<B>Riverwood Sees Strength</B>

Riverwood International Corp. reported second quarter EBITDA of $84.9 million up 15.5% compared to $73.5 million in the second quarter of 1999. Net sales were $304.5 million, which is up 1.7% versus $299.5 million in the prior-year period, due principally to higher volumes in the international beverage and North American folding carton markets, and improved containerboard pricing. These increases were somewhat offset by lower North American beverage, international folding carton, and containerboard volumes, and unfavorable foreign currency exchange rates in Europe. Income from operations was $43.3 million, compared with $35.3 million in the same period a year ago.

``After the first six months of 2000, Riverwood is well ahead of last year's performance as we continue to realize the benefits of our cost reduction programs and shift volumes toward higher margin coated board sales. We will continue to focus on reducing costs, improving cash flow and achieving better returns on capital,'' said Stephen Humphrey, president and CEO.

Total coated board net sales were $278.9 million in the second quarter, up 1.0% from $276.1 million for the prior-year period. This increase is primarily due to higher volumes in international beverage and North American folding carton markets, and improved pricing for coated board products in North American and European markets, somewhat offset by lower North American beverage and international folding carton volumes, and unfavorable foreign currency exchange rates in Europe.

Looking forward, in 2000, Riverwood expects continued growth in its North American folding carton markets but does not expect to recover the North American beverage volume shortfall experienced this beverage season.

Containerboard

EBITDA in the company's containerboard segment increased to $5.3 million in the second quarter compared to a loss of $0.3 million in the prior-year quarter. Containerboard net sales were $25.6 million in the second quarter, up 9.6% from $23.3 million a year ago. Improvement in both EBITDA and net sales for Containerboard was primarily due to increased pricing somewhat offset by a decrease in volume.