<B>PCA Selling Timberlands</B>

Packaging Corporation of America expects to receive from the sale about $250 million in cash and a one-third equity ownership interest in Southern Timber Ventures, LLC.

``This sale will accomplish three important objectives for PCA,'' said Paul Stecko, chairman and CEO of PCA. ``First, it will provide us with approximately $250 million in cash, which we plan to use to pay down debt and help meet our goal of reducing our initial debt by $1.2 billion by the end of 2001. Second, the sale will provide us with a long term fiber supply agreement for our Counce, Tenn., mill. Finally, as a result of our equity interest in Southern Timber Ventures, PCA will retain a portion of the potential long term appreciation of these timberland assets.''