Buckeye Closes $30 Million Credit Facility.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Dec. 10, 2001

Buckeye Technologies Inc. (NYSE:BKI) today announced the closing of a $30 million receivables based credit facility with Wachovia Bank, N.A. The proceeds from this facility will be used for general corporate purposes and to repay a $22 million note due to UPM-Kymmene by December 31, 2001 as part of the seller financing of Buckeye's purchase of their airlaid nonwovens business.

Buckeye Chairman, Robert E. Cannon commented that, "We are pleased to have entered into this attractive credit arrangement. Closing this loan will enable us to maintain credit availability where it has been for the past several months at about $30 million after we repay the $22 million note. We look forward to a continuing mutually beneficial relationship with Wachovia Bank, one of the country's leading financial institutions."

Buckeye, a leading manufacturer and marketer of specialty cellulose and absorbent products, is headquartered in Memphis, Tennessee, USA. The Company has facilities in the United States, Germany, Canada, Ireland, 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, 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.