Buckeye Purchases Stac-Pac Technology.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--March 9, 2000

Buckeye Technologies Inc (NYSE:BKI) today announced its purchase of the Stac-Pac packaging technology from Stac-Pac Technologies Inc. for a price of $25 million. Stac-Pac is a proprietary system for packaging low-density nonwoven materials in compressed rectangular units and is expected to make the roll form in which these nonwovens are currently shipped to customers obsolete.

The Stac-Pac units nest more compactly than rolls in trucks and containers significantly reducing freight costs. This approach also allows the efficient supply of extremely narrow widths and enables Buckeye's customers to feed high-speed feminine hygiene and diaper production lines with an uninterrupted flow of materials.

The acquisition includes several recently granted U.S. patents and corresponding foreign patent applications which collectively protect Buckeye's proprietary technology. The purchase also includes equipment which implements this novel approach and several trademarks.

Buckeye Chairman Robert E. Cannon commented: "We will continue to enhance this innovative technology which provides the optimum packaging solution for shipping low-density materials such as airlaid nonwovens. The Stac-Pac acquisition provides us a substantial competitive advantage."

He also said: "We have been working with our customers in the development of this approach. We and they are convinced that it represents a significant breakthrough in packaging technology. Stac-Pac provides a cost-effective system for delivering the multi-functional composite materials that we have developed for a broad array of end-use applications."

Buckeye is constructing the world's largest airlaid nonwovens machine in Gaston, North Carolina. This new machine will have a capacity of 50,000 metric tons, approximately three times that of existing machines, and will commence operation in April, 2001. This plant will be equipped with the new packaging technology as will several of Buckeye's other facilities.

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