<B>Buckeye Reports Strong Quarter</B>

Buckeye Technologies Inc. announced July-September net income of $15.5 million, up 16% from net income of $13.4 million earned in the comparable period last year. Net sales of $178.9 million increased 17% versus the same quarter last year.

Robert E. Cannon, Buckeye chairman, commented "We achieved strong results in July-September, which is usually a slow quarter. We set new first quarter net sales and earnings records. Putting seasonality aside, it was also our second best quarter ever."

"While the prospect of a slowdown in the global economy may affect our future business, it is hard to imagine an impact that would justify the about 30% reduction in our share price that has occurred in the last 30 days," Cannon added.

Buckeye is a manufacturer and marketer of specialty cellulose and absorbent products, headquartered in Memphis, Tenn. The company operates facilities in the United States, Germany, Canada, Ireland, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.