Buckeye Announces Fourth Quarter and Fiscal Year Results.

MEMPHIS, Tenn. -- Buckeye Technologies Inc. (NYSE:BKI) today announced that it earned $15.9 million after tax ($.41 per share) in the quarter ended June 30, 2007. The Company's results included a $2.0 million pre-tax benefit from a water conservation partnership payment, a $2.1 million pre-tax benefit from reversal of accrued interest related to cancellation of a contingent note owed to Stac-Pac Technologies Inc., and a $3.3 million tax benefit from adjustments relating to federal and state valuation allowances and credits. The combined benefit of these three items on our Q4 earnings was $.15 per share.

During the same quarter of the prior year the Company earned $1.2 million after tax ($.03 per share) which included a $0.8 million tax benefit ($.02 per share) related to a reduction in Canadian federal and provincial tax rates and restructuring and impairment expenses of $0.5 million after tax ($.01 per share) primarily associated with equipment sales at the closed operations in Lumberton, North Carolina and Glueckstadt, Germany.

During the 2007 fiscal year, the Company earned $30.1 million after tax ($.79 per share) which included the benefit of the $5.7 million after tax ($.15 per share) discussed above and restructuring charges of $0.8 million after tax ($.02 per share). This compares to fiscal year 2006 earnings of $2.0 million after tax ($.05 per share), including restructuring and impairment expenses of $3.6 million after tax ($.10 per share).

Net sales for the April-June quarter were $200 million, 3.5% above the $193 million achieved in the same quarter of the prior year. Net sales for fiscal year 2007 were $769 million, 5.6% above the $728 million achieved in the prior year.

Chairman and Chief Executive Officer John B. Crowe said, "We are pleased with the improved results, both for the quarter and fiscal year. We credit the improved earnings to strong demand across all of our businesses and to the combination of higher prices, better mix and cost reductions. Reduced costs and higher volumes at our Americana plant also contributed to improved earnings, both for the quarter and total year. Our Nonwoven materials segment sales and earnings were strong for the total year, but even though sales were higher, operating income for the quarter was down compared to the January - March quarter due to higher corporate SRA allocations and special maintenance items. We continue to generate strong cash flow and we lowered our debt during the year by $76 million (from $521 million to $445 million), which includes the cancellation of the $5.0 million Stac-Pac note."

Mr. Crowe went on to say, "With the anticipated improved fourth quarter results, we provided an earnings alert on July 25. Today we are releasing our results ahead of schedule and we will discuss fourth quarter and annual results at our conference call scheduled for 10:30 a.m. Eastern, Wednesday, August 8, 2007 following a review of our results with the Board of Directors at the previously scheduled August 7 meeting. We appreciate your understanding for the delay between today's announcement and our conference call."

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company's operations, financing, markets, products, services and prices, and other factors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]