Boise Inc. to Idle One Newsprint Machine Indefinitely



    BOISE, Idaho, April 27 /CNW/ -- Boise Inc. (NYSE:   BZ)  a leading
manufacturer of packaging products and papers, today announced it has
indefinitely idled its D-2 newsprint machine at its mill in DeRidder,
Louisiana.  The D-2 machine has been idled since February 9.  The company will
continue to operate the D-3 newsprint machine and the D-1 linerboard machine
at the DeRidder mill.
    

    
    The company began selling newsprint on March 1 of this year,
transitioning away from a marketing agreement with AbitibiBowater.  While
idling capacity, the company has made a commitment to its newsprint business
through the formation of an experienced and dedicated sales team led by Sean
Terry.  Boise Inc. newsprint products have a well-established presence with
major newsprint publishers in the southern U.S., Mexico, and Central and South
America.
    

    
    "This was a difficult decision because we know it affects our employees,
who have performed well and safely," said Alexander Toeldte, President and
Chief Executive Officer of Boise Inc.  "The drastic decline in newsprint
demand is an external factor that none of us can control.  Indefinitely idling
the machine minimizes our costs while preserving our future options."
    

    
    The machine has an annual production capacity of 186,000 tons of
newsprint.  Idling capacity allows the company to reduce operating and capital
costs in light of unprecedented declines in demand for newsprint while
preserving the asset for potential future use.  The D-2 machine is being
preserved, enabling the company to restart it within a short period of time
should the need arise.  The company may also pursue options to convert the
machine to packaging products at a later date.
    

    
    The indefinite idling will result in a loss of ten salaried jobs at the
DeRidder mill.  Eligible salaried employees will be offered severance
packages, as well as outplacement assistance.  The 95 hourly employees
affected will remain on layoff status.  Closure agreement negotiations will be
scheduled with the United Steelworkers Locals 13-0725 and 1226 to determine
the impacts for union employees.  The company has filed a notice of its intent
to indefinitely idle the machine under the WARN Act and will pay union
employees in lieu of notice.
    

    The company expects to employ about 450 people at the mill with D-2 idle.

    About Boise Inc.
    
    Headquartered in Boise, Idaho, Boise Inc. (NYSE:   BZ) manufactures
packaging products and papers including corrugated containers, containerboard,
label and release and flexible packaging papers, imaging papers for the office
and home, printing and converting papers, newsprint, and market pulp.  Our
entire team of approximately 4,350 employees is committed to delivering
excellent value while managing our businesses to sustain environmental
resources for future generations.  Visit our website at www.BoiseInc.com.
    

    Forward-Looking Statements
    
    This press release may contain forward-looking statements.  These
statements reflect management's current views and are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in these statements.  There are factors, some of which
are beyond our control, that could affect our ability to achieve our intended
business and financial objectives.  Some of these factors include changes in
business and general economic conditions, unforeseen technical issues that
could increase our costs or impact our ability to restart the machine, and the
outcome of our closure agreement negotiations with our union employees.  We
undertake no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events, or otherwise.  Other
factors that could cause or contribute to actual results differing materially
from such forward-looking statements are discussed in detail in the company's
filings with the Securities and Exchange Commission.
    




    




For further information:

For further information: media, Virginia Aulin, +1-208-384-7837, or
investor relations, Jason Bowman, +1-208-384-7456, both of Boise Inc.  Web
Site: http://www.boiseinc.com

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