<b>Westvaco Sees Drop in Quarterly Figures</B>

Westvaco Corp. reported a steep drop in first quarter earnings. The company attributed the drop to a slowing U.S. economy, as well as lower demand for coated papers and bleached paperboard.

The company also cited slowing demand from magazines, advertising catalog and label papers weakened.

While demand was strong in the first quarter for bleached paperboard used in media packaging applications, other markets declined, most notably food packaging and food service items. Higher energy costs also contributed to the decline in earnings.

Revenues for the first quarter total $926.1 million compared to $799.6 million during the same period a year ago.

Operating profit for Westvaco's packaging segment totaled $59.5 million, down from $63.3 million in the first quarter of fiscal 2000. Segment revenues totaled $589.5 compared to $424.9 million in the first quarter of 2000, reflecting the inclusion of acquisitions during fiscal 2000.

For the paper segment, first quarter operating profit was $15.5 million, compared to $33.0 million in the first quarter of 2000. Revenues totaled $252.2 million compared to $294.8 million, reflecting lower sales of coated papers for commercial printing and label applications and competition from imported coated paper, which increased due to currency effects.