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BOISE CASCADE ANNUAL MEETING REMARKS

 BOISE CASCADE ANNUAL MEETING REMARKS
 BOISE, Idaho, April 23 /PRNewswire/ -- In his remarks to


shareholders and employees at Boise Cascade's (NYSE: BCC) annual meeting on April 23, John B. Fery, chairman of the board and chief executive officer, discussed the deterioration in the company's performance in 1991 and first quarter 1992 and reviewed the company's plans for improved performance and cash flow in the future.
 "Boise Cascade faces three major issues," Fery said. "First is the difficult market for our particular product mix in paper, which is heavy to business, printing and publishing grades. These grades have suffered the greatest price deterioration in this cyclical and economic downturn. Our second issue is high wood costs in the Pacific Northwest due to the preservationist-induced reduction in the amount of timber available for harvest, which has caused wood chip costs for our Northwest pulp and paper mills to skyrocket. And the third issue is our high interest and depreciation charges associated with more than $2 billion of capital investment since 1987."
 Fery said that, as difficult as this period is, he is optimistic about the future because of the company's many strengths. "We are in the right businesses for the long term," he said, "despite the penalty we have paid in this cycle for our business mix in paper. The capital we've invested is a source of future strength. Our raw material base -- 6.1 million acres of timberland owned or controlled in four major timber-producing regions of the U.S. and Canada -- is certainly a strength. And our people, always essential to the company's success, are becoming an even greater strength as they join together in the teamwork that characterizes Total Quality."
 And, finally, Fery spoke of the coming upturn. "All three of our business segments -- paper, office products and building products -- are beginning to turn up. Positive trends in the economy are already having a favorable impact on our building products business. As the economy improves, office products distribution should resume its strong long-term growth trend. Demand for paper products will lag economic improvement somewhat, and we expect another very difficult quarter. But, in time, demand for paper products should continue to grow and come into better balance with supply."
 Also addressing shareholders at today's meeting was George J. Harad, president and chief operating officer. He discussed several areas of achievement, including major company investments in the International Falls, Minn., and Rumford, Maine, pulp and paper facilities, the company's move into recycled papers, the divestiture of its wholesale office products distribution operations as a means of facilitating national growth in the consumer channel, and its investment in laminated veneer lumber. "These are among the constructive steps the company is taking that will make a significant positive difference in the company's financial performance in the years ahead," he said.
 Boise Cascade Corp. is an integrated paper and forest products company headquartered in Boise, with operations located in the United States and Canada. The company manufactures and distributes paper and paper products, office products and building products, and owns and manages timberland to support these operations.
 -0- 4/23/92
 /CONTACT: Vincent Hannity of Boise Cascade, 208-384-6390, or after hours, 208-345-8141/
 (BCC) CO: Boise Cascade Corp. ST: Idaho IN: PAP SU: ECO


SC -- SE007 -- 1934 04/23/92 13:20 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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