Greif, Inc. Commences Offer to Purchase and Consent Solicitation

Delaware, Ohio, USA, 11 January 2007 -- /PRNewswire/ -- Greif, Inc. (NYSE:GEF) (NYSE:GEF.B) a global leader in industrial packaging, today announced that it is commencing an offer to purchase and consent solicitation for any and all of its outstanding 8-7/8% Senior Subordinated Notes due 2012. The aggregate principal amount of notes currently outstanding is approximately USD 242.6 million.

The offer to purchase will expire at midnight, Eastern Standard Time (EST), on 08 February 2007, unless extended. The consent solicitation will expire at 5 p.m. EST on 25 January, unless extended.

Holders tendering their notes will be deemed to have delivered their consent to certain proposed amendments to the notes and the indenture governing the notes, which will eliminate, among other things, substantially all of the restrictive covenants and certain events of default in the indenture.

The purchase price for each USD 1000 principal amount of notes tendered and not validly withdrawn on or before the expiration date of the offer to purchase will be USD 1028.36 plus unpaid interest on the principal amount of the notes accruing to, but not including, the payment date.

In addition to the purchase price, Greif will make a consent payment of USD 30.00 for each USD 1000 principal amount of notes for which consents have been delivered and not validly withdrawn on or before the expiration date of the consent solicitation. Holders who validly tender their notes after the expiration date of the consent solicitation will receive the purchase price for the notes, but not the consent payment.

The terms of the offer to purchase and consent solicitation, including the conditions to Greif's obligations to accept tendered notes and consents delivered and to pay the purchase price and consent payments, are set forth in Greif's offer to purchase and consent solicitation statement, dated 11 January 2007. The conditions include a majority of the aggregate principal amount of notes outstanding being tendered on or before the consent date, a refinancing condition, and the execution of a supplemental indenture on or before the acceptance date implementing the proposed amendments.

Deutsche Bank Securities Inc. is the dealer manager for the offer to purchase and the solicitation agent for the consent solicitation. Questions or requests for assistance and documentation may be directed to Deutsche Bank Securities Inc., 60 Wall Street, New York, NY 10005, Attn: Christopher White at (212) 250-6008, or to the information agent for the offer to purchase and consent solicitation, MacKenzie Partners, Inc., 105 Madison Avenue, New York, NY 10016, at (800) 322-2885 or (212) 929-5500 (call collect), or to proxy@mackenziepartners.com.

About Greif

Greif is the world leader in industrial packaging products and services. The company produces steel, plastic, fiber, corrugated and multiwall containers, protective packaging, and containerboard, and provides blending and packaging services for a wide range of industries. Greif also manages timber properties in North America. The company has offices in more than 40 countries. Additional information is on the company's Web site at www.greif.com.

Source: Greif, Inc.