<B>G-P Reports Quarterly Loss</B>

Georgia-Pacific Group reported a net loss of $187 million for the three months ended Dec. 30, compared with net income of $175 million for fourth quarter 1999. Fourth quarter results were negatively impacted by one-time unusual charges and poor market conditions that necessitated production downtime across the company's businesses.

G-P's net income for the full year was $343 million versus net income of $716 million a year ago.

Within Georgia-Pacific Group's pulp and paper businesses, the containerboard and packaging segment reported operating profits of $99 million for the fourth quarter 2000 versus fourth quarter 1999 operating profits of $130 million.

The group's consumer products segment, consisting of its retail and away-from-home tissue businesses previously included in the group's former pulp and paper segment, recorded an operating profit of $64 million, excluding a pre-tax loss of $204 million for the write-down of assets of the Georgia-Pacific Tissue away-from-home tissue business that will be sold during first quarter 2001. This compares with an operating profit of $57 million in the same period of 1999.

The group's bleached pulp and paper segment reported operating profits of $111 million, excluding a pre-tax loss of $57 million relating to the closure of the Kalamazoo paper mill. This compares with $102 million in the same quarter of 1999. The segment now is comprised of the company's pulp, bleached board and communication papers businesses, and its Unisource paper distribution business, which previously was reported separately as the paper distribution segment.

``Despite our efforts to match production with demand during the fourth quarter, we were unable to overcome the effects of the slowing U.S. economy and higher energy costs as well as overwhelming declines in building products prices,'' said A.D. Correll, chairman and CEO. ``Late in the fourth quarter, we began to experience weak market conditions that could persist for the next several months.''

For the full year G-P's containerboard and packaging segment reported operating profits of $512 million compared with operating profits of $324 million in 1999. The consumer products segment's full-year operating profit was $233 million, before one-time charges, compared with $170 million a year earlier. The bleached pulp and paper segment recorded full-year operating profits in 2000 of $525 million, before one-time charges, versus $145 million in 1999.

For the full year, the building products segment recorded an operating profit of $377 million in 2000 compared with operating profits of $1.2 billion in 1999.