GPC Sees Lower Than $1 Billion Asbestos Costs --------------------------------------------- Published October 03, 2002 Georgia-Pacific Corp. reports that at December 31, 2001, it had either settled, had dismissed or was in the process of settling a total of around 235,000 asbestos claims. Substantially all of the amounts it has paid to date for settled claims, and anticipates paying for pending claims, have been covered by product liability insurance. In the late fall of 2001, the company retained National Economic Research Associates (NERA) and Peterson Consulting, nationally recognized consultants in asbestos liability and insurance, to project the amount, net of insurance, that the company would pay for its asbestos-related liabilities and defense costs through 2011. Based upon its analysis, NERA projected that the company's total, undiscounted asbestos liabilities, including defense costs, over the next 10 years will be less than $1 billion (including payments related to the approximately 62,200 claims currently pending). The company's asbestos liabilities relate primarily to joint systems products manufactured by Bestwall Gypsum Co. that contained asbestos fiber. Georgia-Pacific acquired Bestwall in 1965, and discontinued using asbestos in the manufacture of these products in 1977. In addition, Fort James Corporation, a wholly owned subsidiary of the Georgia-Pacific, currently is defending approximately 1,000 asbestos premises liability claims. COMPANY SNAPSHOT Georgia-Pacific Corp. (NYSE: GP) 133 Peachtree Street, N.E., Atlanta, Georgia 30303 Tel.: (404) 652-4000 Web site: http://www.metlife.com Employees : 71,000 Revenues : $ 25,020,000,000 Net Income (Loss) : $ (407,000,000) Total Assets : $ 26,364,000,000 Total Liabilities : $ 21,459,000,000 Number of Asbestos claims : 62,200 (For the year ended December 29, 2001) Description: Georgia-Pacific operates in four business segments: tissue products and tableware; building products (including plywood, lumber, wallboard); pulp and paper; and packaging. The corporation is in the process of spinning off everything but building products into a separate consumer products company. Georgia-Pacific used asbestos from 1965 to 1977 in joint compound and similar products used with its drywall.