Growing Green, Growing Profits

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1 Growing Green, Growing Profits paper customers global INDEVCO Group environmental sustainability Corporate Profile Operational Highlights Include: Memberships: Established in 1939, Interstate Resources operates by the founder s simple motto: What is good for the community is good for the company. Whether it s customer service, product innovation or investments in green energy, Interstate Resources continues to excel. 10.9$ million investment for manufacturing American Forest & Paper Assn. (AF&PA) Association of Independent Corrugated Today, Interstate Resources has ten businesses on the east coast, and continues to add acquisitions in four highly competitive industry divisions: paper, container, timber/ lumber and biomass energy. Headquartered in Arlington, Virginia, Interstate Resources is a member of INDEVCO Group. Their international support has provided Interstate Resources with management independence and flexibility; investment resources; and the ability to anticipate future needs and demands. Jim Morgan, President and COO, is at the forefront with a global vision / local touch for Interstate Resources. Operational focus is on product and service innovation, with environmental sustainability. improvements and a -650acre multiplelagoon system for cleaner, recyclable wastewater in Riceboro, Georgia New biomass energy division established in Reading, Pennsylvania diverting 60 truckloads daily from landfills to the Evergreen Community Power facility A %78 reduction of fossil fuels since 2003 Saving 6,000 acres of trees a year at the Reading, Pennsylvania location Custom solutions to help reduce customer carbon footprints, e.g., supply chain reduction for consumer packaged goods (CPG) companies Recyclable wax replacement packaging, with proven moist condition tolerance Meeting or exceeding American Lumber Standards in Riceboro, Georgia Certifications: ISO 9001:2008 Converters (AICC) Berks County Chamber of Commerce Chesapeake Bay Foundation Delmarva Poultry Industry Fibre Box Association (FBA) Forest Landowner Association Forest Resource Association Georgia Forestry Association New Jersey Business and Industry Assn. North Carolina Poultry Federation Produce Marketing Association Technical Association of the Pulp and Paper Industry (TAPPI) The Corr (Global Green) Wood Supply Research Institute Interstate Resources will continue to add new products, enter new markets and acquire new operations. With a steady hand, innovative products and vision, Interstate Resources is positioned well for the future. Evergreen Community Power, Interstate Container Brunswick, Interstate Container Cambridge, Interstate Container Lowell, Interstate Container Reading, Interstate Container Westminster, Interstate Paper, Newport Timber, PSI Packaging Services, RB Lumber, Southcorr Packaging and United Corrstack are business units of Interstate Resources. Contact us at or Info@InterstateResources.com.

2 Responsible Forestry SFI forestry American Lumber Standards logger mill bark Newport Timber and RB Lumber needed to address a number of business demands on several key fronts. Ensuring company profitability, pursuing environmental sensitivity, while maintaining excellent customer service and products were the challenges facing Interstate Resources. Building on the flexibility of private ownership, Interstate Resources has developed and instituted a multi-tiered approach for environmental, economic and service success. The world s renewable resources are universally regarded as precious and worth protecting. Newport Timber and RB Lumber take these responsibilities very seriously and continuously look for ways to improve its limited, minimal impact on the environment. Practicing good sustainable forestry methods for years, Newport Timber operates within the guidelines. Their carbon footprint is reduced when using every part of the tree in the process, producing a product or energy. Consequently, the client s carbon footprint is also reduced when working with Newport Timber and RB Lumber. Environmental efforts include: Meeting or exceeding American Lumber Standards guidelines Logger certification: All loggers are trained in the Georgia Master Timber Harvester Program Utilizing wood chips, bark and sawdust as biomass boiler fuel at Interstate Paper for steam and cogeneration of electricity Supplying Interstate Paper with all of their virgin fiber: %90 of chips are manufactured on site, %10 purchased as residuals from other sawmills Newport Timber and RB Lumber s private ownership has been instrumental with best management practices (BMPs), investments, speed of decisions, flexibility and long-term goals. Products include pine saw wood for pressure treated lumber and wood chips. Customer service has been expanded to include Just-in-Time inventory. You can count on their service, products and attention to detail as always, their target is zero customer complaints. Newport Timber, RB Lumber and Interstate Paper are business units of Interstate Resources. Contact us at or Info@InterstateResources.com.

3 Interstate Paper %78 Reduction of Fossil Fuels Since 2003 biomass fiber recovery fossil fuels steam linerboard virgin pulp Tire Derived Fuel (TDF) Algas, Water Reuse and Reduction Mill Steam Generated from Black Liquor In order to serve the customer, support the community and protect natural resources, Interstate Paper needed to find a way to develop environmentally friendly energy, maximize efficiencies and still produce a competitive product. Interstate Paper has been improving their sustainable efforts for years. They ve consistently reached past the good enough benchmark by constantly re-evaluating and adjusting their environmental focus and initiatives. These ongoing endeavors consist of maximizing current infrastructure and resources, investing in continuous improvements, and committing to future modifications. Here s a quick snapshot of successful initiatives toward safeguarding the environment: Investments: Late 2003, Install Bubbling Fluidized Bed (BFB) Boiler - Provides %62 reduction in mill wide fossil fuel consumption - Supplies %45 of steam for mill - Utilizes a variety of non fossil fuels Bark, wood waste Green chips (pine plantation thinning) Tire derived fuel (shredded discarded tires) Sludge derived from recycling boxes / old corrugated containers (OCC) - Uses less than %10 fossil fuel for start-up, shutdown and stabilization 2007, Upgrade BFB - Improves air system, fuel feed system and ash handling - Provides improved boiler efficiency - Reduces fossil fuel an additional %39 compared to the previous best in , Upgrade Recovery Boiler Burner Management System - Improves boiler reliability - Provides %55 of the mill steam from black liquor (a tree by-product of producing pulp) - Uses less than %2 fossil fuel for start-up, shutdown and stabilization - Provides steam for the mill and recovers chemicals 2010, Super Heater Replacement Project - Improves reliability - Initiate project in 2009 with 2010 installation Results: Fossil fuel, %78 reduction since 2003 Water, %14 reduction (9 ½ million gallons of water a day from 11 million gallons a day) Electricity, %40 from biomass Sulfur dioxide (a major contributor to acid rain), %60 reduction since 2003 Steam reduction Particulates emission (tiny solid particles), %38 reduction due to: - Better BFB air pollution controls - Ability to run the mill without the Power Boiler Being a privately owned paper mill provides the opportunity to focus on investments for long-term growth and to aggressively pursue environmental sustainability improvements. This is truly a biomass driven paper mill since 2003, with less than %14 fossil fuel used to make steam. Interstate Paper is a business unit of Interstate Resources. Contact us at or Info@InterstateResources.com.

4 United Corrstack Green Mill with a Vision paper mill recycle customer corrugated fluting service green For years, corrugated box and paper customers required competitive pricing and customized service. However, more and more, today s customers demand price, service plus social responsibility and sustainability practices from their business to business partners. Environmental stewardship is a necessary and expected part of everyday business. Today, United Corrstack integrates many environmental sustainability practices into its day-to-day workflow, resulting in extensive natural resource protection. Just this one location saves 6,000 acres of trees a year. Their corrugating medium is %100 recycled materials (%98 post consumer and %2 pre consumer). Evergreen Community Power provides the paper mill with sustainable energy independence, impacting all aspects of the operation. United Corrstack receives clean electric and steam from renewable sources generated by their nearby power plant compared to other paper mills using fossil fuel and purchasing electric from a large fossil fuel utility. By exploiting synergies between multiple Interstate Resources business units, there are seamless, green, closed loop sustainable energy and recycling systems in place. Customers can positively impact their own carbon footprint, the environment and society by choosing to do business with United Corrstack. Capabilities: United Corrstack produces recycled corrugating medium from #23 to #33 with their 166" paper machine. Customer service and reliability include available Just-in-Time inventory. United Corrstack and Evergreen Community Power are business units of Interstate Resources. Contact us at or info@interstateresources.com.

5 Evergreen Community Power Power to the Mill, Power to the People biomass boiler energy deregulation power grid CO emissions landfills This thermal- and emissions-efficient, environmentally friendly biomass boiler: Spiraling utility costs combined with imminent federal government deregulation and environmental concerns were catalysts to find a cost-effective, sustainable energy solution to power United Corrstack paper mill in Reading, Pennsylvania. Generates steam and electricity from Interstate Resources created Evergreen Community Power, a massive 140$ million commitment to developing a solution. Evergreen Community Power creates green energy independence for the paper mill, reduces the load to local landfills, produces enough electricity to export energy to the regional PJM power grid and provides local jobs. Carbon monoxide (CO) emissions produced by biomass combustion is 23 times less damaging than the methane emissions from landfills. Energy is produced from the steam turbine and burning organic materials, such as wood and agricultural waste. renewable resources Uses 900 tons of biomass daily Generates 30 megawatts of electricity which was previously produced by a large utility using fossil fuels medium at a very competitive price in a challenging category where product variant differentiators are significant. Capabilities: Evergreen Community Power 900 tons of biomass and recycled wood products used daily to power the new boiler and steam turbine. Removes 60 truckloads of biomass waste daily from landfills, including organic materials as wood construction debris and agricultural waste Reduces CO emissions from fossil fuel combustion Eliminates methane emissions by avoiding landfill disposal Interstate Resources provides products made with green energy, helping customers with today s sustainability concerns and carbon reduction accountability. Evergreen Community Power allows the paper mill to provide their recycled corrugating Evergreen Community Power and United Corrstack are business units of Interstate Resources. Contact us at or info@interstateresources.com.

6 Sold For You by 6 Second Easy POP customized packaging creative point of purchase four-color printing Millions of dollars are lost when over 50 percent of the corrugated point of purchase (POP) displays are wasted. Due to assembly complexities, time limitations or a transient workforce, many displays never get assembled. Interstate Container Reading, the go to source for problem-solving, recognized the need for better, retail friendly, easily assembled displays. By simplifying display designs and using a fresh, differentiated approach, Interstate Container Reading is able to create innovative, easy to use, holistic displays that can be customized to individual customer needs. Today s retailers and consumer packaged goods (CPG) companies are focused on reducing packaging costs, problem-solving, eliminating waste and using fossil fuel alternatives. Interstate Container Reading brings a high level of commitment, creativity and responsibility to find the right, customized display solution for each customer s situation. Using their Pacific 3.0 with the Polyjoiner module, the Interstate Container Reading creative design team has developed dozens of new displays, taking as little as six seconds or less to pop into place. Easy POP customers reduce waste and get a strong return on investment since their high impact displays are assembled and deployed within the retail setting, leading to greater product placement visibility. Retailers and CPG companies are enthusiastic about the Easy POP display configurations, simplicity and increased product visibility. The customized display offers function, quality and aesthetics. The patented Easy POP display units can be custom printed in up to four colors. Let Interstate Container Reading help you present your product with an eyecatching display. Capabilities: Interstate Container Reading s equipment includes: Pacific 3.0 and Polyjoiner/folder gluer, BHS corrugators, Bobst platen die-cutter and Bobst color press. These allow for award winning full-service graphic packaging and POP displays. Interstate Container Reading is a business unit of Interstate Resources. Contact us at or info@interstateresources.com.

7 Box-In-Box Creates Lean, Green Supply Chain consumer packaging reduce waste sustainability supply chain global retailer Interstate Container Reading was challenged by their customer, MeadWestvaco, a global leader in consumer packaged goods (CPG). As one of the leading school and office suppliers, they needed to solve the problem of reducing corrugated packaging waste and costs while increasing the product placement visibility for their global retailer. Rising to the challenge, Interstate Container Reading s creative design team utilized their innovative machinery, a Pacific 3.0 folder gluer with a Polyjoiner module, to develop and design a unique corrugated Box-In-Box system. The module makes possible a number of novel design options, including a display tray on the inside with the outer box already attached to the outside. The resulting high impact, retail friendly point of purchase (POP) display exceeds both their customer and retailer expectations. This streamlined solution eliminates the need, steps and resources to go to co-packers, fulfillment centers or even packing off-line at the customer s facility. By eliminating these time consuming and costly steps, the consolidated supply chain improves efficiencies, reduces the environmental impact of their overall carbon footprint and positively affects the bottom line for MeadWestvaco and their retailers. Not only does Interstate Container Reading s retail ready packaging Box-In-Box get your product to market cheaper and faster...it looks better when it gets there, too. The Box-In-Box concept has been so well received, the retailer is investigating its viability for all their suppliers with similar products. By meeting unique customer challenges with singular, effective solutions, Interstate Container Reading's creative design team and customer service personnel lead the way. Capabilities: Interstate Container Reading s equipment includes: Pacific 3.0 and Polyjoiner/folder gluer, BHS corrugators, Bobst platen die-cutter and Bobst color press. These allow for award winning full-service graphic packaging and POP displays. Interstate Container Reading is a business unit of Interstate Resources. Contact us at or info@interstateresources.com.

8 GREENCOAT... No Wax Allowed wax alternative poultry boxes retail environment economic ice pack patent poultry plants seafood A box industry challenge was to provide a viable alternative for waxed boxes. Traditional paraffin waxed boxes are on a path to extinction due primarily to their inability to recycle. Consequently they end up in landfills (or are burned as fuel). Since 2005, many leading retailers and grocers, including Wal-Mart and Albertsons, have been demanding an environmentally friendly alternative to wax coated boxes from their suppliers. In addition, New York City and other major metropolitan areas are also considering bans on waxed boxes. The future is clear wax replacement packaging of poultry, seafood, produce, frozen food and floral products will become a necessity. Moist environments create challenging conditions for any wax replacement box. Performance is critical, as is the price point. Interstate Container Cambridge did the improbable. They created GREENCOAT, a patent-pending wax replacement that is effective, sustainable, %100 recyclable and cost effective. GREENCOAT meets or exceeds many wax performance benchmarks while remaining totally environmentally friendly. Global Green USA, a non-profit organization committed to addressing some of the greatest challenges facing humanity, praised the development in a recent press release. The announcement discussed Hunt s Point, NY, the world s largest food distribution center s move from non-recyclable transfer packaging to recyclable packaging. Unlike traditional wax boxes, GREENCOAT wax alternative: Is %100 recyclable and repulpable Meets or exceeds most current waxed box performance Features state of the art high performance Integrates multiple use applications Provides proven moist condition tolerance Is compostable Immediately promotes environmental and sustainability efforts Saves customers disposal fees And is cost neutral Additional benefits include reduced carbon footprints by eliminating pre-steps required for traditional wax coated or cascaded corrugated packaging, as well as by minimizing supply chain steps. Let Interstate Container Cambridge work with your team to solve your custom ice pack and moist environment corrugated box needs. Interstate Container Cambridge is a business unit of Interstate Resources. Contact us at or GREENCOAT@InterstateResources.com.

9 GREENCOAT... Strength and Sustainability water resistance strength greenhouse gases wax replacement recyclable repulpable How can a packaging supplier green their impact on the wholesale transfer packaging supply chain and make a positive impact on the environment? If there is a solution, how can the packaging supplier distinguish themselves from all other packaging suppliers? Packaging supplier Interstate Container Cambridge collaborated with major poultry processor Mountaire Farms to develop a patent pending, high-performance, wax replacement, recyclable box. This box has excellent meat release properties and, in tandem with a change from ice pack boxes to modified atmosphere packaging (MAP), has lowered costs, streamlined the supply chain and reduced an estimated 100,000 tons of greenhouse gases for Mountaire Farms. This is equivalent to a yearly savings of greenhouse gas emissions from 364,262 passenger vehicles. Interstate Container Cambridge created GREENCOAT, G a unique name that ideally portrays the application. GREENCOAT is i environmentally sensitive in many ways. This T brand is at the forefront of recyclable, greener g packaging methods and initiatives. Interstate Container Cambridge needed to positively represent their wax replacement brand b to illustrate its strength, water resistance, r sustainability, and characteristics. When W you see an elephant holding an umbrella, think of Interstate Container Cambridge. The logo represents toughness and durability while also portraying smart water repellant technology and environmental sustainability. Considerable capital and many years were devoted to researching and developing their new GREENCOAT process. This cost neutral wax replacement procedure meets or exceeds most waxed box performance and is recyclable, repulpable and compostable. Custom retailer possibilities are endless when packing poultry, produce, seafood and many other products. So look for the GREENCOAT elephant holding an umbrella, the new standard in wax replacement packaging. You and GREENCOAT, working in tandem to help preserve the future. Interstate Container Cambridge is a business unit of Interstate Resources. Contact us at or GREENCOAT@InterstateResources.com.

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