<B>PCA Selling Timberlands</B>

Packaging Corporation of America entered into an agreement to sell approximately 385,000 acres of timberland to Southern Timber Ventures, LLC.

Packaging Corporation of America expects to receive from the sale about $250 million in cash and a one-third equity ownership interest in Southern Timber Ventures, LLC.

``This sale will accomplish three important objectives for PCA,'' said Paul Stecko, chairman and CEO of PCA. ``First, it will provide us with approximately $250 million in cash, which we plan to use to pay down debt and help meet our goal of reducing our initial debt by $1.2 billion by the end of 2001. Second, the sale will provide us with a long term fiber supply agreement for our Counce, Tenn., mill. Finally, as a result of our equity interest in Southern Timber Ventures, PCA will retain a portion of the potential long term appreciation of these timberland assets.''