Demand remains firm and containerboard supply now more closely matches demand.
Thus, assuming only the moderate economic growth widely predicted by many economists for 1998, domestic demand for containerboard should grow faster than the available supply, providing a favorable climate for prices to be increased further. Operating Results Production of containerboard increased to 332 thousand tons for the second quarter of fiscal 1998, compared to 309 thousand tons in the second quarter of last year. Unbleached kraft paper production decreased to 61 thousand tons versus 76 thousand tons for the same quarter in fiscal 1997, while corrugated shipments for second quarter fiscal 1998 increased to 3.5 billion square feet, compared to 3.3 billion square feet in the year earlier quarter. Gaylord Container Corporation is a major national manufacturer and distributor of corrugated containers and sheets, containerboard, unbleached kraft paper and multiwall bags. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.