<b>GP Sees Big Loss</b>

Georgia-Pacific Group reported a net loss of $137 million for the first quarter, which includes a one-time, pre-tax charge of $82 million related to the closure of the Bellingham, Wash., pulp and lignin operation. A year ago, first quarter net income was $194 million .

The net loss before the one-time charge, extraordinary loss and accounting change was $84 million .

First quarter 2001 results were significantly impacted by continuing weak market conditions for wood products and higher energy costs, although the group's consumer products segment achieved encouraging operating results.

Sales for Georgia-Pacific Group in the first quarter 2001 were $6.3 billion compared with $5.5 billion in first quarter 2000. Debt for Georgia- Pacific Group at the end of the quarter was $14.8 billion compared with $15.2 billion at year-end 2000.

Georgia-Pacific's consumer products segment, which includes the former Fort James Corp. assets acquired late last year, recorded first quarter operating profits of $183 million, excluding the one-time charge for the Bellingham closure, versus $52 million a year ago. The consumer products segment is comprised of the company's consumer and away-from-home tissue businesses in North America and Europe and its Dixie(R) cups, plates and cutlery business.

The containerboard and packaging segment reported an operating profit of $88 million versus $131 million in first quarter 2000. The decline was attributable primarily to lower overall sales volume.

The bleached pulp and paperboard segment recorded operating profits of $57 million compared with $114 million during the same quarter last year due to lower demand and higher operating costs. The segment is comprised of the company's pulp, bleached board and communication papers businesses, as well as its Unisource paper distribution business which previously was reported separately as the paper distribution segment.

Weak demand and lower prices resulted in an operating loss of $24 million in first quarter 2001 for the building products segment compared with an operating profit of $206 million in first quarter 2000. This segment includes the company's building products manufacturing and distribution operations.