Graphic Packaging and Altivity Merge

The transaction is expected to be accretive to Graphic Packaging’s earnings per share and free cash flow (defined as cash provided by operating activities less capital spending) by 2008, prior to one-time costs of achieving synergies.

The transaction is expected to be completed in the fourth quarter of 2007, subject to customary shareholder and regulatory approvals. The transaction has been approved by the Boards of Directors of both companies. Affiliates of TPG Capital, who control and own the majority of Altivity Packaging, have agreed to the transaction, and Graphic Packaging’s three largest shareholders, who on a combined basis control more than 60 percent of Graphic Packaging’s outstanding common stock, have agreed to vote in favor of the merger.