“ International Logistics from a Shipper Perspective”

MAY 2006

S.C. International Trade Conference

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World leader in value-added cellulose-based specialty products.

Sales primarily to industrial and consumer product companies. Shipments primarily in “bale and roll” form.

2005 Net Sales of $712.8 million

Only company in the world to manufacture cellulose-based specialty products made from both “wood and cotton” and utilizing both “wetlaid and airlaid” technologies.

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End Use Examples of Buckeye Products

Wipes

Femcare

Baby DiapersTire Cord

LCD Screens Food Casings

Ethers(Thickeners)

Filters

CurrencyPapers

Table Top

Nonwoven Specialty Fibers Materials Fluff Pulp Chemical Cellulose Customized Fibers

32% 18% 32% 18%

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Nonwovens Sites

Corporate Headquarters

Cotton Cellulose

Converting

Wood Cellulose

Intl. Sales Office

Global Presence

Brazil

Germany

SwitzerlandFlorida

North CarolinaTennessee

Canada / BC

67% of sales outside US

86% of sales denominated in US$

71% of products produced in US

North America42%

South America4% Other

6%

Asia10%

Europe38%

Based on fiscal 2005 net sales

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Market Leader in Attractive Niches

Industry Ranking

Products / Applications

#1Specialty Cotton Papers

#1Filters

#1Film for Liquid Crystal Display (LCD)

#1Rayon Industrial Cord

#1Food Casings

#1High Purity Cotton Ethers (Thickeners)Chemical Cellulose

CustomizedFibers

Source: LMC International, Lockwood-Post, Nonwovens World and Company Estimates

#1Airlaid NonwovensNonwoven Materials

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Focus on technically demanding niche markets

Develop and commercialize proprietary product innovations

Strengthen long-term alliances with customers

Provide our products at an attractive value

Business Strategy

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Growth through New Applications

Product Characteristics

– Superior finishing (no fuzz)

– Excellent crack reduction

– Automated dispensing system

– Patent protected

Commercialization Status

– Code approval for use in residential slab on grade

– National product launch January 2005

– Award for most innovative new product

– Currently establishing distribution in U.S., Asia and Europe

– Expanding technology to fiber cement for shingles and panels

Ultra Fiber 500TM - Revolutionary concrete reinforcing fiber

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Growth through New Applications High-purity Cotton Cellulose in Liquid Crystal Displays (LCDs)

Characteristics of high-end LCD market

– Used in desktop monitors, notebook computers and LCD TV’s

– Experiencing rapid growth

Advantages of triacetate films made with Buckeye’s cotton-based specialty fiber

– Preferred over petroleum-based product

– Provides excellent optical properties

Small component of total LCD cost structure

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Logistics Scope

Containers: 34,000 teus/yr

Breakbulk: 45,000 mts/yr

N.A. Rail Boxcars: 5,500 shipments /yr

N.A. Trucks: 7,000 trucks /yr

As well as: * Outside warehouses * 3PL service contracts * Outside Carrier Bill Payment Services * Rail tracking and tracing services

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Primary Container Lanes

Primary Container Trade Lanes out of the US (2005)

Pac Rim

Lat America

MED

N. Europe

OTHER

Primary US Container Ports are:

Savannah

Charleston

Jacksonville

LA/LB

Key LogisticalChallenges

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with Service Providers

FREETIMEIssues (definition/negotiation)

CARRIERSchedule Unreliability

CARRIERAccessorialProliferation

US PORT Reduction in Flexibility

CUSTOMER SERVICEDecline

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Internally and with Customers

Striving to levelout the business

volumes

Non-traditional Customers and

new service demands

ResourceReductionsCOST !