Buckeye Receives Favorable $5.5 Million Tax Ruling; Schedules 2004-05 Year End Results Call.

MEMPHIS, Tenn. -- Buckeye Technologies Inc. (NYSE:BKI) today announced that the Internal Revenue Service has upheld a $5.5 million tax benefit which the Company claimed in 2002, relating to its investment in its discontinued facility at Cork, Ireland. The Company expects to reflect this reduction in its corporate tax expense, which is approximately 15 cents per share, in the quarter which ended June 30, 2005. This ruling has no cash implications but will enable the Company to reduce its deferred tax liability and increase stockholders' equity by $5.5 million.

Buckeye has scheduled a conference call for August 3, 2005 at 9:30 a.m. CST to discuss its fourth quarter and fiscal year-end 2005 results. All interested parties are invited to dial in at 800-946-0782 (U.S.) or 719-457-2657 (International).

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.