Temple-Inland Rebuffs International Paper’s Acquisition Proposal

MEMPHIS, TN/AUSTIN, TX—June 7, 2011—International Paper announced on Monday that it has proposed to acquire all of the outstanding shares of corrugated packaging manufacturer Temple-Inland for $30.60 per share in cash.

In response, Temple-Inland first issued a statement that its board of directors, after careful consideration with its independent financial and legal advisors, voted unanimously to reject International Paper’s proposal after the board determined unanimously that the proposal grossly undervalues Temple-Inland and is not in the best interest of Temple-Inland’s stockholders. Today, it announced that its board adopted a stockholder rights plan (known as a poison pill) and declared a dividend distribution of one Preferred Share Purchase Right on each outstanding share of Temple-Inland common stock.