RICHMOND, Va., July 17 /PRNewswire/ -- James River Corporation (NYSE: JR)
announced today that it is calling for redemption on September 2, 1997, all of
the outstanding shares (and related depositary shares) of its Series P 9%
Cumulative Convertible Preferred Stock. The Series P preferred stock will be
redeemed using common stock at a conversion ratio of .9206 shares of common
stock for each Series P depositary share.
    The Series P preferred stock is held in the form of depositary shares,
with each depositary share representing a one-hundredth interest in a
preferred share.  All of the approximately 16.5 million outstanding Series P
depositary shares will be redeemed for approximately 15.2 million James River
common shares.  Cash will be paid in lieu of fractional shares.  No dividends
on the Series P depositary shares will be paid or payable for the period from
July 2, 1997, to September 1, 1997.  Holders continue to have the option to
convert the Series P depositary shares into common stock at any time before
the close of business on September 2, 1997, at the same rate of .9206 common
shares for each depositary share.
    Written notice of the specific terms of and instructions for the
redemption of the Series P depositary shares will be mailed to each holder.
The agent for redemption and conversion is Norwest Bank Minnesota, N.A.,
Shareowner Services, Reorganization Department, 161 North Concord Exchange,
South St. Paul, Minnesota 55075-1139.
    The conversion of the Series P depositary shares will reduce the company's
aggregate cash dividends by approximately $16.5 million per year.  Based on
current consensus earnings estimates, the conversion of the Series P into
common shares is not expected to have a material impact on the company's
calculation of fully diluted earnings per share, excluding non-recurring
charges.
    James River Corporation, headquartered in Richmond, Va., is a leading
marketer and manufacturer of paper-based consumer products, packaging, and
business, printing and converting papers.  The second largest worldwide
producer of tissue products, James River markets such leading brands as
Quilted Northern bathroom tissue, Brawny paper towels, Vanity Fair napkins,
and Dixie cups and plates in North America, and Lotus bathroom tissue, towels,
and facial tissue in Europe.  The company also markets Quilt-Rap sandwich
wrap, Qwik Wave microwave packaging, and Eureka! and Word Pro copy papers.
James River's current annual sales rate is approximately $5.7 billion.

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