G-P Selling Interest in Aracruz Celulose

Georgia-Pacific Corp. has agreed to sell to an undisclosed purchaser for approximately $75 million all of its interests in three Brazilian companies which own a minority, non-voting interest in Brazilian pulp company Aracruz Celulose S.A.

After-tax proceeds from the sale are expected to be approximately $56 million and the company expects to record a $10 million gain upon closing. The transaction is expected to close during second quarter 2004. The company expects to utilize the proceeds from the transaction to further reduce its debt.

G-P acquired this holding as part of its acquisition of Fort James Corp. in 2000. Aracruz Celulose is a producer of bleached hardwood kraft market pulp and eucalyptus pulp, which is a high-quality variety of hardwood pulp used by paper manufacturers to produce a wide range of products, including premium tissue, printing and writing papers, liquid packaging board and specialty papers.