Jul 20, 2005. /Lesprom Network/. International Paper announced a transformation plan that will improve returns, strengthen the balance sheet and return cash to shareowners. International Paper will make portfolio changes to concentrate on two key platform businesses: uncoated papers and industrial and consumer packaging. "We already have a strong global position in uncoated paper and have a growing worldwide platform in packaging. Our portfolio changes will allow us to better focus management attention and financial resources on these key businesses, which represent over 70% of our sales, and can achieve both cost-of-capital returns and profitable growth," said Chairman and Chief Executive Officer John Faraci. To focus on the two key platform businesses, IP will evaluate strategic options for other businesses - including the potential sale or spin-off of IP's 50.5% stake in Carter Holt Harvey, the coated and supercalendered papers business, including the coated groundwood mill and associated assets in Parana, Brazil, and the beverage packaging business, including the Pine Bluff, Arkansas, mill and others. These businesses to be evaluated represent approximately 30% of 2004 sales (including intercompany sales) and $925 million, or 40% of operating profits. The company expects the evaluation of these businesses to be complete by the first quarter of 2006. The evaluation of Carter Holt Harvey is expected to be complete by year-end 2005. IP will continue to operate the businesses to meet the needs of customers and generate earnings for shareowners. "In uncoated paper, we have significant opportunities to win for both customers and shareowners because we have low-cost facilities in the right places throughout the world and relationships with the right customers," Mr. Faraci said. "We have potential to improve our cost position in the United States, and we expect continued demand growth in Eastern Europe, Latin America and Asia." IP is the world leader in uncoated paper with 6.6 million tonnes of capacity in the United States, Brazil and Europe and 2004 sales of approximately $5.8 billion. "Our U.S. corrugated container and containerboard business is a solid business which is earning the right to grow, and the changes planned will further strengthen this business," Mr. Faraci said. "We have strengthened our U.S. Industrial Packaging business through the acquisition of Box USA, and we have a strong European box business. We are a top producer of coated board, and we have advantages in terms of cost and customer base with a solid consumer packaging franchise," Mr. Faraci added. IP's global packaging business includes 6.7 million tonnes of manufacturing capacity for containerboard and coated board, as well as 128 converting locations in the United States, Latin America, Europe and Asia. International Paper is the world's largest paper and forest products company. Businesses include paper, packaging, and forest products. Headquartered in the United States, International Paper has operations in over 40 countries and sells its products in more than 120 nations.