Temple-Inland Board Rejects IP's Tender Offer

Temple-Inland Inc., Austin, Texas, USA, this week announced that its board of directors, after careful consideration with its independent financial and legal advisors, voted unanimously to reject the unsolicited tender offer from International Paper Co., Memphis, Tenn., to acquire all outstanding common shares of Temple-Inland at a price of $30.60 per share in cash. The board said that it unanimously determined that the offer "grossly undervalues Temple-Inland and is not in the best interests of Temple-Inland's stockholders" The board unanimously recommended that Temple-Inland stockholders not tender their shares into IP's offer.

The basis for the board's recommendation with respect to IP's tender offer is set forth in Temple-Inland's Schedule 14D-9 filed this week with the Securities and Exchange Commission (SEC). The reasons why the board recommends that Temple-Inland stockholders not tender their shares into IP's offer are detailed in the Schedule 14-D-9.

"Since we launched the 'new' Temple-Inland in January 2008, we have delivered superior results to our stockholders compared with our corrugated packaging peers, building products peers, and the S&P 500. The Temple-Inland board is unanimous in its belief that the offer grossly undervalues Temple-Inland and its prospects, including its position as the return on asset leader in the corrugated packaging industry, expected benefits from box plant transformation, its low-cost building products operation, and its strategic place within the industry as the third largest producer of corrugated packaging in North America," said Doyle R. Simons, chairman and CEO of Temple-Inland.

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