RICHMOND, Va., Sept. 25 /PRNewswire/ -- Fort James Corporation announced
today that it has priced a total of $720 million of senior notes in three
tranches.  The first tranche, $100 million principal amount of 6-1/2 percent
senior notes due September 15, 2002, was priced to yield 6.53 percent.  The
second tranche, $320 million principal amount of 6-5/8 percent senior notes
due September 15, 2004, was priced to yield 6.717 percent.  The third tranche,
$300 million principal amount of 6-7/8 percent senior notes due September 15,
2007, was priced to yield 6.879 percent. The 2002 notes are not redeemable
prior to maturity.  The 2004 notes and the 2007 notes may be redeemed, in
whole or in part, at any time at the option of the company.
    The offering is a component of a plan designed to refinance an aggregate
of approximately $2.3 billion in principal amount of debt of Fort James
Corporation and Fort Howard Corporation, which merged with a wholly-owned
subsidiary of Fort James on August 13, 1997.  Net proceeds from the offering
will be used to repurchase Fort Howard Corporation debt securities and, to the
extent not so used, for general corporate purposes.
    The offering is being managed by Merrill Lynch & Co., Morgan Stanley Dean
Witter and Salomon Brothers Inc.  A copy of the prospectus relating to the
offering may be obtained from Merrill Lynch & Co., North Tower, World
Financial Center, New York, New York.
    Fort James is a leading international consumer products company, serving
consumers both at home and away-from-home with bathroom and facial tissue,
paper towels, napkins, and cups and plates.  The company's popular brands
include Quilted Northern, Brawny, Dixie, Vanity Fair, Mardi Gras, Green
Forest, Soft 'N Gentle and So-Dri in North America and Lotus, Tenderly,
Colhogar and Kittensoft in Europe.  Fort James also produces folding cartons
for packaging food and pharmaceuticals and communications papers such as
printing, publishing and office copy paper.  The company has approximately
30,000 employees and more than 65 manufacturing facilities in the U.S., Canada
and 12 European countries.
    Copies of today's news release, along with additional information on Fort
James, is available, at no charge, by calling 888-526-3711.  You may also
access the company's Web site at Internet address http://www.fortjames.com.

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