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GEORGIA-PACIFIC REACHES AGREEMENT IN SALE OF ENVELOPE MANUFACTURING BUSINESS

 ATLANTA, Dec. 8 /PRNewswire/ -- Georgia-Pacific Corp. (NYSE: GP) today announced that its wholly owned subsidiary, G-P Envelope Holdings, Inc., signed a definitive agreement with a newly created company sponsored by The Sterling Group, Inc., a Houston-based private financial group, to sell the assets of Georgia-Pacific's envelope manufacturing business.
 The transaction includes 15 envelope manufacturing plants and certain assets of another plant, all of which are operated primarily as Mail-Well Envelopes and Wisco Envelopes.
 Although the sale price is not being disclosed, Georgia-Pacific expects the sale to result in after-tax cash proceeds of between $110 million and $120 million, subject to working capital adjustments as of the closing date.
 Georgia-Pacific said it expects to complete the transaction early in the 1994 first quarter.
 "Mail-Well and Wisco are well-managed with experienced and motivated employees," A.D. "Pete" Correll, chairman and chief executive officer, said.
 "We look forward to a continued good working relationship with this business as one of its primary paper suppliers. These operations form one of the nation's largest envelope manufacturers with about 2,500 employees producing up to 13 billion envelopes each year," he said.
 Under terms of the definitive agreement, the buyer will offer employment to substantially all of the employees of Georgia-Pacific's envelope manufacturing business.
 The sale is subject to authorization by Georgia-Pacific's board of directors, applicable regulatory approvals and other closing conditions.
 -0- 12/8/93
 /CONTACT: Sheila Weidman, 404-652-4732 or John Buchholz 404-652-6098, both of Georgia-Pacific/
 (GP)


CO: Georgia-Pacific Corp.; G-P Envelope Holdings, Inc.; The
 Sterling Group, Inc. ST: Georgia, Texas IN: PAP SU: TNM


BR -- AT001 -- 1612 12/08/93 08:46 EST
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Publication:PR Newswire
Date:Dec 8, 1993
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