May 2006

 

Forestland to sell for $137 million

International Paper has signed a definitive agreement with The Lyme Timber Company for the benefit of the Lyme Forest Fund L.P. to sell approximately 275,000 acres of forestland in New York’s Adirondack Park for approximately $137 million. The sale of forestlands is part of International Paper’s previously announced transformation plan to focus on uncoated papers and industrial and consumer packaging globally. The Lyme Timber Company is a New Hampshire Limited Partnership organized in 1976 to invest in forestland and rural real estate for its own account and in partnership with other investors.

This agreement substantially completes International Paper’s sales of its United States forestlands identified as part of the company’s transformation plan.

Anticipated proceeds from this and other recently announced sale agreements, totaling about 5.7 million acres, are approximately $6.6 billion. International Paper is retaining approximately 830,000 acres, some of which may be later sold to maximize the value of the land.

Lyme Timber will continue to provide wood fiber to International Paper’s Ticonderoga, New York paper mill for 20 years. The forestlands will continue to be sustainably managed and third-party certified under the requirements of the Sustainable Forestry Initiative® Standard.

In conjunction with the sale agreement, Lyme Timber will assume a 257,000-acre conservation easement agreement IP negotiated with the State of New York and The Conservation Fund in 2004. The first phase of the easement, comprising about 40,000 acres, closed late last year. The remaining phases of the easement are expected to close throughout 2006 as funds become available.

 


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