St. Laurent Paperboard Inc. Announces a $6 Million Net Earnings Increase Compared to Last Year's First Quarter.

      Business Editors

      MONTREAL--(BUSINESS WIRE)--April 25, 2000--St. Laurent Paperboard
Inc. (TSE:SPI.) (NYSE:SLW) reports first quarter net earnings of $8.3
million, or $0.17 per share, on net sales of $282.2 million, compared
to net earnings of $2.3 million, or $0.05 per share, on net sales of
$198.4 million for the same quarter in 1999.
      The first quarter results were impacted by an unusual expense of
$2.5 million after tax or $0.05 per share related to expenses incurred
in the course of the pending acquisition of the Company by
Smurfit-Stone Container Corporation. Without this unusual expense, net
earnings would have amounted to $10.8 million, or $0.22 per share for
the first quarter of 2000.

*T

BUSINESS REVIEW

      * Pre-merger agreement concluded on Feb. 23 with Smurfit-Stone
Container Corporation.
      * Operating earnings increase of $21.5 million.
      * Price increases of $50 per ton for linerboard and $60 per ton
for corrugating medium announced for Feb. 1st shipments.
      * Corrugated box price increase of 12 % effective with April 1st
shipments.
      * Successful conversion of the La Tuque, Quebec white top
linerboard machine to lightly clay-coated linerboard. Related downtime
taken at the mill lowered production by close to 11,000 tons.
      * Machine conversion at the Matane, Quebec mill enabling
production of 23lbs/msf corrugating medium.
      * Start-up of two value-added converting facilities at Pickering,
Ontario and Columbus, Ohio.
      * E.Commerce initiative continues to develop efficiently and first
consumer contract has been signed.
      * Productivity increase of 4 % at the West Point mill, mainly due
to a very good performance of the white top machine.
      * Started construction of two greenfield sheet feeders in Ontario
and California.

NET SALES

      Net sales in the first quarter of 2000 increased to $282.2 million
compared to $198.4 million for the same period in 1999. This
improvement is attributable to the following:

      * Net price realizations of paperboard products were 28 % higher
compared to the corresponding quarter of 1999, which contributed to
increase sales by approximately $36 million.
      * Shipments of corrugated containers increased by 478 million
square feet, a 38 % improvement, and net price realizations were up 20
% contributing to net sales increase of $43.1 million when compared to
the same quarter in 1999. The increased shipments were attributable to
the strong performance of the Milwaukee sheet feeder facility and the
acquisition of Castle Rock Container and Eastern Container.
      * Sawmills' net sales increased by $7.3 million over the
corresponding quarter last year, the result of the acquisition of
three sawmills and a hardwood lumber re-manufacturing facility.
      * Liquid and food packaging net sales increased by $4.2 million
attributable to higher shipments and net price realizations which were
respectively 28 % and 5.6 % better than the same quarter in 1999.

*T

Table 1  - Key Financial Results
(In millions of US dollars, except percentage and per share amounts)
----------------------------------------------------------------
                           2000             1999            1999
                          First            First          Fourth
                        Quarter          Quarter         Quarter
----------------------------------------------------------------
Net sales                 282.2            198.4           252.5
EBITDA                     44.9             21.1            40.1
EBITDA margin - %          15.9 %           10.7 %          15.9 %
Operating earnings         26.2              4.7            23.2
Net earnings                8.3              2.3             8.9
Per share                  0.17             0.05            0.18
-----------------------------------------------------------------

*T

      Note: EBITDA is Earnings Before Interest, Taxes, Depreciation and
Amortization. EBITDA margin is the ratio of EBITDA divided by net
sales.

OPERATING EARNINGS

2000 1st quarter compared to 1999 1st quarter

      For the first quarter of 2000, operating earnings amounted to
$26.2 million compared to operating earnings of $4.7 million for the
corresponding quarter in 1999, an increase of $21.5 million. The
operating earnings improvement is mainly attributable to higher net
price realizations for paperboard and corrugated products, which were
respectively 28 % and 20 % higher than the corresponding period in
1999. Paperboard cash manufacturing costs were higher due to increases
of virgin fibre, Old Corrugated Container (OCC) and fuel costs, which
totalled $10.2 million. The La Tuque mill's manufacturing costs were
also impacted by a 10-day shutdown to complete the machine
modifications related to the lightly clay-coated white top project.
Selling and administrative expenses were $11 million higher,
reflecting the expense of the acquired packaging facilities, the new
e-commerce business, the supply chain management program
implementation and extensive containerboard branding advertising
campaign costs.
      Corrugated container operating earnings, before the Columbus,
Pickering and e-commerce results, increased to $6.6 million from $3.6
million for the same quarter in 1999. The improvement is attributable
to the strong performance of the Milwaukee and Castle Rock Container
facilities. The operating losses of the Columbus and Pickering
facilities and the start-up costs of the e-commerce initiative
amounted to $3.7 million.
      The Canadian dollar strengthened by 4.0 % compared to the
corresponding quarter in 1999 thus increasing manufacturing costs
denominated in Canadian dollars by $2.2 million or $6 per ton. The
Company's currency hedging and commodity price programs resulted in an
opportunity loss of $1.1 million, a reduction of $1.3 million compared
to the corresponding quarter in 1999.

*T

Table 2 - Operating earnings variances
2000 1st quarter compared to 1999 1st quarter
(In millions of US dollars)
--------------------------------------------------------------------
VARIANCE   Positive (Negative)
--------------------------------------------------------------------
                               Mill    Converting     Other    Total
--------------------------------------------------------------------
Net price realization
 on all products              35.9           14.1      2.0      52.0
Cost reduction (increase)    (11.0)         (12.6)    (1.5)    (25.1)
Volume increase (decrease)    (1.5)           8.1      0.4       7.0
Commodity and currency         0.8                               0.8
Selling and administration    (2.1)          (8.9)    ----     (11.0)
Depreciation                  (0.4)          (1.4)    (0.4)     (2.2)
--------------------------------------------------------------------
Total                         21.7           (0.7)     0.5      21.5
--------------------------------------------------------------------

*T

2000 1st quarter compared to 1999 4th quarter

      For the first quarter of 2000, operating earnings totalled $26.2
million compared to $23.2 million for the fourth quarter of 1999, an
increase of $3.0 million. The primary mill operating earnings were
$4.0 million higher than the fourth quarter due to higher selling
prices. This positive variance was partially offset by higher
manufacturing costs at the La Tuque mill related to the 10-day
shutdown to complete the clay-coated project. The Matane, Quebec mill
manufacturing costs were also higher attributable to six days downtime
to make machine modifications which provide the ability to produce
lighter weight corrugating medium (23 lbs/msf).
      Packaging operating earnings were $1.7 million higher compared to
the fourth quarter of 1999. This increase is attributable to higher
selling prices, lower operating costs and to the inclusion, for the
entire quarter, of the Eastern Container results that were
consolidated with the Company's results for one month only in the
fourth quarter of 1999. The higher selling and administrative expenses
are attributable to Eastern Container's results and to the costs
associated with setting up the new e-commerce packaging subsidiary.

*T

Table 3 - Operating earnings variances
2000 1st quarter compared to 1999 4th quarter
(In millions of US dollars)
--------------------------------------------------------------------
VARIANCE   Positive (Negative)
--------------------------------------------------------------------
                               Mill    Converting     Other    Total
--------------------------------------------------------------------
Net price realization
 on all products                4.9          2.9        0.6      8.4
Cost reduction (increase)      (2.0)         1.8       (3.4)    (3.6)
Volume increase (decrease)     (0.5)         3.2        0.0      2.7
Commodity and currency          0.9                              0.9
Selling and administration      1.0         (4.7)       0.0     (3.7)
Depreciation                   (0.3)        (1.5)       0.1     (1.7)
---------------------------------------------------------------------
Total                           4.0          1.7       (2.7)     3.0
---------------------------------------------------------------------

*T

LIQUIDITY AND CAPITAL EXPENDITURES

      During the first quarter, cash provided by operating activities
was $30.3 million, compared to $25.8 million for the corresponding
quarter in 1999. The $4.5 million increase is attributable to
profitability improvement. Capital expenditures were $23.2 million
compared to $6.2 million for the first quarter of 1999. The increase
in capital expenditures in the first quarter is mostly attributable to
the La Tuque lightly clay-coated white top project as well as the
transfer of a state-of-the-art corrugator to the greenfield sheet
feeder plant currently under construction in the greater Toronto area.

EMPLOYEE FUTURE BENEFITS - NEW ACCOUNTING RULE

      In March 1999, the Canadian Institute of Chartered Accountants
("CICA") released new accounting rules regarding employee future
benefits under section 3461 of the CICA Handbook. The most significant
change is the requirement to discount pension obligations using a
market rate of interest instead of using a long-term expected rate of
return on plan assets. The cumulative impact of the change increased
the pension plan liability by $28.9 million and decreased the retained
earnings and deferred income taxes by $19.6 million and $9.3 million
respectively.

OUTLOOK

      Price increases of $50 per ton for kraft and white top linerboard
and $60 per ton for corrugating medium announced for February 1st
shipments will be fully realized during the second quarter. A box
price increase of 12 % announced for April 1st shipments will be
implemented during the second quarter. The outlook for 2000 is
positive as the growth of the North American economy is trending up.

MERGER WITH SMURFIT-STONE CONTAINER CORPORATION

      The merger with Smurfit-Stone Container Corporation is expected to
be completed by early June.

                          **************************************

      St. Laurent Paperboard is a major North American producer,
supplier and converter of high-quality, value-added paperboard
substrates and packaging solutions, with more than 4,500 employees
serving a diverse customer base in North America and selected
international markets.

      St. Laurent Paperboard owns four primary mills, located in La
Tuque and Matane, Quebec; in Thunder Bay, Ontario; as well as in West
Point, Virginia, with an aggregated annual paperboard production
capacity of approximately 1.5 million short tons. It also owns
seventeen packaging facilities located in Canada and the United States
as well as 920,000 acres of forest land, the largest freehold in
Quebec.

      The Company's common shares are listed on the Toronto stock
exchange under the trading symbol "SPI" as well as on the New York
Stock Exchange (NYSE) under "SLW".

      Note: All amounts are expressed in US dollars unless otherwise
stated.

*T

ST. LAURENT PAPERBOARD INC.
CONSOLIDATED STATEMENT OF EARNINGS AND RETAINED EARNINGS
(unaudited)
(in thousands of US dollars, except per share amounts)

                                       First quarter   Fourth quarter
                                           ended            ended
                                          March 31       December 31
                                     2000        1999        1999
---------------------------------------------------------------------

Sales                            $300,110    $216,475    $270,195
Cost of delivery                   17,921      18,051      17,667
---------------------------------------------------------------------
Net sales                         282,189     198,424     252,528
---------------------------------------------------------------------
Cost of sales                     213,621     164,592     192,374

Selling and administrative
 expenses                          23,694      12,687      20,011
Amortization                       18,631      16,435      16,966
---------------------------------------------------------------------
                                  255,946     193,714     229,351
---------------------------------------------------------------------
Operating earnings                 26,243       4,710      23,177
Interest expense, net               8,193       7,057       7,932
Other expense (income)              3,373      (4,816)        414
---------------------------------------------------------------------
Earnings before income taxes       14,677       2,469      14,831
Provision for income taxes          6,207         479       5,137
---------------------------------------------------------------------
                                    8,470       1,990       9,694
Earnings from equity investment /
 Minority interests                  (137)        285        (782)
---------------------------------------------------------------------
Net earnings                        8,333       2,275       8,912
---------------------------------------------------------------------
---------------------------------------------------------------------
Net earnings per common share
  Basic                              0.17        0.05        0.18
---------------------------------------------------------------------
---------------------------------------------------------------------
  Fully diluted                     $0.17       $0.05       $0.18
---------------------------------------------------------------------
---------------------------------------------------------------------


Retained earnings at beginning
 of period                        $40,106      $1,769     $31,194

Employee Future Benefits
 transitional amount              (19,643)          -           -

Net earnings                        8,333       2,275       8,912
---------------------------------------------------------------------
Retained earnings at end
 of period                        $28,796      $4,044     $40,106
---------------------------------------------------------------------
---------------------------------------------------------------------

Weighted average number of
 outstanding common shares
 (in thousands)                    49,559      49,264      49,382
---------------------------------------------------------------------
---------------------------------------------------------------------



ST. LAURENT PAPERBOARD INC.
CONSOLIDATED STATEMENT OF CHANGES IN CASH POSITION
(unaudited)
(in thousands of US dollars)

                                       First quarter   Fourth quarter
                                          ended             ended
                                         March 31        December 31
                                     2000        1999        1999
---------------------------------------------------------------------

Cash provided by (used in)
Operating activities
  Net earnings                     $8,333      $2,275      $8,912
  Items not involving cash
    Amortization of property,
     plant and equipment,
     start up, deferred costs and
     goodwill                      18,631      16,435      16,966
    Amortization of debt
     issue costs                      510         399         259
    Future income taxes             5,456         185       4,983
    Loss (gain) on sale of
     property, plant and equipment    185      (4,553)          6
    Other                             135        (222)       (373)
  Start-up and other deferred
   costs incurred                  (1,511)       (691)      1,151
  Post retirement expense,
   net of funding                    (378)      1,041       2,152
  Earnings from equity investment /
   Minority interests                 137        (285)        782
---------------------------------------------------------------------
                                   31,498      14,584      34,838

  Change in non-cash working
   capital relating to operations
    Accounts receivable            (6,120)     (9,674)      7,375
    Inventory                      (4,732)      8,345      (1,305)
    Prepaid expenses                7,445       1,464       6,048
    Accounts payable and accruals   2,597      11,092        (237)
    Income and other taxes payable   (425)        (42)       (453)
---------------------------------------------------------------------
                                   (1,235)     11,185      11,428
---------------------------------------------------------------------
  Cash provided by operating
   activities                      30,263      25,769      46,266
---------------------------------------------------------------------

Investing activities
  Equity investment                     -      (9,607)          -
  Business acquisitions                 -           -     (21,403)
  Additions to property, plant and
   equipment                      (23,245)     (6,204)    (26,432)
  Proceeds from disposals of
   property, plant and equipment      142       5,655       2,254
---------------------------------------------------------------------
                                  (23,103)    (10,156)    (45,581)
---------------------------------------------------------------------

Financing activities
  Issuance of common shares,
   net of expenses                  3,318         333         288
  Minority interests                  729           -         700
  Issuance of long-term debt        8,790          70         362
  Repayment of long-term debt      (9,561)        (24)     (9,434)
  Debt issue costs                     19        (127)         66
---------------------------------------------------------------------

                                    3,295         252      (8,018)
---------------------------------------------------------------------

Increase (decrease) in cash        10,455      15,865      (7,333)

Cash and cash equivalents at
 beginning of period               14,891      (3,519)     22,224
---------------------------------------------------------------------
Cash and cash equivalents at end
 of period                        $25,346     $12,346     $14,891
---------------------------------------------------------------------
---------------------------------------------------------------------

Cash and cash equivalents
  Cash on hand                     22,225       6,713       9,125
  Temporary investments             3,121       5,633       5,766
---------------------------------------------------------------------
                                  $25,346     $12,346     $14,891
---------------------------------------------------------------------
---------------------------------------------------------------------


ST. LAURENT PAPERBOARD INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands of US dollars)
                                                     March 31
                                                 2000        1999
---------------------------------------------------------------------
ASSETS

Current assets
  Cash and temporary investments              $25,346     $12,346
  Accounts receivable                         130,399     105,570
  Income and other taxes receivable             5,217       4,912
  Inventories                                 111,213      90,196
  Prepaid expenses                              6,539      12,367
---------------------------------------------------------------------
                                              278,714     225,391

Property, plant and equipment                 822,530     765,413

Future income taxes                                 -       9,136

Deferred charges and other assets              33,008      40,248

Goodwill                                       39,783      19,649
---------------------------------------------------------------------
                                           $1,174,035  $1,059,837
---------------------------------------------------------------------
---------------------------------------------------------------------


LIABILITIES

Current liabilities
  Accounts payable and accrued liabilities    105,443      83,203
  Current portion of long-term debt            48,167       5,953
---------------------------------------------------------------------
                                              153,610      89,156

Long-term debt                                336,735     356,558

Future income taxes                            14,501       7,247

Other liabilities                              61,196      28,157


SHAREHOLDERS' EQUITY

  Common shares                               576,789     572,267
  Contributed surplus                           2,408       2,408
  Retained earnings                            28,796       4,044
---------------------------------------------------------------------
                                              607,993     578,719
---------------------------------------------------------------------
                                           $1,174,035  $1,059,837
---------------------------------------------------------------------
---------------------------------------------------------------------



ST. LAURENT PAPERBOARD INC.
SEGMENTED INFORMATION
(unaudited)
(in thousands of US dollars)                   First quarter ended
                                                     March 31
                                                 2000        1999
---------------------------------------------------------------------
Net sales to third parties
 From Canada
  Within Canada                               $37,496     $27,238

  To the United States                         52,312      45,525

  Other                                         5,257      10,586
---------------------------------------------------------------------

                                              $95,065     $83,349

  From the United States                      187,124     115,075
---------------------------------------------------------------------

                                             $282,189    $198,424
---------------------------------------------------------------------
---------------------------------------------------------------------

Intercompany sales between geographic areas
  From Canada                                  $8,146      $3,018

  From the United States                          558         225
---------------------------------------------------------------------

                                               $8,704      $3,243
---------------------------------------------------------------------
---------------------------------------------------------------------

Operating earnings
  Canada                                      $10,443      $2,649

  United States                                15,800       2,061
---------------------------------------------------------------------

                                              $26,243      $4,710
---------------------------------------------------------------------
---------------------------------------------------------------------

Identifiable assets
  Canada                                     $444,127    $450,674

  United States                               729,908     609,163
---------------------------------------------------------------------

                                           $1,174,035  $1,059,837
---------------------------------------------------------------------
---------------------------------------------------------------------


ST. LAURENT PAPERBOARD INC.
SUMMARY OF OPERATIONS
(unaudited)
(in thousands of US dollars, except for units)

                                                Woodlands,
                                               Solid Wood
First Quarter ended       Primary            and unallocated
March 31, 2000              mills  Converting    amounts       Total
---------------------------------------------------------------------

Net sales to
 third parties           $134,819    $133,674    $13,696    $282,189
Inter-segment sales        31,744           -          -      31,744
---------------------------------------------------------------------
Total                    $166,563    $133,674    $13,696    $313,933

EBITDA                     38,193       6,410        271      44,874

Amortization               14,401       3,474        756      18,631

Operating earnings (loss)  23,792       2,936       (485)     26,243

Identifiable assets       764,941     345,428     63,666   1,174,035

Additions to property,
 plant and equipment       10,163      12,759        323      23,245

Sales to third parties
 (short tons)             305,392           -          -
Sales to third parties -
 corrugated containers
 (MMSF)                         -       1,744          -
Sales to third parties -
 liquid and food (short
 tons)                          -      20,729          -
Inter-segment sales
 (short tons)              72,868           -          -


                                                Woodlands,
                                               Solid Wood
First Quarter ended       Primary           and unallocated
March 31, 1999              mills  Converting    amounts       Total
---------------------------------------------------------------------

Net sales to third
 parties                 $119,521     $75,271     $3,632    $198,424
Inter-segment sales        18,338           -          -      18,338
---------------------------------------------------------------------
Total                    $137,859     $75,271     $3,632    $216,762

EBITDA                     16,052       5,629       (536)     21,145

Amortization               13,994       2,034        407      16,435

Operating earnings (loss)   2,058       3,595       (943)      4,710

Identifiable assets       785,028     188,866     85,943   1,059,837

Additions to property,
 plant and equipment        3,783       2,246        175       6,204

Sales to third parties
 (short tons)             349,497           -          -
Sales to third parties -
 corrugated containers
 (MMSF)                         -       1,266          -
Sales to third parties -
 liquid and food (short
 tons)                          -      16,184          -
Inter-segment sales (short
 tons)                     51,354           -          -

*T

      --30--se/in*

    CONTACT: ST. LAURENT PAPERBOARD INC.
             Mr. Richard Garneau, 514/864-5102
             Website: www.stlaurent.com

      KEYWORD: INTERNATIONAL CANADA
    INDUSTRY KEYWORD: FOREST PRODUCTS E-COMMERCE EARNINGS