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FEDERAL PAPER BOARD REPORTS FIRST QUARTER RESULTS

 FEDERAL PAPER BOARD REPORTS
 FIRST QUARTER RESULTS
 MONTVALE, N.J. April 8 /PRNewswire/ -- Federal Paper Board Company, Inc. (NYSE: FBO) today announced sales and earnings for the first quarter of 1992. Sales for the twelve weeks ended March 21, 1992 were $323.0 million compared to $334.1 million last year. Net income was $16.8 million or $.36 per fully diluted common share, compared to $27.9 million or $.61 per fully diluted common share for the first quarter of 1991. The slight decline in sales reflects the impact from the 1991 disposal of four packaging and printing plants. Additionally, the first quarter of 1991 included a non-recurring after-tax gain of approximately $5 million or $.07 per fully diluted common share from the sale of the Mechanical Packaging Operation.
 John R. Kennedy, President, stated, "First quarter results were what we expected considering the downtime associated with capital projects at the Company's Augusta, Ga., and Tait mill in Scotland and downtime for the rebuild of a recovery boiler at the Riegelwood, N.C. mill. All these projects have been completed and successfully started-up by quarter-end. We have begun to see signs of improvement in our business. Market pulp price increases were successfully implemented in late 1991 and in the first quarter of 1992. Additional price increases for both export and domestic market pulp were announced to be effective in April 1992. Our bleached paperboard orders and backlogs improved throughout the first quarter and overall industry backlogs are also improving. Lumber prices for the first quarter increased almost $40 per thousand board foot, compared to the fourth quarter of 1991. In Europe, our Thomas Tait & Sons subsidiary has announced a price increase for its uncoated free-sheet paper which will take effect this April. This price increase should partially relieve the adverse market conditions in Europe."
 Mr. Kennedy added, "New production records were set in March at the Augusta, Ga. mill for both the overall mill and for the No. 1 paperboard machine. Our lumber mills not only are benefitting from recent price increases but have also experienced improved operating efficiencies."
 The Company has been advised that the purported class action suit filed earlier this year in Jefferson County, Texas, has been voluntarily dismissed, without prejudice, by the plaintiffs. The suit related to the alleged discharge of dioxin and other chlorinated hydrocarbons in effluent from certain pulp and paper mills in the United States. The Company had been named a defendant along with 32 other pulp and paper companies and the American Paper Institute.
 Federal Paper Board Company, Inc., manufactures and sells solid bleached paperboard, bleached market pulp, recycled paperboard, paper and plastic cups, folding cartons, lumber and, in the European market, uncoated free-sheet paper. The Company operates two bleached kraft paperboard and pulp mills, one recycled paperboard mill, four sheeting and distribution centers, six cup converting plants, four folding carton plants and five wood products mills in the United States and one uncoated free-sheet paper mill in the United Kingdom. Federal has approximately 6,900 employees.
 FEDERAL PAPER BOARD COMPANY, INC.
 PRELIMINARY RESULTS
 INDUSTRY SEGMENT INFORMATION
 (In millions)
 For the Twelve
 Weeks Ended
 Mar. 21, Mar. 23,
 1992 1991
 NET SALES:
 Paper, Paperboard and Pulp $230.9 $228.1
 Wood Products 42.0 29.1
 Converting Operations 73.0 103.9
 Intersegment Eliminations (22.9) (27.0)
 Total $323.0 $334.1
 INCOME BEFORE TAXES:
 Paper, Paperboard and Pulp $ 40.1 $ 57.1
 Wood Products 6.7 0.7
 Converting Operations 4.4 9.1
 Intersegment Eliminations 1.3 (0.6)
 General Corporate Expense - Net (6.4) 0.8
 Interest Expense (17.8) (20.1)
 Total $ 28.3 $ 47.0
 FEDERAL PAPER BOARD COMPANY, INC.
 PRELIMINARY RESULTS
 CONSOLIDATED STATEMENT OF INCOME
 (In millions except per share amounts)
 For the Twelve
 Weeks Ended
 Mar. 21, Mar. 23,
 1992 1991
 NET SALES $323.0 $334.1
 Costs and Expenses:
 Cost of Products Sold 231.3 230.3
 Depreciation, Amortization
 & Cost of Timber Harvested 31.2 27.2
 Selling and Administrative
 Expenses 15.4 14.4
 Interest Expense 17.8 20.1
 Other - Net (1.0) (4.9)
 Total Costs and Expenses 294.7 287.1
 INCOME BEFORE TAXES 28.3 47.0
 Provision for Income Taxes 11.5 19.1
 NET INCOME 16.8 27.9
 AVERAGE COMMON SHARES OUTSTANDING:
 Assuming No Dilution 40.8 40.2
 Assuming Full Dilution(A) 41.7 46.1
 EARNINGS PER COMMON SHARE:
 Assuming No Dilution $0.37 $0.65
 Assuming Full Dilution(A) $0.36 $0.61
 (A) Earnings per common share assuming full dilution for 1992 does not assume the conversion of the Company's $2.875 convertible preferred stock as the effect is anti-dilutive.
 -0- 4/8/92
 /CONTACT: Quentin J. Kennedy, Executive Vice President of Federal Paper Board Company, Inc., 201-391-1776/
 (FBO) CO: Federal Paper Board Company Inc. ST: New Jersey IN: PAP SU: ERN


SH -- NY020 -- 6097 04/08/92 09:19 EDT
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