Business News

International Paper Announces Reduction in Quarterly Dividend

Tuesday 03. March 2009 - Company Takes Proactive Step to Increase Financial Flexibility

International Paper (NYSE: IP) announced today that its Board of Directors has reduced the company’s quarterly common stock dividend from twenty-five cents ($0.25) per share to two and one-half cents ($0.025) per share, effective for the dividend payable June 15, 2009, to shareholders of record on May 18, 2009.

This reduction will allow the company to preserve approximately $100 million in cash on a quarterly basis, which will be used to reduce debt more quickly.

“While our cash balances and cash flows remain solid, we believe it is prudent to manage cash conservatively in this uncertain economic environment,” said Chairman and CEO John Faraci.

“This decision, which reflects our strong commitment to maintaining our current credit ratings, is a proactive step to maximize our financial flexibility, along with our earlier decisions to reduce capital investment, decrease overhead spending and headcount, and freeze salaries.”

Record and Payment Date Information for Second-Quarter Dividend

The Company declared a regular quarterly dividend of $0.025 per share for the period from April 1, 2009 to June 30, 2009, inclusive, on its common stock, par value $1. This dividend is payable on June 15, 2009 to holders of record at the close of business on May 18, 2009.

The Company also declared a regular quarterly dividend of $1 per share for the period from April 1, 2009 to June 30, 2009, inclusive, on the cumulative $4 preferred stock of the company. This dividend is also payable on June 15, 2009, to holders of record at the close of business on May 18, 2009.