International Paper

Memphis, Tennessee, USA, 11 May 2009 -- /PRNewswire/ -- International Paper (NYSE: IP) has commenced a cash tender offer to purchase any and all of the series of its outstanding bonds described below. The terms and conditions of the tender offer are described in International Paper's offer to purchase dated 11 May 2009. The aggregate principal amount outstanding of the bonds subject to the tender offer is USD 1,068,465,000 (excluding accrued interest, fees and expenses) as of 01 May 2009. International Paper expects to purchase the bonds using the net cash proceeds from its recent issuance of 9.375% notes due 2019 and other available cash resources.

International Paper's offer is for any and all of the outstanding bonds identified in the following table. The tender offer will expire at 5 p.m., Eastern Time, on 19 May 2009, unless extended. Holders of bonds subject to the tender offer must validly tender and not validly withdraw their bonds on or before this date to receive the applicable purchase price for bonds accepted for purchase pursuant to the offer.

The applicable purchase price for each USD 1000 in principal amount of bonds tendered and accepted for payment pursuant to the tender offer is set forth in the following table. In addition to the applicable purchase price, accrued and unpaid interest up to, but not including, the settlement date, will be paid in cash on all validly tendered bonds accepted for purchase in the tender offer. The settlement date for the tender offer will be the first business day following the expiration date and currently is expected to be 20 May 2009. Holders of bonds subject to the tender offer who validly tender their bonds on or before the expiration date may validly withdraw their tendered bonds at any time on or before the expiration date.

        Title of Security           Principal Amount        Purchase Price (1)
           CUSIP No.                  Outstanding
        -----------------           ----------------
    4.00% Notes due 2010             USD 414,350,000               USD 1010.00
    CUSIP No. 460146BY8

Citigroup Global Markets Inc. and UBS Securities LLC are the lead dealer managers of the tender offer, and Banc of America Securities LLC, BNP Paribas Securities Corp, J.P. Morgan Securities Inc., and RBS Securities Inc. are serving as co-dealer managers for the tender offer. Global Bondholder Services Corporation has been retained to serve as the depositary and information agent. Persons with questions regarding the tender offer should contact Citigroup Global Markets Inc. at (toll-free) (800) 558-3745 or (collect) (212) 723-6106 or UBS Securities LLC at (toll-free) (888) 719-4210 or (collect) (203) 719-4210. Requests for copies of the Offer to Purchase, related letter of transmittal, and other related materials should be directed to Global Bondholder Services Corporation at (212) 430-3774 or (toll-free) (866) 470-3900.

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tennessee, the company employs more than 61,500 people in more than 20 countries and serves customers worldwide. In 2008, net sales were approximately USD 25 billion. For more information about International Paper, its products, and stewardship efforts, visit www.internationalpaper.com.

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