----

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| (Mark One) |
|------------|
| þ     | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended _______April 3, 2010_______ |
| OR         |
| ¨     | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Transition Period From ____________to ____________ |

| Delaware                                                      | 75-1903917                              |
|---------------------------------------------------------------|-----------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. Employer Identification Number) |

| Large accelerated filer þ                                             | Accelerated filer ¨         |
|----------------------------------------------------------------------------|----------------------------------|
| Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |

| Class                                    | Number of common shares outstandingas of April 3, 2010 |
|------------------------------------------|--------------------------------------------------------|
| Common Stock (par value $1.00 per share) | 107,577,084                                            |

| Page 1 of 34 | The Exhibit Index is page 28. |
|--------------|-------------------------------|

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|                                                                                                                               | Page   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I.  FINANCIAL INFORMATION                                                                                           |   |
|                                                                                                                               |   |
| Item 1.  Financial Statements                                                                                            |   |
|                                                                                                                               |   |
| Consolidated Balance Sheets                                                                                                        | 3      |
| Consolidated Statements of Income                                                                                                  | 4      |
| Consolidated Statements of Cash Flows                                                                                              | 5      |
|               Notes to the Consolidated Financial Statements | 6      |
|                                                                                                                               |   |
| Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations                           | 13     |
|                                                                                                                               |   |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                                      | 24     |
|                                                                                                                               |   |
| Item 4.  Controls and Procedures                                                                                         | 25     |
|                                                                                                                               |   |
| PART II.  OTHER INFORMATION                                                                                              |   |
|                                                                                                                               |   |
| Item 1.  Legal Proceedings                                                                                               | 26     |
|                                                                                                                               |   |
| Item 1A.  Risk Factors                                                                                                   | 26     |
|                                                                                                                               |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                                     | 26     |
|                                                                                                                               |   |
| Item 3.  Defaults Upon Senior Securities                                                                                 | 26     |
|                                                                                                                               |   |
| Item 4.  (Removed and Reserved)                                                                                          | 26     |
|                                                                                                                               |   |
| Item 5.  Other Information                                                                                               | 26     |
|                                                                                                                               |   |
| Item 6.  Exhibits                                                                                                        | 26     |
|                                                                                                                               |   |
| SIGNATURES                                                                                                                         | 27     |

----

| Item 1. | Financial Statements |
|---------|----------------------|

|                                                                                                                                                                         |   | (Unaudited)First Quarter-End 2010 |   |   | Year-End 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|---------------|--------|
|                                                                                                                                                                         |   | (In millions)                     |   |
| ASSETS                                                                                                                                                                       |   |                              |   |   |          |   |
| Current Assets                                                                                                                                                               |   |                              |   |   |          |   |
| Cash and cash equivalents                                                                                                                                                    | $      | 29                                |   | $      | 36            |   |
| Trade receivables, net of allowance for doubtful accounts of $14 in 2010 and 2009                                                                                            |   | 466                               |   |   | 411           |   |
| Inventories:                                                                                                                                                                 |   |                              |   |   |          |   |
| Work in process and finished goods                                                                                                                                           |   | 101                               |   |   | 97            |   |
| Raw materials                                                                                                                                                                |   | 194                               |   |   | 182           |   |
| Supplies and other                                                                                                                                                           |   | 136                               |   |   | 134           |   |
| Total inventories                                                                                                                                                            |   | 431                               |   |   | 413           |   |
| Deferred tax asset                                                                                                                                                           |   | 67                                |   |   | 69            |   |
| Income taxes receivable                                                                                                                                                      |   | 12                                |   |   | 13            |   |
| Prepaid expenses and other                                                                                                                                                   |   | 33                                |   |   | 50            |   |
| Total current assets                                                                                                                                                         |   | 1,038                             |   |   | 992           |   |
| Property and Equipment                                                                                                                                                       |   |                              |   |   |          |   |
| Land and buildings                                                                                                                                                           |   | 684                               |   |   | 682           |   |
| Machinery and equipment                                                                                                                                                      |   | 3,565                             |   |   | 3,581         |   |
| Construction in progress                                                                                                                                                     |   | 52                                |   |   | 54            |   |
| Less allowances for depreciation                                                                                                                                             |   | (2,726                            | )      |   | (2,722        | )      |
| Total property and equipment                                                                                                                                                 |   | 1,575                             |   |   | 1,595         |   |
| Financial Assets of Special Purpose Entities                                                                                                                                 |   | 2,474                             |   |   | 2,475         |   |
| Goodwill                                                                                                                                                                     |   | 394                               |   |   | 394           |   |
| Other Assets                                                                                                                                                                 |   | 252                               |   |   | 253           |   |
| TOTAL ASSETS                                                                                                                                                                 | $      | 5,733                             |   | $      | 5,709         |   |
|                                                                                                                                                                         |   |                              |   |   |          |   |
| LIABILITIES                                                                                                                                                                  |   |                              |   |   |          |   |
| Current Liabilities                                                                                                                                                          |   |                              |   |   |          |   |
| Accounts payable                                                                                                                                                             | $      | 189                               |   | $      | 186           |   |
| Accrued employee compensation and benefits                                                                                                                                   |   | 80                                |   |   | 108           |   |
| Accrued interest                                                                                                                                                             |   | 14                                |   |   | 17            |   |
| Accrued property taxes                                                                                                                                                       |   | 8                                 |   |   | 12            |   |
| Other accrued expenses                                                                                                                                                       |   | 146                               |   |   | 131           |   |
| Current portion of long-term debt                                                                                                                                            |   | ––                    |   |   | —       |   |
| Current portion of pension and postretirement benefits                                                                                                                       |   | 17                                |   |   | 17            |   |
| Total current liabilities                                                                                                                                                    |   | 454                               |   |   | 471           |   |
| Long-Term Debt                                                                                                                                                               |   | 764                               |   |   | 710           |   |
| Nonrecourse Financial Liabilities of Special Purpose Entities                                                                                                                |   | 2,140                             |   |   | 2,140         |   |
| Deferred Tax Liability                                                                                                                                                       |   | 720                               |   |   | 721           |   |
| Liability for Pension Benefits                                                                                                                                               |   | 293                               |   |   | 285           |   |
| Liability for Postretirement Benefits                                                                                                                                        |   | 104                               |   |   | 105           |   |
| Other Long-Term Liabilities                                                                                                                                                  |   | 376                               |   |   | 391           |   |
| TOTAL LIABILITIES                                                                                                                                                            |   | 4,851                             |   |   | 4,823         |   |
| SHAREHOLDERS’ EQUITY                                                                                                                                                   |   |                              |   |   |          |   |
| Temple-Inland Inc. Shareholders’ Equity                                                                                                                                |   |                              |   |   |          |   |
| Preferred stock — par value $1 per share: authorized 25,000,000 shares; none issued                                                                          |   | —                           |   |   | —       |   |
| Common stock — par value $1 per share: authorized 200,000,000 shares; issued 123,605,344 shares in 2010 and 2009, including shares held in the treasury |   | 124                               |   |   | 124           |   |
| Additional paid-in capital                                                                                                                                                   |   | 428                               |   |   | 433           |   |
| Accumulated other comprehensive loss                                                                                                                                         |   | (247                              | )      |   | (256          | )      |
| Retained earnings                                                                                                                                                            |   | 1,084                             |   |   | 1,099         |   |
| Cost of shares held in the treasury: 16,028,260 shares in 2010 and 16,228,916 shares in 2009                                                                       |   | (598                              | )      |   | (606          | )      |
|  Total Temple-Inland Inc. shareholders’ equity                                                                                                                    |   | 791                               |   |   | 794           |   |
| Noncontrolling Interest of Special Purpose Entities                                                                                                                          |   | 91                                |   |   | 92            |   |
| TOTAL SHAREHOLDERS’ EQUITY                                                                                                                                             |   | 882                               |   |   | 886           |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                             | $      | 5,733                             |   | $      | 5,709         |   |

----

|                                                                                        |   | First Quarter                  |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                        |   | 2010                           |   |   | 2009 |   |
|                                                                                        |   | (In millions,except per share) |   |
|                                                                                        |   |                           |   |
| NET REVENUES                                                                                | $      | 905                            |   | $ | 941 |   |
| COSTS AND EXPENSES                                                                          |   |                           |   |   |   |   |
| Cost of sales                                                                               |   | (825                           | )      |   | (797 | ) |
| Selling                                                                                     |   | (27                            | )      |   | (29 | ) |
| General and administrative                                                                  |   | (39                            | )      |   | (39 | ) |
| Other operating income (expense)                                                            |   | (1                             | )      |   | (3 | ) |
|                                                                                        |   | (892                           | )      |   | (868 | ) |
| OPERATING INCOME(LOSS)                                                                      |   | 13                             |   |   | 73 |   |
| Other non-operating income                                                                  |   | ––                 |   |   | 10 |   |
| Interest income on financial assets of special purpose entities                             |   | 1                              |   |   | 12 |   |
| Interest expense on nonrecourse financial liabilities of special purpose entities           |   | (4                             | )      |   | (10 | ) |
| Interest expense on debt                                                                    |   | (13                            | )      |   | (19 | ) |
| INCOME (LOSS) BEFORE TAXES                                                                  |   | (3                             | )      |   | 66 |   |
| Income tax (expense) benefit                                                                |   | (2                             | )      |   | (30 | ) |
| NET INCOME (LOSS)                                                                           |   | (5                             | )      |   | 36 |   |
|  Net (income) loss attributable to noncontrolling interest of special purpose entities |   | 1                              |   |   | (1 | ) |
| NET INCOME (LOSS) ATTRIBUTABLE TO TEMPLE-INLAND INC.                                        | $      | (4                             | )      | $ | 35 |   |
|                                                                                        |   |                           |   |   |   |   |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                                             |   |                           |   |   |   |   |
| Basic                                                                                       |   | 107.7                          |   |   | 106.7 |   |
| Diluted                                                                                     |   | 109.2                          |   |   | 106.7 |   |
|                                                                                        |   |                           |   |   |   |   |
| EARNINGS (LOSS) PER SHARE                                                                   |   |                           |   |   |   |   |
|  Basic                                                                                 | $      | (0.04                          | )      | $ | 0.33 |   |
|  Diluted                                                                               | $      | (0.04                          | )      | $ | 0.33 |   |
|  DIVIDENDS PER SHARE OF COMMON STOCK                                                   | $      | 0.11                           |   | $ | 0.10 |   |

----

|                                                         |                                                              |                                                       | First Quarter |           |
|--------------------------------------------------------------|-------------------------------------------------------------------|------------------------------------------------------------|---------------|----------------|
|                                                         |                                                              |                                                       | 2010          |           |   |   | 2009 |   |
|                                                         |                                                              |                                                       | (In millions) |           |
| CASH PROVIDED BY (USED FOR) OPERATIONS                       |                                                              |                                                       |          |           |
|                                                         | Net income (loss)                                            |                                                       | $             | (4             | ) |   | $ | 35 |   |
|                                                         | Noncontrolling interest                                           |                                                       |          | (1             | ) |   |   | 1 |   |
|                                                         | Adjustments:                                                      |                                                       |          |           |   |   |   |   |   |
|                                                         |                                                              | Depreciation and amortization                         |          |           | 48 |   |   |   | 51 |   |
|                                                         |                                                              | Asset impairment charges                                   |          |           | 8 |   |   |   | –– |   |
|                                                         |                                                              | Gains related to purchase and retirement of long-term debt |          |           | –– |   |   |   | (10 | ) |
|                                                         |                                                              | Non-cash share-based and long-term incentive compensation  |          |           | 6 |   |   |   | 9 |   |
|                                                         |                                                              | Cash payment for share-based awards settled                |          |           | (13 | ) |   |   | (4 | ) |
|                                                         |                                                              | Non-cash pension and postretirement plans                  |          |           | 17 |   |   |   | 12 |   |
|                                                         |                                                              | Cash contribution to pension and postretirement plans      |          |           | (3 | ) |   |   | (7 | ) |
|                                                         |                                                              | Deferred income taxes                                      |          |           | –– |   |   |   | 24 |   |
|                                                         |                                                              | Other                                                      |          |           | (6 | ) |   |   | 3 |   |
|                                                         | Changes in:                                                       |                                                       |          |           |   |   |   |   |   |
|                                                         |                                                              | Receivables                                                |          |           | (53 | ) |   |   | (28 | ) |
|                                                         |                                                              | Inventories                                                |          |           | (17 | ) |   |   | 18 |   |
|                                                         |                                                              | Accounts payable and accrued expenses                 |          |           | 1 |   |   |   | (31 | ) |
|                                                         |                                                              | Prepaid expenses and other                                 |          |           | 18 |   |   |   | 7 |   |
|                                                         |                                                              |                                                       | 1             |           |   |   | 80 |   |
| CASH PROVIDED BY (USED FOR) INVESTING                        |                                                              |                                                       |          |           |   |   |   |   |
|                                                         | Capital expenditures                                         |                                                       |          | (33            | ) |   |   | (19 | ) |
|                                                         | Other                                                             |                                                       |          | (8             | ) |   |   | (1 | ) |
|                                                         |                                                              |                                                       | (41           | )              |   |   | (20 | ) |
| CASH PROVIDED BY (USED FOR) FINANCING                        |                                                              |                                                       |          |           |   |   |   |   |
|                                                         | Payments of debt                                             |                                                       |          | –– |   |   |   | (57 | ) |
|                                                         | Borrowings under accounts receivable securitization facility, net |                                                       |          | 16             |   |   |   | 48 |   |
|                                                         | Borrowings under revolving credit facility, net                   |                                                       |          | 38             |   |   |   | (31 | ) |
|                                                         | Fees related to special purpose entities and other debt           |                                                       |          | (3             | ) |   |   | (15 | ) |
|                                                         | Changes in book overdrafts                                        |                                                       |          | (10            | ) |   |   | (11 | ) |
|                                                         | Cash dividends paid to shareholders                          |                                                       |          | (11            | ) |   |   | (10 | ) |
|                                                         | Exercise of stock options                                         |                                                       |          | 2              |   |   |   | –– |   |
|                                                         |                                                              |                                                       | 32            |           |   |   | (76 | ) |
| Effect of exchange rate changes on cash and cash equivalents |                                                              |                                                       | 1             |           |   |   | (1 | ) |
| Net decrease in cash and cash equivalents          |                                                              |                                                       | (7            | )              |   |   | (17 | ) |
| Cash and cash equivalents at beginning of period        |                                                              |                                                       | 36            |           |   |   | 41 |   |
| Cash and cash equivalents at end of period              |                                                              | $                                                          | 29            |           |   | $ | 24 |   |

----

|                                                    | Defined Benefits |          | Postretirement |                                                                                                                                   |   |
|---------------------------------------------------------|------------------|---------------|----------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                    |             | Qualified     |           | Supplemental                                                                                                                           |   | Total |   | Benefits |   |
|                                                    |             | 2010          |           | 2009                                                                                                                                   |   | 2010 |   | 2009 |   | 2010 |   | 2009 |   | 2010 |   | 2009 |   |
|                                                    |             | (In millions) |           |
| Service costs – benefits earned during the period | $                | 6             | $              | 6                                                                                                                                 | $      | –– | $ | –– | $ | 6 | $ | 6    | $ | –– | $ | –– |   |
| Interest cost on projected benefit obligation           |             | 20            |           | 20                                                                                                                                |   | 1 |   | –– |   | 21 |   | 20    |   | 2 |   | 2 |   |
| Expected return on plan assets                          |             | (19           | )              | (20                                                                                                                               | )      | –– |   | –– |   | (19 | ) | (20    | ) | –– |   | –– |   |
| Amortization of prior service costs                     |             | 1             |           | 1                                                                                                                                 |   | 1 |   | 1 |   | 2 |   |     2  |   | –– |   | –– |   |
| Amortization of actuarial net loss                      |             | 5             |           | 2                                                                                                                                 |   | –– |   | –– |   | 5 |   |        2    |   | –– |   | –– |   |
| Defined benefit expense                                 | $                | 13            | $              |                       9  | $      | 2 | $ | 1 | $ | 15 | $ | 10    | $ | 2 | $ | 2 |   |

----

|                                                                       |   | First Quarter  |   |
|----------------------------------------------------------------------------|--------|----------------|--------|
|                                                                       |   | 2010           |   |   | 2009 |   |
|                                                                       |   | (In millions)  |   |
| Cash-settled restricted or performance stock units                         | $      | 4              |   | $ | 4 |   |
| Stock-settled restricted stock units                                       |   | –– |   |   | –– |   |
| Stock options                                                              |   | 1              |   |   | 3 |   |
|   Total share-based compensation expense                         |   | 5              |   |   | 7 |   |
| Fixed value cash awards                                                    |   | 1              |   |   | 2 |   |
|   Total share-based and long-term incentive compensation expense | $      | 6              |   | $ | 9 |   |

|                                                           |   | First Quarter |   |
|----------------------------------------------------------------|--------|---------------|--------|
|                                                           |   | 2010          |   |   | 2009 |   |
|                                                           |   | (In millions) |   |
| Cost of sales                                                  | $      | 1             |   | $ | 2 |   |
| General and administrative expense                             |   | 5             |   |   | 7 |   |
| Total share-based and long-term incentive compensation expense | $      | 6             |   | $ | 9 |   |

|                                 |           | Cash-Settled Units                                                                                                                                                                                                                |          | Weighted Average Grant Date Fair Value Per Share |   | Aggregate Current Value |
|--------------------------------------|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------------------------------------------------|--------|-------------------------|
|                                 | (In thousands) |                                                                                                                                                                                                                              | (In millions) |
| Not vested beginning of the year     |           |                                2,753                         |          | $   18                            |   |                    |   |
| Granted                              |           |                                  599                    |          |      17                      |   |                    |   |
| Vested and settled                   |           |                                 (512                    | )             |      41                      |   |                    |   |
| Forfeited                            |           |                                    (4    | )             |      27                      |   |                    |   |
| Not vested end of first quarter 2010 |           |                              2,836                                     |          |   14                                        |   | $                       | 60 |

----

|                                 |           | Stock-Settled Units                    |          | Weighted Average Grant Date Fair Value Per Share    |   | Aggregate Current Value |
|--------------------------------------|----------------|----------------------------------------|---------------|-----------------------------------------------------|--------|-------------------------|
|                                 | (In thousands) |                                   | (In millions) |
| Not vested beginning of the year     |           | ––  –           |          | $   ––    |   |                    |   |
| Granted                              |           | 369                |          | 20                                   |   |                    |   |
| Vested and settled                   |           | ––     |          | ––                       |   |                    |   |
| Forfeited                            |           | ––     |          | ––                       |   |                    |   |
| Not vested end of first quarter 2010 |           | 369                |          | $  20                      |   | $                       | 8  |

|                                  |   | Shares                  |   | Weighted Average Exercise Price Per Share |                                       | Weighted Average Remaining Contractual Term |   | Aggregate Intrinsic Value (Current value less exercise price) |   |
|---------------------------------------|--------|-------------------------|--------|-------------------------------------------|--------------------------------------------|---------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                  |   | (In thousands)          |   |                                      |                                       | (In years)                                  |   | (In millions)                                                 |   |
| Outstanding beginning of the year     |   | 7,317    |   | $  15            |         |                                        |   |                                                          |   |
| Granted                               |   | 629      |   | 17                         |                                       |                                        |   |                                                          |   |
| Exercised                             |   | (160     | )      | 11                         |                                       |                                        |   |                                                          |   |
| Forfeited                             |   | (15      | )      | 16                         |                                       |                                        |   |                                                          |   |
| Outstanding end of first quarter 2010 |   | 7,771    |   | 15                         |                                       | 7                                      |   | $   48                                         |   |
|                                  |   |                    |   |                                      |                                       |                                        |   |                                                          |   |
| Exercisable end of first quarter 2010 |   | 4,741    |   | 16                         |                                       | 6                                      |   | $   25                                         |   |

|                                                           | First Quarter             |   |
|----------------------------------------------------------------|---------------------------|--------|
|                                                           | 2010                      |   |   | 2009 |   |
| Expected dividend yield                                        | 3.2        | %      |   | 3.2    | % |
| Expected stock price volatility                                | 66.6       | %      |   | 57.5    | % |
| Risk-free interest rate                                        | 3.2        | %      |   | 2.6    | % |
| Expected life of options (in years)                            | 8     |   |   | 8     |   |
|                                                           |                      |   |   |   |   |
| Weighted average estimated fair value of options granted  | $ 10.23    |   |   | $  2.49    |   |

----

|                                                                  |   | First Quarter                          |   |
|-----------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                  |   | 2010                                   |   |   | 2009 |   |
|                                                                  |   | (In millions)                          |   |
| Equity in earnings of joint ventures                                  | $      | ––     |   | $ | 1     |   |
| Gain (loss) on sale or retirement of operating property and equipment |   | (1                 | )      |   | ––     |   |
| Facility closures                                                     |   | (10                | )      |   | (3     | ) |
| Alternative fuel mixture tax credits                                  |   | 10                 |   |   | ––     |   |
| Litigation and other                                                  |   | ––     |   |   | (1     | ) |
| Other operating income (expense)                                      | $      | (1                 | )      | $ | (3     | ) |

|                                                            |   | First Quarter                  |   |
|-----------------------------------------------------------------|--------|--------------------------------|--------|
|                                                            |   | 2010                           |   |   | 2009 |   |
|                                                            |   | (In millions)                  |   |
| Net income (loss)                                               | $      | (5              | )      | $ | 36    |   |
| Other comprehensive income, net of taxes:                       |   |       |   |   |   |   |
|     Foreign currency translation adjustment |   | 4               |   |   | 2    |   |
|     Defined benefit plans                   |   | 5               |   |   | 3    |   |
| Other comprehensive income                                      |   | 9               |   |   | 5    |   |
| Comprehensive income                                            | $      | 4               |   | $ | 41    |   |

----

|                                                                                                          | First Quarter |
|---------------------------------------------------------------------------------------------------------------|---------------|
|                                                                                                          | 2010          |   | 2009 |
|                                                                                                          | (In millions) |
| Earnings for basic and diluted earnings per share:                                                            |          |   |   |   |   |   |   |
|    Net income (loss)                                                                           | $             | (5 | ) |   | $ | 36 |   |
|    Less: Distributed and undistributed amounts allocated to participating securities           |          | –– |   |   |   | –– |   |
|                                                                                                          |          | (5 | ) |   |   | 36 |   |
|    Less: Net (income) loss attributable to noncontrolling interest of special purpose entities |          | 1 |   |   |   | (1 | ) |
|    Net income (loss) available to common shareholders                                          | $             | (4 | ) |   | $ | 35 |   |
| Weighted average shares outstanding:                                                                          |          |   |   |   |   |   |   |
|    Weighted average shares outstanding — basic                                      |          | 107.7 |   |   |   | 106.7 |   |
|    Dilutive effect of stock options                                                            |          | 1.5 |   |   |   | –– |   |
|    Weighted average shares outstanding — diluted                                    |          | 109.2 |   |   |   | 106.7 |   |

|                                                   | First Quarter |
|--------------------------------------------------------|---------------|
|                                                   |          | 2010 |   |   | 2009 |
|                                                   |          | (Shares in thousands) |
| Options held                                           |          | 502 |   |   | 1,023 |
| Options exercisable                                    |          | 486 |   |   | 875 |
| Weighted average exercise price                        | $             | 18 |   | $ | 16 |
| Weighted average remaining contractual term (in years) |          | 5 |   |   | 5 |

----

|                                                                      |   | Corrugated Packaging               |   | Building Products                                    |   | Items Not Included in Segments and Eliminations                             |   | Total                            |   |
|---------------------------------------------------------------------------|--------|------------------------------------|--------|------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|----------------------------------|--------|
| For First Quarter 2010 or at First Quarter-End 2010:                      |   |                               |   |                                                 |   |                                                                        |   |                             |   |
| (In millions)                                                             |   |                               |   |                                                 |   |                                                                        |   |                             |   |
| Revenues from external customers                                          |   | $     752 |   | $     153    |   | $       ––    |   | $ 905        |   |
| Depreciation and amortization                                             |   | 35                                 |   | 11                                    |   | 2                                                            |   | 48                |   |
| Equity income from joint ventures                                         |   | ––                     |   | ––                        |   | ––                                               |   | ––    |   |
| Income (loss) before taxes                                                |   | 46                                 |   | (9                                    | )      | (40                                                          | )(a)   | (3                | )      |
| Total assets                                                              |   | 2,333                              |   | 555                                   |   | 2,845                                                        |   | 5,733             |   |
| Investment in equity method investees   and joint ventures |   | 3                                  |   | 26                                    |   | ––                                               |   | 29                |   |
| Goodwill                                                                  |   | 265                                |   | 129                                   |   | ––                                               |   | 394               |   |
| Capital expenditures                                                      |   | 25                                 |   | 4                                     |   | 4                                                            |   | 33                |   |
|                                                                      |   |                               |   |                                                 |   |                                                                        |   |                             |   |
| For First Quarter 2009 or at First Quarter-End 2009:                      |   |                               |   |                                                 |   |                                                                        |   |                             |   |
| (In millions)                                                             |   |                               |   |                                                 |   |                                                                        |   |                             |   |
| Revenues from external customers                                          |   | $     790 |   | $     151    |   | $       ––    |   | $ 941        |   |
| Depreciation and amortization                                             |   | 36                                 |   | 12                                    |   | 3                                                            |   | 51                |   |
| Equity income from joint ventures                                         |   | ––                     |   | 1                                     |   | ––                                               |   | 1                 |   |
| Income (loss) before taxes                                                |   | 105                                |   | (2                                    | )      | (37                                                          | )(a)   | 66                |   |
| Total assets                                                              |   | 2,345                              |   | 581                                   |   | 2,909                                                        |   | 5,835             |   |
| Investment in equity method investees   and joint ventures |   | 3                                  |   | 26                                    |   | ––                                               |   | 29                |   |
| Goodwill                                                                  |   | 265                                |   | 129                                   |   | ––                                               |   | 394               |   |
| Capital expenditures                                                      |   | 16                                 |   | 3                                     |   | ––                                               |   | 19                |   |

|                                                                                                                |   | First Quarter                    |   |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                                |   | 2010                             |   |   | 2009 |   |
|                                                                                                                |   | (In millions)                    |   |
| General and administrative expense                                                                                  | $      | (18               | )      | $ | (17    | ) |
| Share-based and long-term incentive compensation                                                                    |   | (6                | )      |   | (9    | ) |
| Other operating income (expense)                                                                                    |   | ––    |   |   | (4    | ) |
| Other non-operating income                                                                                          |   | ––    |   |   | 10    |   |
| Net interest income (expense) on financial assets and nonrecourse financial liabilities of special purpose entities |   | (3                | )      |   | 2    |   |
| Interest expense                                                                                                    |   | (13               | )      |   | (19    | ) |
|                                                                                                                | $      | (40               | )      | $ | (37    | ) |
|                                                                                                                |   |                             |   |   |   |   |
| Other operating income (expense) applies to:                                                                        |   |                             |   |   |   |   |
|   Corrugated packaging                                                                                    | $      | ––    |   | $ | (2    | ) |
|   Building products                                                                                       |   | ––    |   |   | ––    |   |
|   Unallocated                                                                                             |   | ––    |   |   | (2    | ) |
|                                                                                                                | $      | ––    |   | $ | (4    | ) |

----

|                  | At First Quarter-End 2010  | At Year-End 2009  |                 |
|-----------------------|---------------------------------|------------------------|----------------------|
|                  | Carrying Value             | Fair Value        | Carrying Value  | Fair Value  | Valuation Technique  |
|                  | (In millions)                   |
| Financial Liabilities |                            |                   |                 |   |   |
| Fixed rate debt       | $555                            | $589                   | $555                 | $580 | Level 2 - Market Approach |

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

| ·   | general economic, market or business conditions |
|--------------------|-------------------------------------------------|

| ·   | the opportunities (or lack thereof) that may be presented to us and that we may pursue |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | fluctuations in costs and expenses including the costs of  raw materials, purchased energy, and freight |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | changes in interest rates |
|--------------------|---------------------------|

| ·   | current conditions in financial markets could adversely affect our ability to finance our operations |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | demand for new housing |
|--------------------|------------------------|

| ·   | accuracy of accounting assumptions related to impaired assets, pension and postretirement costs, contingency reserves, and income taxes |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | competitive actions by other companies |
|--------------------|----------------------------------------|

| ·   | changes in laws or regulations |
|--------------------|--------------------------------|

| ·   | our ability to execute certain strategic and business improvement initiatives |
|--------------------|-------------------------------------------------------------------------------|

| ·   | the accuracy of certain judgments and estimates concerning the integration of acquired operations |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | other factors, many of which are beyond our control |
|--------------------|-----------------------------------------------------|

----

----

|                                                                           |                                                                                                                | First Quarter                  |                             |
|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------------------------------|----------------------------------|
|                                                                           |                                                                                                                | 2010                           |                             |   | 2009 |   |
|                                                                           |                                                                                                                | (In millions,except per share) |
| Revenues                                                                       |                                                                                                                |                           |                             |   |   |   |
|                                                                           | Corrugated packaging                                                                                                | $                              | 752               |   | $ | 790    |   |
|                                                                           | Building products                                                                                                   |                           | 153               |   |   | 151    |   |
|                                                                           | Total revenues                                                                                                      | $                              | 905               |   | $ | 941    |   |
| Segment operating income                                                       |                                                                                                                |                           |                             |   |   |   |
|                                                                           | Corrugated packaging                                                                                                | $                              | 46                |   | $ | 105    |   |
|                                                                           | Building products                                                                                                   |                           | (9                | ) |   | (2    | ) |
|                                                                           | Total segment operating income                                                                                      |                           | 37                |   |   | 103    |   |
| Items not included in segments                                                 |                                                                                                                |                           |                             |   |   |   |
|                                                                           | General and administrative expense                                                                                  |                           | (18               | ) |   | (17    | ) |
|                                                                           | Share-based and long-term incentive compensation                                                                    |                           | (6                | ) |   | (9    | ) |
|                                                                           | Other operating income (expense)                                                                                    |                           | ––    |   |   | (4    | ) |
|                                                                           | Other non-operating income                                                                                          |                           | ––    |   |   | 10    |   |
|                                                                           | Net interest income (expense) on financial assets and nonrecourse financial liabilities of special purpose entities |                           | (3                | ) |   | 2    |   |
|                                                                           | Interest expense on debt                                                                                            |                           | (13               | ) |   | (19    | ) |
| Income (loss) before taxes                                                     |                                                                                                                | (3              | )                                |   | 66    |   |
| Income tax (expense) benefit                                                   |                                                                                                                | (2              | )                                |   | (30    | ) |
| Net income (loss)                                                              |                                                                                                                | (5              | )                                |   | 36    |   |
| Net income attributable to noncontrolling interest of special purpose entities |                                                                                                                | 1               |                             |   | (1    | ) |
| Net income (loss) attributable to Temple-Inland Inc.                           | $                                                                                                                   | (4              | )                                | $ | 35    |   |
|                                                                           |                                                                                                                |                           |                             |   |   |   |   |
| Average basic shares outstanding                                               |                                                                                                                | 107.7           |                             |   | 106.7    |   |
| Average diluted shares outstanding                                             |                                                                                                                | 109.2           |                             |   | 106.7    |   |
|                                                                           |                                                                                                                |                           |                             |   |   |   |
| Earnings (loss) per basic share                                                | $                                                                                                                   | (0.04           | )                                | $ | 0.33    |   |
| Earnings (loss) per diluted share                                              | $                                                                                                                   | (0.04           | )                                | $ | 0.33    |   |
|                                                                           |                                                                                                                |                           |                             |   |   |   |
| ROI, annualized                                                                |                                                                                                                | 2.0             | %                                |   | 11.2    | % |

| ·   | We experienced lower prices and higher volumes, on a per week basis, for our corrugated packaging products compared with first quarter 2009.  We also experienced higher prices and lower volumes for lumber and lower prices and higher volumes for gypsum wallboard.  The positive impact on our volumes is principally due to improved economic conditions. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Significant increase in input costs, principally recycled fiber, more than offset our continuing initiatives to lower costs, improve asset utilization, and increase operating efficiencies. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other operating income (expense) includes a $10 million charge associated with facility closures related to Box Plant Transformation II and a $10 million benefit related to alternative fuel mixture tax credits. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We recognized one-time income tax expense of $3 million related to the impact of the Patient Protection and Affordable Care Act on the Medicare Part D retiree drug subsidy program. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We experienced higher prices and lower volumes, on a per week basis, for our corrugated packaging products compared with first quarter 2008.  We also experienced higher prices for gypsum wallboard and medium density fiberboard but lower prices for lumber and lower volumes for particleboard, medium density fiberboard and lumber.  Economic conditions had a negative impact on our shipments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our manufacturing operations benefited from a decline in most key input costs and from our continuing initiatives to lower costs, improve asset utilization, and increase operating efficiencies. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Share-based and long-term incentive compensation increased $5 million compared with first quarter 2008, of which $4 million was due to the effect of our higher share price on our cash settled awards compared with our share price at year-end 2008. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We incurred $4 million of costs, of which $3 million was primarily associated with 2008 facility closures and severance related to employment reductions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We recognized a gain of $10 million in connection with the purchase and retirement of $53 million of our long-term debt. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

|                     |   | First Quarter         |   |
|--------------------------|--------|-----------------------|--------|
|                     |   | 2010                  |   | 2009 |   |
|                     |   | (Dollars in millions) |   |
| Revenues                 | $      | 752              |   | $ | 790  |   |   |
| Costs and expenses       |   | (706             | )      |   | (685  | ) |   |
| Segment operating income | $      | 46               |   | $ | 105  |   |   |
|                     |   |                  |   |   |   |   |   |
| Segment ROI              |   | 9.1              | %      |   | 19.9  | % |   |

----

|                                             |   | First Quarter 2010 versus First Quarter 2009 |
|--------------------------------------------------|--------|---------------------------------------------------|
|                                             |   | Increase/(Decrease)                               |
| Corrugated packaging                             |   |                                              |   |
|   Average prices                       |   | (8                                 | )% |
|   Shipments, average week              |   | 4                                  | % |
|   Industry shipments, average week (a) |   | 2                                  | % |
|                                             |   |                                              |   |
| Paperboard                                       |   |                                              |   |
|   Average prices                       |   | 3                                  | % |
|   Shipments, in thousand tons          |   | 2                                  |   |

| (a)   | Source: Fibre Box Association |
|-----------------|-------------------------------|

|                            |   | First Quarter 2010 versusFirst Quarter 2009 |
|---------------------------------|--------|---------------------------------------------|
|                            |   | Increase/(Decrease)(In millions)            |
| Wood fiber                      | $      | 9                            |   |
| Recycled fiber                  |   | 53                           |   |
| Energy, principally natural gas |   | 3                            |   |
| Freight                         |   | 5                            |   |
| Chemicals                       |   | (4                           | ) |
| Depreciation                    |   | (1                           | ) |

|                                                            | First Quarter         |
|-----------------------------------------------------------------|-----------------------|
|                                                            | 2010                  |   | 2009 |
| Number of converting facilities (at quarter-end)                | 62     | (a) |   | 63    |   |
| Corrugated packaging shipments, in thousand tons                | 846    |   |   | 829    |   |
| Paperboard production, in thousand tons                         | 993    |   |   | 955    |   |
| Percent containerboard production used internally               | 93     | %    |   | 93    | %    |
| Percent of total fiber requirements sourced from recycled fiber | 44     | %    |   | 44    | %    |

----

|                            |   | First Quarter         |
|---------------------------------|--------|-----------------------|
|                            |   | 2010                  |   | 2009 |
|                            |   | (Dollars in millions) |
| Revenues                        | $      | 153              |   | $ | 151  |   |
| Costs and expenses              |   | (162             | ) |   | (153  | ) |
| Segment operating income (loss) | $      | (9               | ) | $ | (2  | ) |
|                            |   |                  |   |   |   |   |
| Segment ROI                     |   | (7.2             | )% |   | (1.5  | )% |

|              | First Quarter 2010 versusFirst Quarter 2009 |
|-------------------|---------------------------------------------|
|              | Increase/(Decrease)                         |
| Lumber:           |                                        |   |
|              | Average prices                              | 29    | % |
|              | Shipments                                   | (16    | )% |
| Gypsum wallboard: |                                        |   |
|              | Average prices                              | (19    | )% |
|              | Shipments                                   | 8    | % |
| Particleboard:    |                                        |   |
|              | Average prices                              | (7    | )% |
|              | Shipments                                   | ––    | % |
| MDF:              |                                        |   |
|              | Average prices                              | ––    | % |
|              | Shipments                                   | 3    | % |

|                            |   | First Quarter 2010 versusFirst Quarter 2009 |
|---------------------------------|--------|---------------------------------------------|
|                            |   | Increase/(Decrease)(In millions)            |
| Wood fiber                      | $      | (2                                     | ) |
| Energy, principally natural gas |   | ––                         |   |
| Freight                         |   | 2                                      |   |
| Chemicals                       |   | 1                                      |   |

----

|                                                               | First Quarter        |
|--------------------------------------------------------------------|----------------------|
|                                                               | 2010                 |   | 2009 |
| Number of converting and manufacturing facilities (at quarter-end) | 16    |   |   | 16    |   |
| Operating rates for:                                               |                 |   |   |   |   |
|                                                               | Lumber               | 61    | % |   | 71    | % |
|                                                               | Gypsum wallboard     | 57    | % |   | 55    | % |
|                                                               | Particleboard        | 59    | % |   | 62    | % |
|                                                               | MDF                  | 77    | % |   | 97    | % |

----

|                                                         |                                                        | First Quarter |
|--------------------------------------------------------------|-------------------------------------------------------------|---------------|
|                                                         |                                                        | 2010          |   |   | 2009 |
|                                                         |                                                        | (In millions) |   |
| Cash received from:                                          |                                                        |          |   |   |   |   |   |
|                                                         | Operations                                                  | $             | 52 |   |   | $ | 114 |   |
|                                                         | Working capital                                             |          | (51 | ) |   |   | (34 | ) |
|                                                         |    Cash received from (used for) operations  |          | 1 |   |   |   | 80 |   |
|                                                         | Borrowing, net                                              |          | 54 |   |   |   | –– |   |
|                                                         | Exercise of options                                         |          | 2 |   |   |   | –– |   |
| Total sources                                                |                                                        | 57            |   |   |   | 80 |   |
|                                                         |                                                        |          |   |   |   |   |   |
| Cash used to:                                                |                                                        |          |   |   |   |   |   |
|                                                         | Reduce borrowings, net                                      |          | –– |   |   |   | (40 | ) |
|                                                         | Pay fees related to special purpose entities and other debt |          | (3 | ) |   |   | (15 | ) |
|                                                         | Return to shareholders through dividends                    |          | (11 | ) |   |   | (10 | ) |
|                                                         | Reinvest in the business through:                           |          |   |   |   |   |   |   |
|                                                         | Capital expenditures                                        |          | (33 | ) |   |   | (19 | ) |
|                                                         | Joint ventures and other                                    |          | (18 | ) |   |   | (12 | ) |
| Total uses                                                   |                                                        | (65           | ) |   |   | (96 | ) |
| Effect of exchange rate changes on cash and cash equivalents |                                                        | 1             |   |   |   | (1 | ) |
| Change in cash and cash equivalents                          | $                                                           | (7            | ) |   | $ | (17 | ) |

----

|                                                                 |   | Committed Credit Agreements |   |   | Accounts Receivable Securitization Facility |                   |   | Total  |
|----------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------------------|------------------------|--------|--------|
|                                                                 |   | (In millions)               |
| Committed                                                            | $      | 825          |   |   | $                                           | 250     |   |   | $ | 1,075    |   |
|      Less: Borrowings and letters of credit |   | (71          | )      |   |                                        | (168    | )      |   |   | (239    | ) |
| Unused borrowing capacity at first quarter-end 2010                  | $      | 754          |   |   | $                                           | 82      |   |   | $ | 836    |   |

----

----

|               |                                                                                                                                      | Consolidated          |                     |   | Corrugated Packaging |                    |   | Building Products |                   |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------------------------|--------|----------------------|-------------------------|--------|-------------------|------------------------|
|               |                                                                                                                                      |                  |                     |   |                 |                    |   |              |                   |
| First Quarter 2010 |                                                                                                                                      | (Dollars in Millions) |
|               | Return:                                                                                                                                   |                  |                     |   |                 |                    |   |              |                   |   |
|               | Segment operating income determined in accordance with GAAP                                                                               | $                     | 37        |   | $                    | 46       |   | $                 | (9      | ) |
|               | Items not included in segments:                                                                                                           |                  |                     |   |                 |                    |   |              |                   |   |
|               |      General and administrative expense                                                                          |                  | (18       | )      |                 | N/A      |   |              | N/A     |   |
|               |      Share-based and long-term incentive          compensation |                  | (6        | )      |                 | N/A      |   |              | N/A     |   |
|               |                                                                                                                                      | $                     | 13        |   | $                    | 46       |   | $                 | (9      | ) |
|               |                                                                                                                                      |                  |                     |   |                 |                    |   |              |                   |   |
|               | Investment:                                                                                                                               |                  |                     |   |                 |                    |   |              |                   |   |
|               | Beginning of year total assets or segment assets determined in accordance with GAAP                                                       | $                     | 5,709     |   | $                    | 2,295    |   | $                 | 545     |   |
|               | Adjustments:                                                                                                                              |                  |                     |   |                 |                    |   |              |                   |   |
|               | Current liabilities (excluding current portion of long-term debt)                                                                         |                  | (471      | )      |                 | (276     | )      |              | (44     | ) |
|               | Financial assets of special purpose entities                                                                                              |                  | (2,475    | )      |                 | N/A      |   |              | N/A     |   |
|               | Municipal bonds related to capital leases included in other assets                                                                        |                  | (188      | )      |                 | N/A      |   |              | N/A     |   |
|               |                                                                                                                                      | $                     | 2,575     |   | $                    | 2,019    |   | $                 | 501     |   |
|               |                                                                                                                                      |                  |                     |   |                 |                    |   |              |                   |   |
|               | ROI, annualized                                                                                                                           |                  | 2.0       | %      |                 | 9.1      | %      |              | (7.2    | )% |
|               |                                                                                                                                      |                  |                     |   |                 |                    |   |              |                   |   |
| First Quarter 2009 |                                                                                                                                      |                  |                     |   |                 |                    |   |              |                   |
|               | Return:                                                                                                                                   |                  |                     |   |                 |                    |   |              |                   |   |
|               | Segment operating income determined in accordance with GAAP                                                                               | $                     | 103       |   | $                    | 105      |   | $                 | (2      | ) |
|               | Items not included in segments:                                                                                                           |                  |                     |   |                 |                    |   |              |                   |   |
|               |      General and administrative expense                                                                          |                  | (17       | )      |                 | N/A      |   |              | N/A     |   |
|               |      Share-based and long-term incentive          compensation |                  | (9        | )      |                 | N/A      |   |              | N/A     |   |
|               |                                                                                                                                      | $                     | 77        |   | $                    | 105      |   | $                 | (2      | ) |
|               |                                                                                                                                      |                  |                     |   |                 |                    |   |              |                   |   |
|               | Investment:                                                                                                                               |                  |                     |   |                 |                    |   |              |                   |   |
|               | Beginning of year total assets or segment assets determined in accordance with GAAP                                                       | $                     | 5,869     |   | $                    | 2,366    |   | $                 | 580     |   |
|               | Adjustments:                                                                                                                              |                  |                     |   |                 |                    |   |              |                   |   |
|               | Current liabilities (excluding current portion of long-term debt)                                                                         |                  | (445      | )      |                 | (257     | )      |              | (45     | ) |
|               | Financial assets of special purpose entities                                                                                              |                  | (2,474    | )      |                 | N/A      |   |              | N/A     |   |
|               | Municipal bonds related to capital leases included in other assets                                                                        |                  | (188      | )      |                 | N/A      |   |              | N/A     |   |
|               |                                                                                                                                      | $                     | 2,762     |   | $                    | 2,109    |   | $                 | 535     |   |
|               |                                                                                                                                      |                  |                     |   |                 |                    |   |              |                   |   |
|               | ROI, annualized                                                                                                                           |                  | 11.2      | %      |                 | 19.9     | %      |              | (1.5    | )% |

----

|                                           |   | First Quarter         |   |
|------------------------------------------------|--------|-----------------------|--------|
|                                           |   | 2010                  |   |   | 2009 |   |
| Revenues                                       |   | (Dollars in millions) |   |
| Corrugated Packaging                           |   |                  |   |   |   |   |
| Corrugated packaging                           | $      | 711                   |   | $ | 751 |   |
| Paperboard (a)                                 |   | 41                    |   |   | 39 |   |
|                                           |   | $                     | 752    |   | $ | 790 |   |
|                                           |   |                  |   |   |   |   |
| Building Products                              |   |                  |   |   |   |   |
| Lumber                                         | $      | 50                    |   | $ | 46 |   |
| Gypsum wallboard                               |   | 33                    |   |   | 38 |   |
| Particleboard                                  |   | 36                    |   |   | 38 |   |
| Medium density fiberboard                      |   | 18                    |   |   | 18 |   |
| Fiberboard                                     |   | 7                     |   |   | 3 |   |
| Other                                          |   | 9                     |   |   | 8 |   |
|                                           |   | $                     | 153    |   | $ | 151 |   |
|                                           |   |                  |   |   |   |   |
| Unit sales                                     |   |                  |   |   |   |   |
| Corrugated Packaging                           |   |                  |   |   |   |   |
| Corrugated packaging, thousands of tons        |   | 846                   |   |   | 829 |   |
| Paperboard, thousands of tons (a)              |   | 91                    |   |   | 89 |   |
|                                           |   |                  | 937    |   |   | 918 |   |
|                                           |   |                  |   |   |   |   |
| Building Products                              |   |                  |   |   |   |   |
| Lumber, million board feet                     |   | 158                   |   |   | 188 |   |
| Gypsum wallboard, million square feet          |   | 306                   |   |   | 283 |   |
| Particleboard, million square feet             |   | 107                   |   |   | 107 |   |
| Medium density fiberboard, million square feet |   | 35                    |   |   | 34 |   |
| Fiberboard, million square feet                |   | 34                    |   |   | 17 |   |

| _____________ |
|---------------|
| (a)           | Paperboard includes containerboard and light-weight gypsum facing paper. |

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

----

|                    |   | Increase (Decrease)                         |
|-------------------------|--------|---------------------------------------------|
|                    |   | First Quarter-End 2010                      |   | Year-End 2009 |
|                    |   | Variable Rate Debt                          |   | Special Purpose Entities - Net |   | Total |   | Variable Rate Debt |   | Special Purpose Entities - Net |   |                             Total   |
|                    |   | (In millions)                               |
| Change inInterest Rates |   |                                        |   |   |   |   |   |   |   |   |   |   |
| +2%                     |   | $    (4)                |   |     $    5 |   |  $    1 |   | $    (3) |   |     $    5 |   |  $    2 |
| +1%                     |   |       (2)          |   |           3 |   |        1 |   |       (2) |   |           3 |   |        1 |
|  -1%               |   |        2 |   |       N/A |   |        2 |   |        2 |   |       N/A |   |        2 |
|  -2%               |   |     N/A                 |   |      N/A                               |   |     N/A |   |     N/A |   |       N/A |   |     N/A |

| Item 4. | Controls and Procedures |
|---------|-------------------------|

----

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

| Period                               |   | Total Number of SharesPurchased |   | Average Price Paid per Share                              |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   | Maximum Number of Shares That May Yet be Purchased Under the Plansor Programs |
|--------------------------------------|--------|---------------------------------|--------|-----------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
| Month 1 (1/1/2010 – 1/31/2010) |   | ––                  |   |    $    –– |   |   | ––                                                                   |   | 6,650,000                                                                     |   |
| Month 2 (2/1/2010 – 2/29/2010) |   | 912                             | (b)    | $ 17.89                                                   |   |   | ––                                                                   |   | 6,650,000                                                                     |   |
| Month 3 (3/1/2010 – 3/31/2010) |   | 215                             | (b)    | $ 21.53                                                   |   |   | ––                                                                   |   | 6,650,000                                                                     |   |
| Total                                |   | 1,127                           |   | $ 18.59                                                   |   |   | ––                                                                   |   |                                                                          |   |

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| Item 4. | (Removed and Reserved) |
|---------|------------------------|

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

| 31.1 | – | Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2 | – | Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1 | – | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.      |
| 32.2 | – | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.      |

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|                | TEMPLE-INLAND INC.(Registrant)   |
|---------------------|--------------------------------------------|
| Dated: May 10, 2010 | By:                                        | /s/ Randall D. Levy |
|                |                                       | Name:  Randall D. Levy |
|                |                                       | Title:    Chief Financial Officer |
|                |                                       |   |
|                | By:                                        | /s/ Troy L. Hester |
|                |                                       | Name:  Troy L. Hester |
|                |                                       | Title:    Corporate Controller and            Principal Accounting Officer |

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| Exhibit No. | Description                                                                                                                                                        | Page No.       |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|  31.1  |  Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |   29 |
|  31.2  |  Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |   31 |
|  32.1  |  Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002            |   33 |
|  32.2  |  Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002            |   34 |

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