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

071130 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (11/30/07)

Deutsche Bank - Equity Research

* Bam! AbitibiBowater announced the closure of 1MM/mtons of newsprint (600K) & commercial printing papers (400K) in Q1. ABH

suggested that Phase 2 review could lead to further closures. We think the closures will “ice” a Q1 $60/mton newsprint hike.

* Temple-Inland rolled out strategy for “New TIN” as well as more pro forma financials. $10.25/share cash dividend is set for December and spin-offs of Forestar & Guaranty are slated for 12/28/07. Roadshow convinced us that TIN is likely to remain independent & will grow in disciplined fashion.

* Why does Rock-Tenn trade at $26.38? At these levels, RKT is trading @ 6.3X '07E & 5.9X ‘08E on an EV/EBITDA and @ 13+% free cash yield. Management is solid and focused. One of our favorite packaging stocks.