<B>G-P Responds to Caraustar Lawsuit</B>

Georgia-Pacific Corp. issued the following response to a lawsuit filed by Caraustar Industries in connection with a disagreement over terms of a contract to supply G-P with gypsum wallboard facing paper.

"Georgia-Pacific is committed to complying fully with its contracts. We repeatedly have attempted to negotiate this issue in good faith and we are disappointed by actions taken by Caraustar Industries," said A.D. "Pete" Correll, Georgia-Pacific chairman and chief executive officer. "We completely disagree with its interpretation of the contract and its representation of the situation as outlined in its news release. Contrary to Caraustar's statements, Georgia-Pacific agreed only to purchase specific grades of paperboard from Caraustar -- not all paperboard for the designated plants.

"We have been negotiating in good faith with Caraustar during the past several weeks and were assured that no lawsuit had been filed. So, it is surprising to find the lawsuit was filed almost one month ago," Correll added. "We intend to defend ourselves vigorously."