Union Camp Strengthens Latin America Presence.

WAYNE, N.J.--(BUSINESS WIRE)--Feb. 26, 1998--

Affiliate Zucamor SA part of consortium that acquires Argentina's

only virgin kraft producer

Zucamor SA, in which Union Camp holds an equity interest, and BI SA, an Argentine investment firm which is led by the Bemberg Group, have acquired Argentina's only virgin kraft paper producer, Papel Misionero SA, from the Province of Misiones. The transaction is part of the Argentine government's continuing privatization program.

Papel Misionero SA is located in the northeastern province of Misiones, where it employs 370 people who manufacture 80 thousand metric tons per year of kraft liner and flat kraft paper for multiwall sacks.

The joint venture partners said that they plan to make a significant capital investment in the acquired business. "We will be making these investments to improve what is an already strong product line and to increase our production capacity," said Gustavo Herrero, Zucamor's managing director and the newly elected president of Papel Misionero.

"Union Camp has identified South America as an area for long-term growth," said W. Craig McClelland, Union Camp's chairman and chief executive officer. "Our support of Zucamor in this acquisition is another building block in our strategy to efficiently build our presence in one of the faster-growing regions of the world."

Zucamor operates three plants throughout Argentina, employing 600 people, with annual sales exceeding $60 million. Union Camp Corporation, based in Wayne, New Jersey, is a leading manufacturer of paper, packaging, chemicals and wood products and ranks among the nation's 200 largest industrial companies. In addition to its investment in Zucamor S.A., Union Camp owns a majority interest in Puntapel S.A., a leading manufacturer of multiwall sacks in Argentina, and operates a corrugated box plant in Rancagua, Chile.

CONTACT: Bill Summers [phone]