EXHIBIT 99
133 Peachtree Street Northeast
Atlanta, Georgia 30303
(404) 652-4000
News from Georgia-Pacific
Release No. C-1535
Contact: Ken Haldin
(404) 652-6098
Greg Guest
(404) 652-4739
July 6, 1999
GEORGIA-PACIFIC COMPLETES MERGER WITH UNISOURCE WORLDWIDE,
APPOINTS KEY LEADERSHIP; SETS TARGET FOR RESUMPTION
OF SHARE REPURCHASES
ATLANTA -- Georgia-Pacific Corp. today announced that it has
completed its merger with Unisource Worldwide Inc., named a
leadership team for Unisource and embarked on a comprehensive
initiative to strategically unite the two companies for the
benefit of shareholders of Georgia-Pacific Group (NYSE: GP), the
pulp, paper and building products business of Georgia-Pacific
Corp.
In addition, the corporation has increased its target
corporate debt level to $6.8 billion, including $5.8 billion for
Georgia-Pacific Group, up from $4.75 billion to reflect financing
incurred for the Unisource merger. Assuming continued strong
operating results and cash flow, the group anticipates resuming
share repurchases.
Unisource, formerly North America's largest independent
marketer and distributor of printing and imaging paper and supply
systems, will conduct business under its existing name as a
separate distribution subsidiary of Georgia-Pacific Group. As a
result of this transaction, Unisource common stock will be
delisted from the New York Stock Exchange and it will cease to be
a Securities and Exchange Commission reporting company.
Combined revenues of the merged companies exceeded $20
billion last year.
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"Since our merger agreement was first announced, we have
been aggressively focusing on a strategy that will transform
Unisource and optimize the synergies between its distribution
business and Georgia-Pacific," said A.D. "Pete" Correll, chairman
and chief executive officer of Georgia-Pacific Corp. "We expect
to be able to achieve immediate operational improvements and to
make hard-cost savings by reducing overhead and eliminating the
overlaps inherent in these businesses.
"At the same time, Georgia-Pacific Group's essential
financial objectives remain firmly in place. Those objectives
are to generate returns over the business cycle that exceed the
cost of capital, limit our capital spending, target the group to
operate below its debt-level ceiling and distribute excess free
cash flow to shareholders through share repurchases," Correll
said. "Together with our strategy to own and operate a fortified
commercial tissue business through our recently announced
Wisconsin Tissue partnership, Georgia-Pacific Group has further
strengthened its position to compete in our industry with solid
cash flows and diverse earnings capability."
The new Unisource leadership team will be overseen by Lee M.
Thomas, executive vice president - paper and chemicals. The
leadership group includes several key Georgia-Pacific managers
who will guide Unisource's operations as a subsidiary of Georgia-
Pacific.
Charles C. Tufano, vice president - building products sales
and distribution, west, and formerly director of printing papers
sales for the company's communication papers group, has been
named president of Unisource. "Chuck's unique background of
leadership in distribution, printing, publishing and packaging
functions will serve him well as he works with Unisource's
customers and suppliers to provide superior service as an
organization," said Thomas.
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Reporting to Tufano will be two current Unisource executives
- - Kenneth F. Vuylsteke and Paul B. Stewart Jr. Vuylsteke has
been named vice president - Unisource west and Stewart has been
named vice president - Unisource east. Tufano also will work
directly with Yves Montmarquette, president - Unisource Canada,
who will continue to manage the subsidiary's Canadian business.
Also reporting to Tufano will be Simon H. Davies, formerly
director of international business - Georgia-Pacific paper group,
who was named vice president - Unisource international
operations; Michael Houghton, formerly director of sales and
marketing - Georgia-Pacific communication papers, who was named
vice president - Unisource marketing; and Matthew C. Tyser,
formerly group controller - Georgia-Pacific building products
sales and distribution, who was named vice president and chief
financial officer for Unisource.
"Our new Unisource management group already has hit the
ground running," said Correll. "I am confident this is a very
strong team to lead the transformation and build Unisource into
the preferred distributor of paper and supplies in North
America."
In other announcements regarding Georgia-Pacific's building
products distribution division, Steven C. Hardin, national sales
manager, structural panels, has been named vice president,
building products sales and distribution - west, replacing
Tufano, effective immediately. David Morris, regional sales
manager - growth accounts, has been named vice president and
controller - building products distribution.
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Georgia-Pacific (www.gp.com) is the leading manufacturer and
distributor of building products in the United States and one of
the world's leading manufacturers and distributors of pulp, paper
and related chemicals for the forest products industry. It
consists of two distinct operating groups: Georgia-Pacific Group
and The Timber Company (NYSE: TGP), which manages 5 million acres
of timberland in North America. The company employs 45,000
people at more than 400 locations in the United States and
Canada.
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