Georgia-Pacific and Boralex Close on Sale of Athens, Maine Biomass Generation Facility

Old Town, Maine, May 5, 2004 – Georgia Pacific Corp. and Boralex Inc. announced today that the parties have closed on the sale of Boralex Athens Energy Inc., Maine biomass generation facility to Georgia-Pacific. The power plant’s assets will be relocated to Georgia-Pacific’s mill in Old Town, Maine, completing an important step in the plan established by the State of Maine and Georgia-Pacific to reduce energy costs at the Old Town mill.

The transaction is another step in the course that was established by an act of the Maine Legislature last year, when it passed a Resolve authorizing the State of Maine to purchase the West Old Town Landfill and select an operator to run the facility producing the funds necessary for the biomass project.

This closing follows the announcement in February that Casella Waste Systems and the State of Maine entered into an Operating Services Agreement authorizing Casella to operate the West Old Town Landfill. GP received $26 million from the sale of the landfill to the State and is using those funds to purchase and re-install the biomass boiler, which will lower its energy costs – one of the biggest obstacles to the mill’s economic viability.

Ralph Feck, Vice-President – Old Town mill said, “This is a final step in a process that reflects public/private partnership at its finest. Without the cooperation of the State, Boralex, Casella and union support, the Old Town mill, and its 450 jobs would have been at risk. The creativity and persistence of all parties to this complex transaction was the key to this success.”

Claude Audet, President and Chief Operating Officer – Boralex said “The sale of the assets of the Athen’s facility, which has been shut down for the last two years, is in line with the implementation of Boralex’s strategic plan aimed at maximizing the performance of its U.S. wood-residue power stations and will benefit the Old Town mill operations.”


Boralex focus on four types of power generation: hydroelectric power, thermal or cogeneration power from natural gas or wood residue and wind power. These are all fields where Boralex has developed proven expertise and they are all centered on renewable energy. It employs more than 240 workers and owns seventeen power stations located in Québec, the United States and France, with an installed capacity of close to 240.0 MW, as well as an urban wood processing and recycling centre in Montréal. In addition, the Corporation holds a 23% interest in Boralex Power Income Fund which owns ten power stations in Québec and the United States with an installed capacity of 190.0 MW. Management of the Fund‘s assets is provided by Boralex. (www.boralex.com)


Headquartered at Atlanta, Georgia-Pacific is one of the world’s leading manufacturers and marketers of tissue, packaging, paper, building products, pulp and related chemicals. With 2003 annual sales of more than $20 billion, the company employs approximately 60,000 people at 400 locations in North America and Europe. Its familiar consumer tissue brands include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Soft 'n Gentle®, Mardi Gras®, So-Dri®, Green Forest® and Vanity Fair®, as well as the Dixie® brand of disposable cups, plates and cutlery. Georgia-Pacific’s building products business has long been among the nation’s leading suppliers of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers. The Old Town mill manufactures Quilted Northern® and Vanity Fair®, and employs approximately 450 employees. For more information, visit www.gp.com.

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For further information, please contact:


Rick Douglas
Georgia-Pacific Corporation
Old Town Mill
(207) 827-0610


Robert Burns
Georgia-Pacific Corporation
Atlanta
(404) 652-4794