CHAMPION INTERNATIONAL CORPORATION REPORTS RECORD QUARTERLY EARNINGS.

STAMFORD, Conn.--(BUSINESS WIRE)--July 10, 1995--Champion International Corporation today reported record second quarter earnings of $1.79 per share. This compares with a loss of 41 cents per share for the second quarter of 1994 and earnings per share of $1.26 for the first quarter of this year.

The company's paper segment reported operating income of $344 million. This compares with a loss of $38 million a year ago and income of $230 million last quarter. The substantial improvement from last year and last quarter was due principally to higher prices for all of the company's major pulp and paper grades.

The company's wood products segment reported income from operations of $28 million compared to $56 million a year ago and $49 million in the first quarter of 1995. The decline from last year and last quarter was due primarily to lower prices for lumber and increased costs for purchased wood.

In his comments on the quarter, chairman and chief executive officer Andrew C. Sigler said, "We are very pleased with the second quarter's results. While higher pulp and paper prices were the main factor, we continue to be encouraged by the strong operating performance at our mills." Sigler added that the outlook for Champion should remain very positive as long as global economic activity continues to be strong. -0-

         CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                     (in thousands, except per share)

                         Three Months Ended           Six Months Ended
                                 June 30,                  June 30,
                             1995         1994         1995         1994
     Net Sales:
     Paper               $ 1,526,099  $   981,721  $ 2,887,854  $ 1,941,729
     Wood Products           230,333      260,237      502,602      526,349
                         $ 1,756,432  $ 1,241,958  $ 3,390,456  $ 2,468,078
     Income From
     Operations:
     Paper  (Note 1)     $   344,112  $   (38,423) $   574,226  $   (78,390)
     Wood Products            27,831       56,386       76,410      120,669
     General Corporate
     Expense                 (24,693)     (13,791)     (42,982)     (21,298)
                             347,250        4,172      607,654       20,981

     Interest and debt
     expense                  54,811       58,890      114,528      115,427
     Other (income)
     expense - net  (Note 2) (11,477)      (8,627)     (31,253)      (8,387)

     Income (Loss) Before
     Income Taxes            303,916      (46,091)     524,379      (86,059)

     Income Taxes (Benefit)  116,383      (14,993)     205,621      (23,975)

     Net Income (Loss)   $   187,533  $   (31,098) $   318,758  $   (62,084)

     Earnings (Loss) Per
     Common Share:  (Note 3)
     Primary             $      1.93  $     (.41)  $      3.27  $     (.82)
     Fully Diluted       $      1.79  $     (.41)  $      3.04  $     (.82)

     Note 1.  Income from operations - paper for the
     six months ended June 30, 1995 includes $13
     million of non-recurring expenses primarily for
     the writedown of certain receivables from
     customers in Mexico and for certain legal
     contingencies.

     Note 2.  Other (income) expense - net for the
     three months and six months ended June 30,
     1995 includes non-recurring gains of $39 million
     and $89 million, respectively, from the sales of
     certain operations in Canada and non-recurring
     charges of $32 million and $68 million,
     respectively, primarily for the writedown of
     certain U.S. paper and wood products assets.

     Note 3.  Earnings per share was calculated for
     each three month and six month period on a
     stand-alone basis.  On June 22, 1995 the
     company purchased all 7,894,737 shares of
     Common Stock that were issued on that  date
     upon conversion of the $92.50 Convertible
     Preference Stock, and on June 30, 1995 the
     company purchased an additional 2,000,000
     shares of Common Stock.  As a result of this
     reduction in the number of shares outstanding,
     the sum of the earnings per share for the first
     and second quarters of 1995 does not equal the
     earnings per share for the first six months of
     1995.

     CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
     CONSOLIDATED BALANCE SHEET
     (in thousands of dollars)

                                        June 30,    December 31,
                                          1995         1994
                                       (unaudited)
     ASSETS:
     Cash and temporary cash
       investments                    $   255,608  $    90,948
     Receivables - net                    673,511      562,085
     Inventories                          398,804      441,430
     Prepaid expenses                      35,268       23,286
     Deferred income taxes                 61,753       61,032

Total Current Assets                    1,424,944    1,178,781

     Timber and timberlands - net       1,914,978    1,846,823
     Property, plant and
       equipment - net                  5,498,643    5,602,614
     Other assets and deferred
       charges                            315,497      335,410
     Total Assets                     $ 9,154,062  $ 8,963,628

LIABILITIES AND
     SHAREHOLDERS' EQUITY:
     Current installments of
     long-term debt                   $   275,613  $   308,922
     Short-term bank borrowings           211,903       90,184
     Accounts payable and
       accrued liabilities                596,247      592,033
     Income taxes                          89,936       43,273
     Total Current Liabilities          1,173,699    1,034,412

     Long-term debt                     2,994,790    2,889,252
     Other liabilities                    690,022      670,761
     Deferred income taxes              1,108,457    1,039,927
     Minority interest in
       subsidiaries                        91,459       68,531
     Preference stock, $92.50
       cumulative series                      ---      300,000
     Shareholders' Equity               3,095,635    2,960,745
     Total Liabilities and
       Shareholders' Equity           $ 9,154,062  $ 8,963,628

CONTACT: Champion International Corporation, Stamford

Mary E. Green, [phone]