Sales Volumes by Product (1) (2) (Unaudited) Sales Volumes by Product Competition and Costs Marketing and Distribution Description of Principal Products  Carter Holt Harvey (4) International Paper Consolidated (excluding Carter Holt Harvey) Sales volumes of major products for 2004, 2003, and 2002 were as follows: Despite the size of the Company’s manufacturing capacity for paper, paperboard, packaging and pulp products, the markets in all of the cited product lines are large and highly fragmented. The markets for wood and specialty products are similarly large and fragmented. There are numerous competitors, and the major markets, both domestic and international, in which the Company sells its principal products are very competitive. These products are in competition with similar products produced by others, and in some instances, with products produced by other industries from other materials. Many factors influence the Company’s competitive position, including prices, costs, product quality and services. You can find more information about the impact of prices and costs on operating profits on pages 9 through 21 of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. You can find information about the Company’s manufacturing capacities on page A-5 of Appendix II. The Company sells paper, packaging products, building materials and other products directly to end users and converters, as well as through resellers. We own a large merchant distribution business that sells products made both by International Paper and by other companies making paper, packaging and supplies. Sales offices are located throughout the United States as well as internationally. We also sell significant volumes of products through paper distributors, including our own merchant distribution network, and agents. We market our U.S. production of lumber and plywood through independent distribution centers. The Company’s principal products are described on pages 15 through 17 of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. (1) Includes third party and inter-segment sales. (2) Sales volumes for divested businesses are included through the date of sale, except for discontinued operations. (3) Includes internal sales to mills. (4) Includes 100% of volumes sold. 2 2004 2003 2002 Printing Papers  (In thousands of tons) Market Pulp (3) 568 499 512 Packaging (In thousands of tons) Containerboard 459 361 400 Bleached Packaging Board 83 84 89 Industrial and Consumer Packaging 147 153 154 Forest Products  (In millions) Panels (sq. ft. 3/8” - basis) 183 179200 Lumber (board feet) 497 503 546 MDF and Particleboard  (sq. ft. 3/4” - basis) 580 582 494 2004 2003 2002 Printing Papers  (In thousands of tons) Brazil Uncoated Papers and Bristols 461 447 441 Europe & Russia Uncoated Papers  and Bristols 1,409 1,352 1,364 U.S. Uncoated Papers and Bristols 4,570 4,4394,527 Uncoated Papers and Bristols 6,440 6,238 6,332 Coated Papers 2,173 2,113 2,212 Market Pulp (3) 1,422 1,3791,378 Packaging (In thousands of tons) U.S. Container (Boxes) 2,668 2,204 2,610 European Container (Boxes) 1,049 1,031 1,020 Other Industrial and Consumer  Packaging 1,222 1,148 742 Industrial and Consumer Packaging 4,939 4,383 4,372 Containerboard 2,090 1,946 1,862 Bleached Packaging Board 1,495 1,348 1,247 Kraft 605 606 626 Forest Products  (In millions) Panels (sq. ft. 3/8” - basis) 1,563 1,580 1,798 Lumber (board feet) 2,456 2,345 2,464 MDF and Particleboard  (sq. ft. 3/4” - basis) - - 129