EXHIBIT 99.2 News Release Contact Martha A. Buckley JoAnn P. Huston Director, Corporate Communications Manager, Investor Relations 610-722-3511 610-722-3513 mbuckley@unisourcelink.com jhuston@unisourcelink.com UNISOURCE WORLDWIDE, INC. APPROVES REGULAR QUARTERLY DIVIDEND ANNOUNCES INTENTION TO REDUCE FUTURE DIVIDENDS BERWYN, PENNSYLVANIA JULY 29, 1998 The board of directors of Unisource Worldwide, Inc. (NYSE:UWW) today approved a dividend on its Common Stock of 20 cents per share payable September 10, 1998, to common shareholders of record at the close of business on August 24, 1998. In conjunction with an extensive restructuring plan announced today by Unisource, the board also announced its intention to reduce future quarterly dividends to $.05 per share, beginning with the dividend payable in December 1998. "Our board determined that the funds currently being allocated to dividends would serve shareholders better if reinvested in the future growth of our company," said Ray B. Mundt, chairman and chief executive officer. Unisource Worldwide, Inc. (http://www.unisourcelink.com), headquartered in Berwyn, Pennsylvania, is one of the largest distributors of paper products and supply systems in North America. Fiscal 1997 revenues exceeded $7 billion. # # #