckett brands.