<B>Temple-Inland Paper Group Reports Upbeat Numbers</B>

Temple-Inland Inc. reported income of $204 million, before a third quarter after-tax special charge of $9 million. This compares with 1999 income from continuing operations of $191 million. Revenues for 2000 were $4.3 billion, compared with revenues from continuing operations of $3.8 billion in 1999.

Fourth quarter income was $35 million, compared with fourth quarter 1999 income from continuing operations of $57 million.

The paper group reported operating income of $205 million for 2000, almost double 1999's $103 million. Operating income for the paper group in fourth quarter 2000 was $41 million, compared with $42 million in fourth quarter 1999.

The improvement in the paper group's earnings in 2000 was primarily driven by higher prices for corrugated containers. Average prices for corrugated containers in 2000 were 17% higher than average 1999 prices, and fourth quarter 2000 prices were up 13% compared with fourth quarter 1999 levels.

Earnings for the paper group, however, were negatively affected by a decline in volume, downtime and higher costs for OCC and energy. Shipments of corrugated containers in 2000 were down approximately 3% compared with 1999 levels. Fourth quarter 2000 shipments were 3% lower than fourth quarter 1999 levels. Containerboard production was curtailed by approximately 315,000 tons in 2000 due to market, maintenance and operational factors, including 135,000 tons in the fourth quarter. At year- end, containerboard inventories were more than 60,000 tons lower than the same period last year as the company continues to balance its supply with demand of its customers.

The average cost of OCC was 20% higher in 2000 compared with 1999, but 26% lower in fourth quarter 2000 versus fourth quarter 1999. Energy costs, particularly natural gas, rose during the year and were approximately $10 million higher in 2000 compared with 1999.