<B>Quarterly Reports Continue to Point to Upbeat Second Half</B>

Smurfit-Stone Container Corp. reported income from continuing operations of $40 million in the first quarter. This includes the impact of restructuring charges resulting from plant closures. The first quarter profit compares to a net loss of $92 million from continuing operations in the first quarter of 1999. Sales for the quarter were $1.9 billion, compared to $1.7 billion in the first quarter of 1999.

Commenting on the first quarter results, Ray Curran, president and CEO, said, ``The significant improvement in our bottom line compared to the first quarter of 1999 reflects the substantial progress we have made over the past year. This includes repayment of $1.6 billion in debt, a $32 million reduction in quarterly interest expense, efficiency improvements in our mill system, and the achievement of $350 million in annualized synergies since the merger date. In addition, we are benefiting from the improved market climate.

``We successfully implemented a $50 per ton linerboard increase during the quarter,'' he said. In addition, the company experienced steady demand growth for corrugated containers, folding cartons and industrial bags, especially toward the end of the quarter. Despite the continued improvement in the packaging markets, he noted that operating profits were down slightly from the levels of the fourth quarter of 1999. This was the result of higher costs for recycled fiber, a major raw material, and the impact of higher containerboard costs, without the offsetting improvement in container prices. The company also took downtime at its containerboard mills to adjust inventories and reduce working capital.

Smurfit-Stone's debt increased $98 million during the quarter to $4.9 billion. This was the result of a temporary increase in working capital resulting from the previously mentioned price increase, and the $123 million payment to successfully resolve the bankruptcy reorganization plan of Florida Coast Paper, a joint venture of Stone Container and Four M Corporation. Smurfit-Stone now owns the 500,000-ton per year linerboard mill, which will remain shut.

``Debt reduction remains an ongoing priority for the company as it continues to divest non-strategic assets,'' Curran said. Following the end of the quarter, the company agreed to sell its Port Wentworth, GA, pulp facility for $63 million, the net cash proceeds of which will go toward debt reduction. The company is close to finalizing the transfer of its remaining newsprint mill in Oregon City to a group of investors, management and mill employees.

During the first quarter, Smurfit-Stone also signed an agreement to purchase St. Laurent Paperboard Inc., for approximately $625 million in cash and 25 million shares of Smurfit-Stone common stock. ``This transaction is an excellent fit which allows us to expand our packaging capabilities in specialty containerboard,'' Curran said. ``Pending an approval by St. Laurent shareholders on May 26, we expect to close this transaction later in this second quarter.''

Curran concluded, ``Demand for recycled fiber continues to be strong, particularly in the export market. As a consequence, we expect prices to remain firm. We also expect continued improvement in prices in containers, folding cartons and other packaging products. In addition, with most of the strategic restructuring of the first year behind us, and the expected completion of the St. Laurent transaction, we can intensify our focus on delivering greater value to our packaging customers and improving our operating performance.''

Caraustar Industries, Inc. announced that revenues for the first quarter ended March 31, 2000, were $248.6 million, an increase of 32.5 percent over revenues of $187.6 million for the same quarter of 1999. During the quarter, Caraustar took a pretax restructuring charge of $6.9 million related to the permanent shutdown of its Chesapeake paperboard mill in Baltimore. Net income including the restructuring charge was $2.1 million, a decrease of 81.2 percent from first quarter 1999 net income of $11.4 million.

The company's total unit volume of paperboard shipments in the first quarter of 2000 increased by 23.2 percent to 302,000 tons compared to the first quarter of 1999. Including acquisitions, mill volume increased by 18.3 percent to 270,000 tons, while converted products volume increased 31.9 percent to 132,000 tons. Excluding acquisitions, total volume in the first quarter of 2000 increased 2.1 percent to 250 thousand tons, with mill volume down 0.7 percent to 227 thousand tons, while converted products volume rose 7.2 percent to 107 thousand tons compared to the first quarter of 1999. Compared to the fourth quarter of 1999, mill volume decreased by 3 thousand tons and converted products volume rose by 15 thousand tons in the first quarter of 2000.

Average selling prices increased by $40 per ton compared to the first quarter of 1999, but decreased $4 per ton compared to the fourth quarter of 1999. Average selling prices for tubes and cores increased by $52 per ton in the first quarter of 2000 compared to the first quarter of 1999, but decreased $2 per ton compared to the fourth quarter of 1999.

Mill recovered fiber costs rose by $41 per ton in the first quarter of 2000 compared to the first quarter of 1999 and increased by $7 per ton compared to the fourth quarter of 1999. Tube and core paper costs in the first quarter of 2000 rose by $38 and $6 per ton compared to the first and fourth quarters of 1999, respectively.

Thomas V. Brown, president and chief executive officer of Caraustar, commented, ``As stated in our March 20, 2000 press release, we expected net income for the first quarter would be approximately 10 cents to 12 cents per share short of the 1999 fourth quarter earnings, excluding the charge for the Chesapeake mill shutdown. The drop in mill margins due to the increase in recovered fiber costs and the effect of additional downtime at the Sprague mill did, in fact, reduce earnings as projected.'' Looking at the next few quarters, Brown added that, ``product price increases implemented during the current quarter are expected to recover margins at both the mills and converting operations. We further expect recovered fiber costs will remain stable for the next several months. Our rebuild of the stock prep system at the Sprague mill, starting up this month, and pricing improvements there should begin the anticipated recovery process at this important facility. We also expect a substantial gain in the earnings contribution from the new wallboard joint venture, which just completed its first profitable quarter.''

Bowater Incorporated reported financial results for the first quarter. Net income for the first quarter was $17.2 million on net sales of $520.5 million. This compares with net income of $19.2 million before non-operating items, on net sales of $571.3 million in the first quarter of 1999.

Bowater's financial results improved substantially compared with the fourth quarter of 1999, due to rising prices in all of the company's major product lines, as well as lower production costs. In the fourth quarter, the company had net income of $9.3 million, or $.18 per diluted share, before non-operating items, on net sales of $525.0 million.

During the first quarter, the company implemented price increases for pulp and obtained higher prices in export markets for newsprint. Coated paper prices also increased during the first quarter. On April 1, Bowater implemented further price increases as follows: $50 per metric ton for newsprint, $40 per metric ton for market pulp and $60 per short ton for coated groundwood paper.