<b>G-P Completes Sale of Mills to SCA</B>

Georgia-Pacific Corp. completed the previously announced sale to Svenska Cellulosa Aktiebolaget SCA of commercial tissue manufacturing operations that were part of a joint venture with Chesapeake Corporation known as Georgia-Pacific Tissue LLC.

Proceeds from the transaction will be used by Georgia-Pacific to repay debt. The sales price of approximately $852 million will result in after-tax proceeds to Georgia-Pacific of $661 million, following required payments to Chesapeake of $237 million to satisfy its deferred tax obligations and payment of its equity interest in the joint venture.

The operations sold to SCA include approximately 368,000 tons of tissue manufacturing capacity and associated converting facilities, and sales and marketing functions.

Georgia-Pacific retains all commercial tissue facilities acquired in the Fort James transaction. Georgia-Pacific now operates approximately 940,000 tons of commercial tissue manufacturing capacity and associated converting facilities. The company also will retain its proprietary commercial tissue dispensing systems and a commercial tissue facility in Mexico.

The facilities sold are located at Alsip, Ill.; Bellemont and Flagstaff, Ariz.; Brattleboro, Vt.; Greenwich, N.Y.; Gary, Ind.; LaGrange, Ga.; and Menasha and Neenah, Wis., and they employ approximately 2,200 people.