Temple-Inland Inc. Reports Second Quarter Results.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--July 23, 2003

Temple-Inland Inc. (NYSE:TIN) today reported second quarter 2003 net income of $156 million, or $2.87 per diluted share, compared with second quarter 2002 net income of $15 million, or $0.29 per diluted share, and a first quarter 2003 loss of $18 million, or $0.32 per diluted share.

Results for second quarter 2003 include: (i) a previously disclosed one-time tax benefit of $165 million, or $3.05 per diluted share, and (ii) an after-tax charge of $15 million, or $0.28 per diluted share, primarily associated with consolidation and supply-chain cost reduction initiatives. Results for second quarter 2002 included an after-tax charge of $0.19 per diluted share primarily related to fees associated with the early repayment of the bridge financing for the acquisition of Gaylord. Results for first quarter 2003 included after-tax charges totaling $0.10 per share primarily associated with the closure of two box plants and consolidation and supply-chain cost reduction initiatives.

Corrugated Packaging

The corrugated packaging operation reported income of $1 million in second quarter 2003, compared with income of $29 million in second quarter 2002 and a loss of $4 million in first quarter 2003. The decline in earnings in second quarter 2003 compared with second quarter 2002 was primarily attributable to $13 million in higher energy costs, $7 million in higher pension expenses and lower box volumes. Income was up in second quarter 2003 compared with first quarter 2003 due to improved mill operations and higher box volumes.

Average prices for boxes in second quarter 2003 were flat compared with second quarter 2002 and down 2% compared with first quarter 2003. The…