ATLANTA, Georgia. March 30, 2001 --
Georgia-Pacific Corp. today announced it will permanently close its already-idled pulp mill and associated chemical plant at Bellingham, Wash., following a review of their long-term viability. Those operations have been temporarily closed since December due to high electric power costs.

The adjoining tissue paper and converting facilities at Bellingham will continue operating with temporary electric generators while Georgia-Pacific searches for other sources of affordable electric power. The tissue operations will be included in the continuing integration analysis of Georgia-Pacific and former Fort James operations as the company seeks to maximize synergies across its consumer products manufacturing system. The tissue paper and converting operations have been powered by temporary generators since January.

"This decision was driven primarily by the high cost of the pulp operations at Bellingham compared with the lower-cost pulp available within the Georgia-Pacific system, including additional pulp supplies now available from mills acquired in the Fort James deal," said Lee M. Thomas, executive vice president - consumer products. "The current, unanticipated West Coast energy crisis has significantly raised the cost of energy for the mill and, beginning in December, caused the shutdown of the pulp mill and other operations within the facility. The decision has been made to permanently close the pulp mill and chemical facilities now versus sometime in the future."

"This closure is in no way a reflection on the employees at Bellingham," Thomas said. "They have shown tremendous dedication through this trying situation."

The closure will affect approximately 420 employees, many of whom have been laid off since December. The tissue paper and converting facilities will continue being operated by the remaining workforce of approximately 330 employees. The Bellingham pulp mill produced approximately 220,000 tons of pulp, including 135,000 tons of sulfite market pulp, and 260,000 tons of lignin annually. The tissue mill produces approximately 93,000 tons of tissue annually.