RICHMOND, Va., Feb. 27 /PRNewswire/ -- James River Corporation (NYSE: JR)
announced today that it has signed a definitive agreement with the Hancock
Timber Resource Group, an investment unit of John Hancock Mutual Life
Insurance Company, of Boston, Massachusetts, for the sale of approximately
95,000 acres of timberlands in Alabama and Mississippi.  In consideration for
the sale, James River will receive in excess of $110 million in cash, subject
to normal closing adjustments.  The sale is expected to generate a gain and is
scheduled to close in April, subject to normal closing conditions.
    The company has also signed a long-term wood supply agreement with the
Hancock Timber Resource Group.  Under this agreement, James River will have
certain cutting rights on these lands to provide pulpwood to the company's
Naheola mill in Pennington, Ala.  The Naheola mill is one of James River's
largest manufacturing facilities, producing a wide range of consumer towel and
tissue products, as well as bleached paperboard used in making Dixie cups and
plates and folding cartons.  The majority of the timberlands being sold are
located within 35 miles of the Naheola mill, and they currently provide the
mill with a small percentage of its annual wood requirements.
    "In the continuing review of our portfolio of assets, we determined that
ownership of these timberlands was not essential to the success of our
consumer products and packaging businesses.  This transaction provides an
opportunity to improve our financial flexibility, while assuring a long-term
supply of wood to the Naheola mill," said Miles L. Marsh, James River's
chairman and chief executive officer.
    On a short-term basis, proceeds from the sale are expected to be used to
reduce debt.  However, the company is currently studying a number of
alternatives to simplify its capital structure, including the possible
redemption, conversion or exchange of certain of its outstanding series of
preferred stocks, in which these proceeds could be utilized.
    James River relies primarily on long-term cutting rights, leases, supply
contracts and a Canadian forest license to meet its pulpwood and wood chip
needs.  Following the completion of this sale, James River will own
approximately 140,000 acres of timberlands in Maine, as well as a 10,000 acre
hybrid cottonwood plantation in the Pacific Northwest.
    James River Corporation, headquartered in Richmond, Va., is a leading
marketer and manufacturer of paper-based consumer products and packaging.  The
company markets such well-known brands as Quilted Northern bathroom tissue,
Brawny paper towels, and Dixie cups and plates in North America; and Lotus
towel, tissue and foodservice products, as well as other strong regional
brands in Europe.  James River is a technological leader in designing
innovative packaging for a wide variety of food and consumer products,
including Quilt-Rap sandwich wrap and Qwik Wave microwave packaging.  The
company is also a leading supplier of communications papers in the western
United States, where it markets brands such as Eureka! and Word Pro office and
printing papers.  James River's current annual sales rate is approximately
$5.5 billion.
    Today's news release, along with past releases from James River, is
available by fax, at no charge, by calling 800-758-5804, ext. 457350.
You may access James River's corporate-wide site at Internet address
http://www.jamesrivercorp.com.

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