The Company Plans to Close Three Folding Carton Plants as Operating Optimization Continues

MARIETTA, Ga., Aug. 12 /PRNewswire-FirstCall/ -- Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), today announced that it plans to close several folding carton facilities and transition business to other U.S. operating locations as it continues to aggressively implement integration plans to achieve previously announced operating synergies.

Additionally, Graphic Packaging has recently reorganized sales and operations in its specialty inks and coatings business to further drive completion of its integration goals by 2010. These changes also ensure that customers are reliably supported from a solid network of efficient, low-cost facilities.

The Company's carton facilities in Greensboro, North Carolina and Richmond, Virginia, are expected to discontinue production around the end of 2008, and the folding carton plant in Smyrna, Tennessee, is expected to close during first quarter of 2009. The Company will also close its Handschy(R) ink and coatings sales office in Grand Rapids, Michigan, and its ink manufacturing operations in Indianapolis, Indiana, by the end of August. The Handschy business will be transitioned to other Handschy facilities.

'We are working very aggressively to integrate assets, streamline our operating footprint and achieve announced synergies of a minimum of $90 million, all of which will ultimately make us a more successful company, and better able to reduce debt and sustain our competitive market position,' said David W. Scheible, president and chief executive officer of Graphic Packaging International, Inc. 'Our challenge, in what continues to be a difficult operating environment, remains to re-align and optimize our increased scope of operations and make our packaging business the lowest cost in the industry. I believe we are making significant and steady progress, and the impact will continue to strengthen our earnings position.'

Forward-looking Statements

Any statements of the Company's expectations in this press release constitute 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. Such statements, which include statements regarding facility closures, transition of business to other locations and our ability to achieve $90 million of annualized synergies by 2010, are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, the Company's substantial amount of debt, inflation of and volatility in raw material and energy costs, continuing pressure for lower cost products, the Company's ability to implement its business strategies, including productivity initiatives and cost reduction plans, currency movements and other risks of conducting business internationally, and the impact of regulatory and litigation matters. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements. Additional information regarding these and other risks is contained in the Company's periodic filings with the SEC.

About Graphic Packaging International, Inc.

Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), headquartered in Marietta, Georgia, is a leading provider of paperboard packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. The company's customers include some of the most widely recognized companies in the world. Additional information about Graphic Packaging, its business and its products is available on the company's web site at www.graphicpkg.com .

SOURCE Graphic Packaging International, Inc.