Packaging

Graphic Packaging to Temporarily Cease Production of Coated Unbleached Kraft (CUK) Machine in West Monroe, Louisiana

Friday 20. June 2008 - Company to Also Implement Customer Price Increases to Offset Continued Raw Material Cost Pressures

Graphic Packaging International Inc., a subsidiary of Graphic Packaging Holding Company(NYSE: GPK), today announced that, in response to sharp cost increases for mill inputs such as fiber, energy and chemicals, the Company plans to temporarily shut down its number-two coated board machine at its West Monroe, Louisiana mill. The number-two paper machine at West Monroe produces approximately 100,000 tons of coated unbleached kraft (CUK) annually, which is primarily used in the production of beverage cartons.

“The recent run up in the price of crude oil has translated into higher costs for key mill production inputs like fiber, natural gas and petro-based chemicals,” said David W. Scheible, President and Chief Executive Officer. “In response, we are undertaking various actions to offset those increases that include idling certain older, higher-cost assets. The decision to temporarily suspend production from machine number-two will help streamline our cost structure, while customer orders will continue to be fully met by using production from our other, lower-cost CUK machines.”

Scheible continued, “Due to the escalating costs and broader inflationary concerns, we are making these necessary adjustments to our operating structure. In addition to the actions we are enacting at our West Monroe mill, we have also determined it is necessary to implement price increases and renegotiate freight and delivery charges. Although Graphic Packaging has a strong reputation for low-cost manufacturing, these actions are necessary for us to remain competitive and to continue providing high-quality, innovative packaging to our customers, while also generating positive returns for our shareholders.”