Business News

MWV Reports First Quarter 2009 Results

Thursday 30. April 2009 - Cash from Operations Improves Significantly to $90 Million; Company on Track to Achieve Over $125 Million Savings in 2009

MeadWestvaco Corporation (NYSE: MWV) reported lower year-over-year
earnings for the first quarter of 2009, reflecting reduced volumes for packaged goods, office supplies and specialty
chemicals due to the weak global economic environment. The company is taking aggressive actions to strengthen its
financial position and maximize performance by reducing corporate and business unit overhead costs, closing and
restructuring manufacturing facilities and focusing on higher return growth opportunities in targeted packaging
markets.

Cash flow from operations more than doubled to $90 million in the first quarter of 2009 compared to $40 million in the
first quarter of 2008. MWV’s actions to continue to tightly manage working capital and reduce its cost structure, as
well as higher cash flows from the company’s Community Development and Land Management business drove the
improvement. As part of its Strategic Cost Management program, the company also realized over $14 million in cost
savings in the first quarter of 2009 from reduced overhead expenses and manufacturing optimization initiatives, and is
on track to achieve its 2009 savings goal of $125 million.

“We have taken a number of proactive steps at MWV to strengthen our overall performance and increase the value
we create for customers and shareholders,” said John A. Luke, Jr., chairman and chief executive officer. “This
focused strategy has helped to stabilize our results as demand declined sharply for many of our products, and will
provide better operating leverage to improve earnings when the economy recovers. MWV continues to capitalize on
our strong financial position, leading market expertise, and disciplined approach to cost management as we target the
most attractive growth opportunities in our global markets – making our company a valued partner for customers and
a sound investment for shareholders.”

Quarterly Comparison
First quarter 2009 net loss from continuing operations was $79 million, or $0.46 per share. Included in the results
from continuing operations are after-tax restructuring charges of $51 million, or $0.30 per share, primarily related to
employee separation costs, asset write-downs and facility closures. Sales were $1.35 billion in the first quarter of
2009 compared to sales of $1.52 billion in the first quarter of 2008.

First quarter 2008 net loss from continuing operations was $8 million, or $0.04 per share. Included in the results from
continuing operations are after-tax restructuring charges of $5 million, or $0.03 per share, primarily related to
employee separation costs, asset write-downs and facility closures, and after-tax bad-debt charges of $5 million, or
$0.03 per share, related to two customer bankruptcies. Also included in the results from continuing operations is an
after-tax gain of $6 million, or $0.04 per share, from the recognition of a curtailment gain associated with the
company’s U.S. pension plan. First quarter 2008 income from discontinued operations was $4 million, or $0.02 per
share, related to the sale of the company’s North Charleston, S.C., kraft paper mill and related assets on July 1, 2008,
previously included in the Packaging Resources segment.

Packaging Resources
In the Packaging Resources business, segment profit from continuing operations in the first quarter of 2009 was $19
million compared to $32 million in the first quarter of 2008. Sales were $568 million in the first quarter of 2009
compared to $631 million in the first quarter of 2008. Price improvement was offset by lower sales volume as well as
higher unabsorbed fixed manufacturing costs associated with market- and maintenance-related downtime. Despite
moderating input costs, results were also impacted by higher year-over-year costs for energy, raw materials and
freight, and unfavorable foreign currency translations principally related to Rigesa, the company’s Brazilian operation.

As expected, in the first quarter of 2009, the segment took aggressive actions to match production with demand in
conjunction with its planned maintenance outages. These actions resulted in volume and productivity declines, which
lowered overall segment profit versus the prior year. In the first quarter, market- and maintenance-related downtime
totaled 85,000 tons (57,000 SBS and 28,000 CNK). Shipment declines in paperboard grades for tobacco,
beverage and liquid packaging were modest, while declines in more economically-sensitive grades for commercial
print and global general packaging markets were more pronounced.

Consumer Solutions
In the Consumer Solutions business, segment profit increased to $13 million in the first quarter of 2009 compared to
$9 million in the first quarter of 2008. Sales were $533 million in the first quarter of 2009 compared to $606 million in
the first quarter of 2008. Global healthcare packaging sales growth driven by the continued success of MWV’s
Shellpak solution was more than offset by unfavorable foreign currency translations, modest sales declines in global
beverage, tobacco, and home and garden, and more pronounced declines in the discretionary segments of global
personal care and media packaging.

Increased segment profit was driven by improved productivity due to ongoing business model improvement actions
and lower year-over-year input costs. As part of the company’s strategy to focus its business on higher-value,
differentiated packaging opportunities, the segment is streamlining its product and manufacturing footprint and
significantly reducing related overhead and selling, general and administrative costs. Since commencing the
program, the segment has announced the closure of six manufacturing locations, including most recently two folding
carton locations in Louisa, Virginia, and Caguas, Puerto Rico.

Consumer & Office Products
In the Consumer & Office Products business, segment loss was $5 million in the first quarter of 2009 compared to a
loss of $3 million in the first quarter of 2008. Sales were $163 million in the first quarter of 2009 compared to $208
million in the first quarter of 2008. As expected, sales were lower due to the weak global economic environment,
resulting in lower volumes of consumer, time-management and dated products. Envelope products sales were
particularly weak as financial services customers continue to significantly reduce direct mail offerings. Benefits from
ongoing productivity actions to match production to demand were more than offset by lower volumes across all
businesses resulting in slightly higher losses in the first quarter. This segment continues to be impacted by Asian-
based imported products.

Specialty Chemicals
In the Specialty Chemicals business, segment profit was $1 million in the first quarter of 2009 compared to $12 million
in the first quarter of 2008. Sales were $94 million in the first quarter of 2009 compared to $124 million in the first
quarter of 2008. Sales and segment profits were lower due to the weak U.S. economy, resulting in lower volumes for
pine chemicals and activated carbon. To reduce manufacturing cash costs and inventories, the segment operated its
production facilities at significantly reduced utilization rates, resulting in lower segment profit in the quarter.

Community Development and Land Management
Segment sales were $86 million in the first quarter of 2009 compared to $21 million in the first quarter of 2008.
Segment profit was $56 million in the first quarter of 2009 compared to $8 million in the first quarter of 2008. The
major driver of segment sales and profit in the first quarter of 2009 was the sale of a 25,000-acre tract in South
Carolina for gross proceeds of $49 million. Profit from real estate activities was $53 million in the first quarter of 2009
compared to $4 million in the first quarter of 2008. The segment sold approximately 34,000 acres for gross proceeds
of $68 million in the first quarter of 2009 compared to approximately 2,000 acres for gross proceeds of $5 million in
the first quarter of 2008. Profit from forestry operations and leasing activities was $3 million in the first quarter of 2009
compared to $4 million in the first quarter of 2008.

Real estate industry conditions remain challenging due to continued credit tightening and weaker consumer spending.
These factors will likely continue to influence near-term results. During this time, the segment will continue to move
forward with its near- and long- term real estate value creation plans, including enhancing rural land and entitling and
master planning its highest potential development land.

Corporate and Other
Corporate and Other loss was $175 million in the first quarter of 2009 compared to a loss of $81 million in the first
quarter of 2008. The majority of the increased loss in 2009 was driven by higher year-over-year restructuring charges
of $73 million.

Strategic Cost Management
On January 15, 2009, MWV announced that it is implementing a series of broad cost reduction actions to further
reduce its corporate and business unit overhead cost structure, optimize its manufacturing footprint, and realize
sourcing savings throughout its supply chain. By the end of 2009, these actions are expected to result in the
elimination of about 2,000 positions, or 10 percent of MWV’s global workforce, and the closure or restructuring of 12
to 14 manufacturing facilities. These cost management efforts are expected to achieve $125 million in pre-tax savings
in 2009, with a targeted run-rate range of $250 million to $300 million by mid-2010. In the first quarter of 2009, MWV
achieved savings of over $14 million toward these goals, including the elimination of over 800 positions and the
announced closure of eight manufacturing facilities.

Other Items
In the first quarter of 2009, pre-tax total inflation, including energy, raw materials and freight, increased $12 million
over the first quarter of 2008 on a continuing operations basis.

In the first quarter of 2009, the pre-tax impact from unfavorable foreign exchange was $20 million higher compared to
the first quarter of 2008 on a continuing operations basis.

Cash flow provided by operations was $90 million in the first quarter of 2009, up from cash flow provided by
operations of $40 million in the prior year, driven by improved year-over-year working capital usage and higher
proceeds from land sales.

Cash and cash equivalents were $519 million at March 31, 2009, compared to $549 million at December 31, 2008.
The $30 million change is attributable to $90 million of cash flow provided by operations, offset by $110 million of cash
flow used in investing and financing activities, primarily capital spending and dividend payments, and $10 million from
the unfavorable impact of currency exchange rates during the quarter.

Capital spending by continuing operations was $45 million in the first quarter of 2009 compared to $64 million in the
first quarter of 2008.

Pension income from continuing operations before termination benefits and curtailments was $15 million in the first
quarter of 2009 compared to $21 million in the first quarter of 2008. The company’s U.S. qualified retirement plans
remain over funded and management does not anticipate any required regulatory funding contributions to such plans
in the foreseeable future.

For the first quarter of 2009, the effective tax rate benefit attributable to the loss from continuing operations was
approximately 13 percent compared to approximately 65 percent for the same period last year. The annual effective
tax rate in 2009 is expected to be about 21 percent, excluding discrete items.

MWV paid a regular quarterly dividend of $0.23 during the first quarter of 2009, totaling $39 million, and on April 27,
2009, declared a quarterly dividend payable on June 1, 2009, to stockholders of record at close of business on May 7,
2009.

In April 2009, MWV received payments totaling about $77 million related to an allowable alternative fuel excise tax
credit from the Internal Revenue Service, which represents a period of about 12 weeks of fuel usage at each of the
company’s three domestic paperboard mills. For financial reporting purposes, the excise tax credit is not included in
the results for the first quarter of 2009.

Outlook
Given continued worldwide economic uncertainty, results for 2009 are difficult to predict. MWV is directly addressing
the uncertain economic environment by remaining focused on the key items within its control that are expected to
maintain the company’s solid financial position and maximize the company’s performance, including:

continuing to rigorously review each business, including markets, products and customers, to ensure cost of
capital returns;
matching production to demand to conserve cash costs;
vigilantly managing working capital usage and reducing discretionary spending;
reducing capital expenditures by narrowing spending on more immediate, high-return investments; and,
continuing to reduce the company’s overhead structure and rationalize manufacturing capacity.