<B>Gaylord Looking to Take More Downtime</B>

Gaylord Container Corporation announced that, as indicated in its fiscal third quarter earnings release might be the case, it will in fact take substantially more mill downtime during its current fiscal fourth quarter than it accumulated during the quarter ended June 30, 2000.

The downtime, which could total as much as 75,000 tons versus the approximately 25,000 tons taken in the third quarter, is needed to reduce the company's inventories to year-end plan levels in the face of weaker than expected domestic and export demand for primary mill products.

While the company's backlog of orders for converted corrugated packaging materials remains solid, shipments of retail and multiwall bags have weakened, primarily in response to the company's implementation of price increases for those products.

In addition, the fourth fiscal quarter results will be negatively impacted by the recent dramatic increase in natural gas prices in an amount currently estimated at approximately $3 million.

The favorable impact of lower recycled fiber procurement costs will partially offset the decline in operating earnings associated with the reduced volumes and higher energy costs expected during the current quarter. If the prices currently being paid by Gaylord for recycled fiber remain unchanged until the end of September, fourth quarter operating earnings will be benefited by approximately $7 million.