Packaging Corporation of America Announces Pricing of Its Tender Offer for Any and All 9⁵/8% Senior Subordinated Notes Due 2009

        LAKE FOREST, Ill.July 17, 2003Packaging Corporation of America (NYSE: PKG) announced today the pricing of its tender offer for any and all of its $550 million outstanding 9⁵/8% Series B Senior Subordinated Notes due 2009 (CUSIP No. 695156AD1) (the "Notes").

        The tender offer is being made upon the terms and subject to conditions set forth in PCA's Offer to Purchase and Consent Solicitation Statement dated June 23, 2003 (the "Offer to Purchase"). Assuming the tender offer is not extended beyond the scheduled expiration time of 12:00 midnight, New York City time, on Monday, July 21, 2003 (the "Expiration Time"), the total consideration for each $1,000 principal amount of Notes tendered and accepted for payment pursuant to the tender offer will be $1,102.40, plus accrued interest up to, but not including, the payment date. The total consideration includes a consent payment of $20 per $1,000 principal amount of Notes that will be paid only to holders that validly tendered (and did not validly withdraw) their Notes before 5:00 p.m., New York City time, on July 7, 2003. Payment for Notes validly tendered and consents validly delivered will be made promptly following the Expiration Time.

        In connection with the tender offer, PCA also sought and received consents from the holders of a majority in aggregate principal amount of outstanding Notes to certain proposed amendments to the indenture under which the Notes were issued. Accordingly, PCA, the subsidiary guarantors and the trustee under the indenture have executed and delivered a supplemental indenture containing the proposed amendments. As more fully described in the Offer to Purchase, the proposed amendments would eliminate or modify substantially all of the restrictive covenants and certain events of default and related provisions in the indenture. The proposed amendments will not become operative, however, unless and until PCA accepts the Notes for purchase in accordance with the terms and subject to the conditions set forth in the Offer to Purchase. If the proposed amendments become operative, holders of all the Notes then outstanding will be bound thereby.

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