MEMPHIS, Tenn., July 22, 2010 /PRNewswire via COMTEX/ -- International Paper (NYSE:IP) announced today that it reached agreement to sell 163,000 acres of properties located in the southeastern United States for approximately $200 million in a transaction with an affiliate of Rock Creek Capital (the "Partnership"). A minimum of $160 million will be received at closing, with the balance, plus interest, to be received no later than three years from closing. In addition, IP will receive 20% of the Partnership's net profits after it achieves certain financial returns.

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"This sale will substantially complete the monetization of our forest land and realty holdings," said Dave Liebetreu, International Paper's vice president, global sourcing and forest resources. "The transaction represents good value in this economic environment and allows us to participate in the upside potential as the real estate market recovers."

The transaction is expected to close in the third quarter of 2010.

About International Paper

International Paper (NYSE:IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers, and complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs more than 60,000 people in more than 20 countries and serves customers worldwide. 2009 net sales were approximately $23 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ relate to: (i) the ability of the parties to successfully consummate the transaction contemplated by the sale agreement under the announced terms; (ii) the successful fulfillment (or waiver) of all conditions set forth in the sale agreement; and (iii) the successful closing of the transaction within the estimated timeframes. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

SOURCE International Paper

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