Graphic Packaging and Altivity Merge

As a result of the transaction, the new company projects it will achieve annual gross merger synergies of over $90 million expected to be fully realized by 2011, with approximately two-thirds realized by 2009. Although restructuring charges are anticipated to result from the integration, the new company is expected to generate cash flow from synergies in excess of the cash payments used for restructuring charges in each year. Such synergies are expected to be achieved through operating expense reductions, supply chain procurement changes, mill optimization efforts and manufacturing process improvements.