MEMPHIS, Tenn., Aug. 14 -- International Paper today announced that it has updated the historical financial statements included in its 2005 annual report to reflect events occurring in the first and second quarter of 2006 in connection with the company's ongoing transformation plan. The company has filed with the Securities and Exchange Commission a Report on Form 8-K to update the historical financial statements included in International Paper Company's Annual Report on Form 10-K for the year ended Dec. 31, 2005, as amended by Form 10-K/A, to reflect the treatment of the company's Kraft Papers business as a discontinued operation, and the reclassification of the assets and liabilities of both the Kraft Papers and the Coated and Supercalendered Papers businesses as held for sale. The company announced on June 26 a definitive agreement to sell the Kraft Papers business, and is expecting to complete that transaction in the third quarter of 2006. On June 5, the company also announced a definitive agreement to sell its Coated Papers business, and that sale was completed on Aug. 1. Today's Form 8-K filing will permit the company to incorporate by reference these financial statements in subsequent filings with the SEC. About International Paper's Transformation Plan Today's announcement is part of the transformation plan International Paper announced in July 2005 to strengthen the company by: * focusing on two global platform businesses (uncoated papers and packaging, along with xpedx, its merchant distribution business) and improving profitability of those key businesses; * exploring strategic options, including possible sale or spin-off, for certain assets or businesses; and * using proceeds from divestitures to return value to shareowners, strengthen the company's balance sheet, and selectively reinvest in its key platform businesses. Details about the transformation plan, and more specific information concerning the progress of the divestitures is contained in the company's Securities and Exchange Commission filings.