ALBANY, Ore., Oct. 1 /PRNewswire-FirstCall/ -- Today, International Paper (NYSE: IP) announced plans to shut down its No. 2 paper machine at the Albany Mill in Oregon as of Oct. 5, for a minimum of three months. This machine produces approximately 250,000 tons annually of containerboard, used to make corrugated packaging. Approximately 40 people's jobs will be impacted by the shutdown.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020701/IPLOGO )

"We don't underestimate the impact that this has on the employees who will be laid off as a result of this decision, and we're committed to working closely with the union and local agencies to provide outplacement benefits and other assistance," said Glenn Landau, vice president and general manager of IP's Containerboard & Recycling business. "This is a necessary near-term decision made in light of continuing high input costs, current economic conditions and our commitment to match our production to our customers' needs."

Landau said the company will continue to monitor economic conditions as they evolve and will revisit the operating status of the machine early in 2009.

Mill leaders will meet with the union to discuss severance, medical and other benefits for affected employees.

Prior to the shutdown of Albany No. 2, International Paper's North American containerboard production is about 11 million tons per year.

About International Paper

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs more than 65,000 people in more than 20 countries and serves customers worldwide. 2007 net sales were approximately $22 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include delays in the process of shutting the machine down and changes in economic conditions which may require an adjustment to the number of months the machine is shut down. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

SOURCE International Paper