MWV Announces Special Dividend and Share Repurchases for Remaining U.S. Forestlands Sale Proceeds

  MWV Announces Special Dividend and Share Repurchases for Remaining U.S.
  Forestlands Sale Proceeds

Business Wire

RICHMOND, Va. -- January 27, 2014

MeadWestvaco Corporation (NYSE: MWV), a global leader in packaging and
packaging solutions, today announced that its Board of Directors has approved
the final form of shareholder returns for the remaining $569 million of
proceeds from the company’s sale of all of its U.S. forestlands to Plum Creek
Timber Company, Inc., which was completed on December 6, 2013. The Board
approved the following:

  *Approximately $175 million ($1.00 per share) in the form of a special
    dividend to be paid with the March regular quarterly dividend declared
    today (see separate release).
  *$394 million of share repurchases that the company expects will be
    comprised of $300 million under an accelerated share repurchase agreement,
    and $94 million pursuant to open market repurchases, which are both
    expected to be largely completed by the end of the second quarter of 2014.

Combined with the company’s previous open market repurchase of approximately
3.75 million shares for $131 million ($34.93 per share), total returns to
shareholders from the forestland asset sale are expected to be $700 million.

“The sale of the U.S. forestland assets to Plum Creek represents yet another
milestone in maximizing value for shareholders with a timely and creative
transaction,” said John A. Luke, Jr., chairman and chief executive officer,
MWV. “Not only are we returning substantial value to shareholders, but we also
anticipate further upside for shareholders as we continue to execute the
development strategies we have in place on the company’s remaining highest
value acreage in the Charleston area.”

About MWV

MeadWestvaco Corporation (NYSE:MWV) is a global packaging company providing
innovative solutions to the world’s most admired brands in the healthcare,
beauty and personal care, food, beverage, home and garden, tobacco, and
agricultural industries. The company also produces specialty chemicals for the
automotive, energy, and infrastructure industries and maximizes the value of
its development land holdings. MWV’s network of 125 facilities and 16,000
employees spans North America, South America, Europe and Asia. The company has
been recognized for financial performance and environmental stewardship with a
place on the Dow Jones Sustainability World Index every year since 2004. Learn
more at www.mwv.com.

Forward-looking Statements

Certain statements in this document and elsewhere by management of the company
that are neither reported financial results nor other historical information
are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Such information includes, without limitation,
the business outlook, assessment of market conditions, anticipated financial
and operating results, strategies, future plans, contingencies and
contemplated transactions of the company. Such forward-looking statements are
not guarantees of future performance and are subject to known and unknown
risks, uncertainties and other factors which may cause or contribute to actual
results of company operations, or the performance or achievements of each
company, or industry results, to differ materially from those expressed or
implied by the forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere herein, risks,
uncertainties, and other factors that could cause or contribute to actual
results differing materially from those expressed or implied for the
forward-looking statements include, but are not limited to, events or
circumstances which affect the ability of MeadWestvaco to realize improvements
in operating earnings from the company’s ongoing cost reduction initiatives;
the ability of MeadWestvaco to close announced and pending transactions;
competitive pricing for the company’s products; impact from inflation on raw
materials, energy and other costs; fluctuations in demand and changes in
production capacities; relative growth or decline in the United States and
international economies; government policies and regulations, including, but
not limited to those affecting the environment, climate change, tax policies
and the tobacco industry; the company’s continued ability to reach agreement
with its unionized employees on collective bargaining agreements; the
company’s ability to maximize the value of its development land holdings;
adverse results in current or future litigation; currency movements;
volatility and further deterioration of the capital markets; and other risk
factors discussed in the company’s Annual Report on Form 10-K for the year
ended December31, 2012, and in other filings made from time to time with the
SEC. MeadWestvaco undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information, future
events or otherwise. Investors are advised, however, to consult any further
disclosures made on related subjects in the company’s reports filed with the
SEC.

Contact:

MeadWestvaco Corporation
Media Contact
Tucker McNeil
tel: +1 804-444-6397
mediainquiries@mwv.com
or
Investor Relations
Jason Thompson
tel: +1 804-444-2556
 
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