Packaging

Graphic Packaging Streamlines Label Business by Closing Site in St. Charles, Illinois

Thursday 02. October 2008 - Another Aggressive Step toward Achieving $90 Million in Synergy Savings by 2010

Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), announced today that it plans to streamline its Label business in the United States, and close the label manufacturing facility, located at 1501 Indiana Avenue in St. Charles, a suburb of Chicago, Illinois, early in 2009.

The St. Charles label facility provides “cut and stack” paper labels to the food and healthcare industries. Label production will continue through year-end to fulfill customer orders and support the peak demand in the third and fourth quarters. The Company plans to transition business from the St. Charles site during the first quarter of 2009. The Company is providing appropriate notification and assistance to the approximately 100 hourly and salaried employees who will be affected by this closing.

“This is another strong step under our integration plan to optimize our manufacturing footprint and achieve the announced operating synergies of $90 million by 2010,” said David W. Scheible, president and chief executive officer of Graphic Packaging International, Inc. “We believe this decision strengthens our ability to support growing regional markets from our most efficiently run label facilities, and will continue our aggressive earnings improvement in spite of the challenging operating environment.”