Buckeye Announces USD 20 Million Redemption of Notes

Memphis, Tennessee, USA, 28 August 2007 --(BUSINESS WIRE)-- Buckeye Technologies Inc. (NYSE:BKI) today announced that it has called for redemption prior to their maturity USD 20 million in aggregate principal amount of its outstanding 8.0% Senior Subordinated Notes due 2010 (the "2010 Notes") and will redeem them on 24 September 2007, in accordance with their terms.

Upon completion of this redemption, USD 130 million of the 2010 Notes will remain outstanding. A formal notice of redemption has been sent separately to the affected holders of the 2010 Notes, in accordance with the terms of the indenture for the 2010 Notes. Buckeye plans to finance this redemption using its USD 200 million senior secured revolving credit facility which was put in place 25 July 2007.

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.