<B>Gaylord Reports Loss</B>

Gaylord Container Corp. reported a loss of $3.4 million for the second quarter of fiscal 2000. This compares to a net loss of $19.3 million in the second quarter of fiscal 1999.

Net sales increased to $291.2 million in the second quarter of fiscal 2000, compared to $201.0 million in the year-earlier period. Included in the second quarter of fiscal 2000 is the effect of S&G Packaging which was acquired during the first quarter of fiscal 2000. The company reported operating income of $17.2 million in the second quarter of fiscal 2000 compared to an operating loss of $9.5 million in the year-ago second quarter.

Commenting on the second fiscal quarter, Gaylord's Chairman and Chief Executive Officer Marvin A. Pomerantz said, "Higher average selling prices and increased mill and corrugated converting volumes were primary contributors to the company's improved performance compared to the same quarter last year. Increased recovered fiber costs partially offset these improvements."

Looking ahead, Pomerantz remarked, "The near-term outlook for US containerboard markets remains exceptionally favorable. The previously announced $50 per ton linerboard increase is in place and we are completing the implementation of the related increase in the price of our corrugated products. In addition, Gaylord has announced a $50 per ton increase in the price of unbleached kraft paper and a related retail bag price increase.

We remain confident that the currently favorable supply/demand balance and the historically low rate of projected supply additions will support an extended recovery for the brown paper packaging industry."