FORT JAMES CORPORATION

FORT JAMES CORPORATION TO ACQUIRE EUROPEAN COTTON FACIAL PAD BUSINESS FROM THE PROCTER & GAMBLE COMPANY Adding Demak'Up to its Portfolio of Consumer Brands Deerfield, Illinois - Fort James Corporation today announced that it has agreed to purchase the Demak'Up business from the Procter & Gamble Company. Demak'Up is one of the leading pan-European brands of cotton pads used for facial cleaning and make-up removal. The transaction is subject to regulatory review and is expected to be completed this summer. Terms of the acquisition were not disclosed. The acquisition of Demak'Up compliments Fort James' existing European facial cleaning, make-up removal and skin-care product lines, which include the Lotus brand of cotton facial pads, facial tissues, baby wipes, and cotton swabs. The acquisition will significantly increase Fort James' European sales of facial cleaning and make-up removal pads, and will give the company one of the most recognised brands in this market, particularly in France, Germany, Italy, the Netherlands, Spain and Greece. ''This acquisition strengthens our European cotton business, and the Demak'Up brand is a solid addition to our line-up of European branded consumer products,'' said Miles L. Marsh, chairman and chief executive officer of Fort James. ''The combination gives us the benefits of greater scale and the potential for increased sales and earnings in a category which has grown by more than nine per cent per annum over the last three years.'' Procter & Gamble said it is selling Demak'Up as part of its efforts to focus on major global business opportunities. Demak'Up had sales of approximately US dlrs 50 million in the fiscal year ended June 30, 1998. Included in the acquisition is a cotton product manufacturing plant in Brionne, France, with approximately 200 employees. Fort James is one of the largest sellers of consumer tissue products in Europe. Product lines in both the at-home and away-from-home markets include bathroom and facial tissue, paper towels and napkins. The company has the leading brand of bathroom tissue in France (Lotus), Spain (Colhogar), Finland (Embo), Ireland (Kittensoft) and Turkey (Selpak), and the number two brand in Italy (Tenderly) and Greece (Delica). Fort James also produces customer brands for leading retailers across Europe and markets feminine hygiene products and pharmacy supplies. Worldwide, Fort James employs approximately 28,000 people, including approximately 7,000 in Europe. The company had sales of dlrs 7.3 billion in 1998. Its corporate headquarters are in Deerfield, Illinois, (U.S.) and its European headquarters are in London, England. The company has nearly 60 manufacturing operations located in 14 countries. Procter & Gamble markets approximately 300 brands to nearly five billion consumers in over 140 countries. This includes Tide, Ariel, Crest, Pantene Pro-V, Always, Whisper, Pringles, Pampers, Oil of Olay, Vicks and Didronel. Based in Cincinnati, Ohio, (U.S.), Procter & Gamble has on-the-ground operations in over 70 countries and employs more than 110,000 employees worldwide. Note To Editors: Copies of today's news release, along with additional information on Fort James, is available, at no charge, by calling +1-888-526 3711. You may also access the company's web site at Internet address http://www.fortjames.com/ Contact: Financial, Celeste Gunter, 001-847-317-5355, Media, Mark Lindley, +1-847-317-5280, in France, Jean-Pierre Quere, + 33-1-43-34-41-62, all of Fort James Corporation, or Linda Ulrey, +1-513-983-8975, in France, Christian Vivier, + 33-1-40-88-55-01, both of Procter & Gamble/ /Web site: http://www.fortjames.com/ FORT JAMES CORPORATION TO ACQUIRE EUROPEAN COTTON FACIAL PAD BUSINESS FROM THE PROCTER & GAMBLE COMPANY Adding Demak'Up to its Portfolio of Consumer Brands Deerfield, Illinois - Fort James Corporation today announced that it has agreed to purchase the Demak'Up business from the Procter & Gamble Company. Demak'Up is one of the leading pan-European brands of cotton pads used for facial cleaning and make-up removal. The transaction is subject to regulatory review and is expected to be completed this summer. Terms of the acquisition were not disclosed. The acquisition of Demak'Up compliments Fort James' existing European facial cleaning, make-up removal and skin-care product lines, which include the Lotus brand of cotton facial pads, facial tissues, baby wipes, and cotton swabs. The acquisition will significantly increase Fort James' European sales of facial cleaning and make-up removal pads, and will give the company one of the most recognised brands in this market, particularly in France, Germany, Italy, the Netherlands, Spain and Greece. ''This acquisition strengthens our European cotton business, and the Demak'Up brand is a solid addition to our line-up of European branded consumer products,'' said Miles L. Marsh, chairman and chief executive officer of Fort James. ''The combination gives us the benefits of greater scale and the potential for increased sales and earnings in a category which has grown by more than nine per cent per annum over the last three years.'' Procter & Gamble said it is selling Demak'Up as part of its efforts to focus on major global business opportunities. Demak'Up had sales of approximately US dlrs 50 million in the fiscal year ended June 30, 1998. Included in the acquisition is a cotton product manufacturing plant in Brionne, France, with approximately 200 employees. Fort James is one of the largest sellers of consumer tissue products in Europe. Product lines in both the at-home and away-from-home markets include bathroom and facial tissue, paper towels and napkins. The company has the leading brand of bathroom tissue in France (Lotus), Spain (Colhogar), Finland (Embo), Ireland (Kittensoft) and Turkey (Selpak), and the number two brand in Italy (Tenderly) and Greece (Delica). Fort James also produces customer brands for leading retailers across Europe and markets feminine hygiene products and pharmacy supplies. Worldwide, Fort James employs approximately 28,000 people, including approximately 7,000 in Europe. The company had sales of dlrs 7.3 billion in 1998. Its corporate headquarters are in Deerfield, Illinois, (U.S.) and its European headquarters are in London, England. The company has nearly 60 manufacturing operations located in 14 countries. Procter & Gamble markets approximately 300 brands to nearly five billion consumers in over 140 countries. This includes Tide, Ariel, Crest, Pantene Pro-V, Always, Whisper, Pringles, Pampers, Oil of Olay, Vicks and Didronel. Based in Cincinnati, Ohio, (U.S.), Procter & Gamble has on-the-ground operations in over 70 countries and employs more than 110,000 employees worldwide. Note To Editors: Copies of today's news release, along with additional information on Fort James, is available, at no charge, by calling +1-888-526 3711. You may also access the company's web site at Internet address http://www.fortjames.com/ Contact: Financial, Celeste Gunter, 001-847-317-5355, Media, Mark Lindley, +1-847-317-5280, in France, Jean-Pierre Quere, + 33-1-43-34-41-62, all of Fort James Corporation, or Linda Ulrey, +1-513-983-8975, in France, Christian Vivier, + 33-1-40-88-55-01, both of Procter & Gamble/ /Web site: http://www.fortjames.com/