::The Center for Paper Business and Industry Studies::

080125 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (1/25/08)

Deutsche Bank - Equity Research

* We upgraded Packaging Corp. to a Buy this week after what we felt was an over-reaction to weaker-than-anticipated Q108 "guidance" of $0.36(FC was at $0.45). PKG offers superior margins & strong b/s and 5.0% current yield.

* Dec. newsprint statistics show that consumption continues to decline briskly (US dailies fell 19.3% y/y in Dec. and 10.8% in '07).

Due to supply discipline and improving trade flows, inventories remain lean, and price hikes appear to be taking hold.

* Save the dates - Feb. 22th to 29th. Deutsche Bank is headed to Latin America for our 4th Annual Pulp, Paper & Forestry trip. This investor trip will include meetings and presentations with senior management of both U.S. and Latin America based companies, as well as planned site visits in Brazil and Chile.