<B>Caraustar Files Suit Against G-P</B>

Caraustar Industries Inc. filed a breach of contract suit against Georgia-Pacific Corp. for reducing purchases that it said will force Caraustar to close a mill and result in lowered earnings estimates.

The 1996 contract, which runs through August 20, 2005, requires Georgia-Pacific to purchase all paper products used in wallboard manufacturing at the plants designated in the contract, Caraustar said. But recently G-P contended the contract does not include certain grades of gypsum facing paper and that G-P will manufacture these grades for itself.

According to Caraustar, G-P's purchases have fallen by more than 80 percent from 7,000-tons-per-month level during the first half of this year. G-P has also indicated that it expects to further reduce its gypsum facing paper purchases from Caraustar.

Caraustar estimates that as a result of G-P's reductions in purchases, its pre-tax operating income will be reduced by $2 million to $2.9 million, and per-share earnings will be reduced by 5 cents to 7 cents in the third quarter.

Because of G-P's actions, Caraustar will immediately close its Camden, New Jersey mill, which will result in a one-time after-tax charge of approximately $6 million, it said.