ATLANTA, Georgia. July 22, 1998 -- Georgia-Pacific Corp. and Masisa S.A. (NYSE: MYS) of Santiago, Chile, today announced the signing of a joint venture agreement that will expand Georgia-Pacific’s chemical operations into Argentina and Chile.

Through the agreement, Georgia-Pacific will acquire a 50 percent shareholder interest in two new companies formed by Masisa to operate resin and formaldehyde production operations in Concordia, Argentina, and Coronel, Chile.

Masisa is South America’s largest and lowest-cost producer of particleboard and medium-density fiberboard (MDF). It also manufactures formaldehyde and urea formaldehyde adhesives in Argentina and Chile, solely for use in its own wood products manufacturing processes.

Georgia-Pacific Resins Inc., the chemical division of Georgia-Pacific, is a market leader in chemical products for the building products and pulp and paper industries as well as other industrial manufacturing processes. The division has a strong market position in the United States and is recognized for its world class technologies. It operates 20 chemical manufacturing operations and related research facilities.

“This agreement supports our chemical division’s strategy of expanding into growing markets around the world,” said Lee Thomas, Georgia-Pacific executive vice president - paper and chemicals. “We are looking forward to a long, fruitful relationship with our new partners in South America.”
“This partnership creates an enormous business opportunity for both Masisa and Georgia-Pacific in Latin America,” said Juan Obach, Masisa chairman. “We believe that this agreement represents the first step in what will become a continuing relationship between our two companies.”

The joint venture positions Georgia-Pacific to initially grow its chemical business within Argentina and Chile, with plans to expand its products and services to Brazil and other markets in South America.

In March, Georgia-Pacific acquired a 50 percent shareholder interest in Resinkem (Pty) Limited, which is South Africa’s leading supplier of formaldehyde and urea formaldehyde adhesives used primarily by the manufactured board industry.

Headquartered at Atlanta, Georgia-Pacific 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 building products and related chemicals. It consists of two distinct operating groups -- the Georgia-Pacific Group (NYSE: GP), which includes the pulp, paper and building products business, and The Timber Company (NYSE: TGP), which manages 5.8 million acres of timberland in North America.

Media Contact:
Ken Haldin (404) 652-6098