<B>Consolidated Paper Reports Strong Quarterly Numbers</B>

Consolidated Papers Inc. reported second quarter earnings soaring 227 percent from the same period a year ago, matching analysts' expectations and benefiting from record shipments and improved selling prices.

Net earnings rose to about $33 million on sales of $506.9 million, up from year-ago earnings of $10.1 million on sales of $435.1 million.

The company said higher selling prices for paper, record shipments, and cost-reductions accounted for the improved earnings. However, it noted earnings were negatively affected by pulp cost increases.

Consolidated Papers had said it planned to cut a total of $100 million from expenses when it began a cost reduction program in 1999. The company has reduced costs by about $60 million so far and said it plans to trim an additional $40 million by year-end.

Total shipments for the quarter were 563,088 tons, up from 504,660 tons for the same period last year, the company said.

Consolidated Paper's primary products are coated and printing papers used for magazines, brochures, corporate annual reports, advertising inserts and catalogues. Total shipments of these papers were up 13 percent compared with the second quarter of 1999, and 2 percent compared with the first quarter of 2000, the company said.

In February, Consolidated Papers had agreed to be acquired by forest industry company Stora Enso Oyj in Helsinki, Finland. The deal has been approved by the boards of directors of both companies.