Buckeye Enters Joint Venture With Z Pellet Enterprises.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Nov. 1, 2001

Buckeye Technologies Inc. (NYSE:BKI) announced today that it has entered into a joint venture with Z Pellet Enterprises, Inc. of Weldon, N.C. The new venture will focus on expanding the market for FuzZpellets(TM), a pelleted cottonseed dairy feed. The new joint venture, CottonFeed, LLC, will provide marketing, manufacturing and process technology expertise to third party manufacturers who will produce the product.

FuzZpellets(TM), a pelletized cottonseed produced by a patented, proprietary process, is currently being manufactured in Weldon, N.C. by Southeastern Protein, a licensee of the joint venture.

Mr. David Ferraro, President of Buckeye Technologies, commented that "Over 4 million tons of whole cottonseed are sold to the U.S. dairy industry each year. FuzZpellets(TM) offers significant advantages. This new product flows more easily and has greater bulk density than whole cottonseed. This translates into transportation and material handling savings while delivering the nutritional benefits feed mills and dairy farmers require."

In recent months Buckeye has introduced a partially delinted cottonseed dairy feed with the trademarked name CottonFlo(TM) which is gaining a significant following among major feed mills due to its nutrient density, flowability and cleanliness. FuzZpellets(TM) and CottonFlo(TM) are complementary offerings according to Michael Dunlow, President of Z Pellet Enterprises, Inc. "Both of these products deliver unique, desirable attributes to the dairy feed market," stated Mr. Dunlow.

CottonFeed, LLC will assist third party manufacturers as they evaluate the market opportunities to produce both of these trademarked, value-added feed products. Manufacturing will take place in efficient facilities that are designed using the process technology definitions available from Buckeye.

Buckeye, a leading manufacturer and marketer of specialty cellulose and absorbent products, is headquartered in Memphis, Tennessee, USA. The Company currently 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.