Shorewood to Sell Interest in China Plant to Westvaco

Shorewood Packaging Corp. has entered into a definitive agreement to sell to Westvaco Corp. a 45% interest in its new 125,000 sqft folding carton facility in Guangzhou, China. As announced by both companies on September 9, 1998, Westvaco will pay Shorewood approximately $25 million at closing, which represents 45% of the facility's cost plus an additional $5 million. Day-to-day management of the operation will be under the direction of Shorewood. Moreover, this agreement allows both companies to leverage off each other's marketing and new product development expertise.

This transaction, subject to closing conditions, is expected to be completed during Shorewood's fiscal 1999 third quarter, which ends on January 30, 1999. Shorewood Packaging Corp. is a value-added provider of high-quality printing and paperboard packaging for the cosmetics, food, home video, music, software, tobacco and toiletries and general consumer markets in North America and China.