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The company used available cash on hand to pay off the remaining loan balance of approximately $170 million. Including the repayment of approximately $365 million of notes in January 2009, International Paper has repaid $535 million of debt year to date.

The company has $530 million of remaining debt maturities in 2009, of which it plans to repay $195 million with cash on hand and extend the maturity date on the balance of $335 million as follows:

    1)  The company plans to exercise its option to extend the maturity
        dates on $165 million of notes associated with timber monetization
        transactions and refinance approximately $55 million of other debt.

    2)  The company's 50%-owned Sun joint venture in China plans to
        refinance $115 million of local bank debt with existing lenders.

At the end of February, International Paper had about $900 million in cash on hand and had no borrowings on either its revolving credit facility or accounts receivable securitization facility.

"We are pleased to complete this transaction in a very challenging credit environment," said Chairman and CEO John Faraci. "We remain committed to reducing our debt and maintaining a solid liquidity position."

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 61,500 people in more than 20 countries and serves customers worldwide. 2008 net sales were approximately $25 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

This press release contains 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 relate to business and credit market conditions which could prevent the Company and its joint venture from refinancing all $335 million of remaining 2009 maturities that it currently plans to extend, which could require additional cash payments to meet the 2009 maturities. These and 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 Company

http://www.internationalpaper.com