2012-10-17 00:31:01 -

BOISE, Idaho - Boise Inc. (NYSE: BZ) announced today it will permanently cease
production on the company's one remaining paper machine (H2) at its St. Helens,
Oregon, paper mill.  The decision will reduce Boise's annual uncoated freesheet
capacity by almost 60,000 tons and result in a loss of approximately 100 jobs,
primarily at the mill.

"This is a difficult but necessary decision to focus our efforts and resources
on the products and machines elsewhere in our system that drive the financial
performance and cash flow of our paper operations," said Alexander Toeldte,
president and chief executive officer of Boise Inc. "Despite the dedication and
hard work of our employees, we have concluded the machine cannot compete in the
marketplace over the long-term. We thank all of our employees, customers,
suppliers, and   the community who have supported this operation over so many
years.  We will work closely with our customers and suppliers to ensure a smooth
transition."

The company expects to stop production on the machine by December 31, 2012.
Eligible salaried employees will be offered severance packages and outplacement
assistance. Negotiations will be scheduled with the Association of Western Pulp
and Paper Workers Union (AWPPW) Local 1 to determine the effect for union
employees.

In third quarter 2012, we recognized approximately $31 million of pretax costs
related to ceasing operations at the mill.  This includes approximately $7
million of employee-related and other costs, most of which we expect to pay in
early 2013; approximately $10 million of cash costs for future site remediation,
which the company expects to pay out over a longer term; and approximately $14
million in noncash charges related primarily to the impairment of property,
plant, and equipment.

With this announcement, the only operating paper machine at the St. Helens mill
is owned by Cascades Tissue Group. Boise continues to explore alternatives for
the inactive portions of the mill site.

About Boise Inc.

Headquartered in Boise, Idaho, Boise Inc. (NYSE: BZ) manufactures a wide variety
of packaging and paper products. Boise's range of packaging products includes
linerboard and corrugating medium, corrugated containers and sheets, and
protective packaging products. Boise's paper products include imaging papers for
the office and home, printing and converting papers, and papers used in
packaging, such as label and release papers. Our employees are committed to
delivering excellent value while managing our businesses to sustain
environmental resources for future generations. Visit our website at
www.BoiseInc.com.

Forward-Looking Statements

This news release contains statements that are "forward looking" as defined by
the Private Securities Litigation Reform Act of 1995.  Forward-looking
statements include, without limitation, any statement that may predict,
forecast, indicate, or imply future results, performance, or achievements.  This
release includes our beliefs and expectations about the timing and financial
effect of the shutdown of the #2 paper machine in St. Helens.  Our views are
shaped by currently available business, economic, technical, and financial
information.  Actual results could vary materially depending on risks and
uncertainties associated with the shutdown.  For further information about the
risks and uncertainties associated with our business, please refer to our
filings with the Securities and Exchange Commission.  The company does not
intend, and undertakes no obligation, to update any forward-looking statements.

SOURCE: Boise Inc.

Greg Jones
Director, Investor Relations
208-384-7141

Karen Blanchard
Manager, Communications
208-891-7683

 www.boiseinc.com/





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Source: Boise Paper Holdings LLC via Thomson Reuters ONE
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