It is International Paper’s vision to be one of the best and most respected companies in the world. It succeeds with great leadership, innovation and being brilliant at the basics. It believes so strongly that environmental innovation and improvement is enhanced through cooperative partnerships with the government, the public and NGOs, that it expresses its view in a dedicated Environmental Position Statement endorsed by the Executive Office. It participates in government programs that encourage good environmental stewardship on the part of business because the company believes that the public and International Paper can mutually benefit from such collaboration. Recent examples of its cooperative efforts with government include:

* EPA’s Climate Leaders Program—A voluntary program that seeks long-term, comprehensive climate change strategies in conjunction with the EPA. IP was the first paper and forest products company to join the program.

* EPA’s Combined Heat and Power Partnership (CHP)—A voluntary organization whose members are committed to encouraging CHP as an option for improving the
environmental and social aspects of electricity and power generation. Includes many efforts around the beneficial use of biorenewable resources in order to eliminate waste and reduce fossil fuel emissions.

* EPA’s XL Program (Excellence and Leadership)—A voluntary program that seeks to initiate and achieve change through technological innovation and regulatory flexibility, a program in which industry is encouraged to develop effective solutions that are comprehensive and sustainable. IP’s Androscoggin Mill, in Jay, ME, initiated process changes in lieu of other treatment and chemical containment measures required by federal regulation that not only significantly reduced chemical discharges by the mill, but have returned more than $1 million per year to the mill’s bottom line through energy and raw material savings.

* EPA’s National Environmental Performance Track (NEPT) program— IP has seven paper mills and one chemical plant that participate in the NEPT program, which requires facilities to operate at a level of environmental excellence that goes beyond regulatory compliance to benefit the environment and community. Additional sites are approved for enrollment during 2003.

* Canada’s Climate Change Voluntary Challenge & Registry—A public-private partnership that promotes voluntary efforts to address climate change issues. IP’s Canadian subsidiary, Weldwood, has reduced total emissions of greenhouse gases by 4.1 percent between 1996 and 2000, despite increased product output during the 10-year period framing that time.

For information, visit www.internationalpaper.com.