Buckeye Announces Extension of Consent Solicitation and Increase in Co

    Business Editors

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Feb. 14, 2005--Buckeye Technologies Inc. (NYSE: BKI) today announced that it has extended until 5:00 pm, New York City time, on February 16, 2005, unless otherwise terminated or further extended, its solicitation of consents (the "Consent Solicitation") from holders of its outstanding $200 million aggregate principal amount of 8 1/2% Senior Notes due October 1, 2013 (the "2013 Notes") to amend the indenture for the 2013 Notes. Buckeye further announced that it has increased the consent fee to consenting holders from $5.00 to $10.00 per $1000 principal amount of the 2013 Notes with respect to which consent is given, subject to the conditions described in the consent solicitation statement dated January 27, 2005 (the "Consent Solicitation Statement").
    The purpose of the Consent Solicitation is to amend certain provisions of the indenture governing the 2013 Notes to permit Buckeye to redeem $100 million of its 9 1/4% Senior Subordinated Notes due September 15, 2008 (the "2008 Notes"). In conjunction with the redemption of the 2008 Notes, Buckeye intends to amend its current credit facilities with, among other things, an incremental increase in its term borrowings of approximately $85 million. Prior to this extension, the Consent Solicitation was scheduled to terminate at 5:00 pm on February 14, 2005.
    All holders of our 2013 Notes who have previously delivered consents do not need to redeliver such consents or take any other action in response to this extension in order to receive the increased consent fee upon the successful conclusion of the Consent Solicitation.
    Buckeye has engaged Citigroup Global Markets Inc. to act as solicitation agent in connection with the Consent Solicitation. Questions regarding the Consent Solicitation should be directed to Citigroup Global Markets Inc., Liability Management Group at (800) 558-3745 (US toll-free) or (212) 723-6106 (collect).
    This announcement is not a solicitation of consents with respect to any securities. The Consent Solicitation is made solely by the Consent Solicitation Statement. Requests for documentation and additional copies of the Consent Solicitation Statement may be directed to Global Bondholders Services Corporation, the information agent for the Consent Solicitation, at (866) 924-2200 (US toll-free) or (212) 430-3774 (collect).
    Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.
    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company's operations, financing, markets, products, services and prices, and other factors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.

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CONTACT: Buckeye Technologies Inc., Memphis Kris Matula, 901-320-8588 or Chad Foreman, 901-320-8828 Website: www.bkitech.com

KEYWORD: TENNESSEE GERMANY BRAZIL INTERNATIONAL CANADA EUROPE LATIN AMERICA INDUSTRY KEYWORD: CHEMICALS/PLASTICS FOREST PRODUCTS SOURCE: Buckeye Technologies Inc.

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