First quarter 2009 net income excluding special items was $32 million, or $0.30 per diluted share, compared with fourth quarter 2008 net income excluding special items of $12 million, or $0.11 per diluted share, and first quarter 2008 net loss excluding special items of $5 million, or $0.05 per share. Results for first quarter 2009 include special items of $0.03 per share primarily consisting of an after-tax gain of $6 million, or $0.06 per diluted share, related to the purchase and retirement of long-term debt and an after-tax charge of $2 million, or $0.02 per diluted share, resulting from facility closures and headcount reductions.

                                                         First Quarter           Fourth Quarter                                                                                                                                                          2009        2008        2008                                                                                                             Net income per share                                   $0.33       ($0.12  )   ($0.06  )        Adjustment for special items                           ($0.03  )   $0.07       $0.17            Net income (loss) per share, excluding special items   $0.30       ($0.05  )   $0.11             -------------------------------------------------------------------------------  

Corrugated Packaging

                                            First Quarter   Fourth Quarter                                                                                                                        2009   2008     2008                                                                                        Segment Operating Income ($ in Millions)  $105   $55      $68               -------------------------------------------------------------------------------  

Corrugated packaging operating results for first quarter 2009 were a record $105 million. Earnings improved in first quarter 2009 compared with fourth quarter 2008 as higher box volumes and lower input and converting costs more than offset lower box prices. Operating results improved in first quarter 2009 compared with first quarter 2008 as higher box prices and lower input and converting costs more than offset lower volumes and downtime related expenses.

Building Products

                                             First Quarter   Fourth Quarter                                                                                                                          2009   2008     2008                                                                                         Segment Operating Income ($ in Millions)   ($2)   ($21)    ($14)             -------------------------------------------------------------------------------  

Building products operating results improved in first quarter 2009 compared with fourth quarter 2008 as higher volumes for all products and lower costs more than offset declining prices for lumber, particleboard and gypsum. Operating results improved in first quarter 2009 compared with first quarter 2008 as higher gypsum prices, a lower cost structure, and lower input costs more than offset lower lumber and particleboard volumes.

Comments

Doyle R. Simons, chairman and chief executive officer of Temple-Inland Inc., said, "We delivered outstanding operating results and generated $80 million of cash from operations in first quarter 2009 despite tough economic conditions.

"In Corrugated Packaging, we had record earnings in the quarter resulting from our box plant transformation, continued success of our PBL acquisition, our heavy orientation to the food and beverage market, our integrated system and lower input costs. We continued to match our production to our demand and our quarter end inventories were down compared with year ago and fourth quarter 2008 levels.

"In Building Products, we improved our operating results by $19 million compared with year ago levels despite the continued decline in housing starts. In the quarter, we benefited from our lower cost structure, declining input costs and our mix of products. We remain focused on matching our supply with demand, lowering costs and generating cash in this business.

"As we enter second quarter 2009, economic conditions continue to be uncertain. However, the actions we have taken to improve asset utilization, drive down our costs, match production to our demand and profitably grow our business positions us to continue to deliver solid relative results."

Temple-Inland will host a conference call on April 22, 2009 at 9:30 am ET to discuss results of first quarter 2009. To access the conference call, listeners calling from the United States and Canada should dial 1-866-394-6665 at least 15 minutes prior to the start of the call. The passcode for the conference call is: 94185457. Those wishing to access the call from outside the United States and Canada should dial 1-706-634-1667 and use the same passcode as set forth above. Replays of the call will be available for two weeks following completion of the live call and can be accessed at 1-800-642-1687 in the United States and Canada and at 1-706-645-9291 outside the United States and Canada. The passcode for the replay is: 94185457.

Temple-Inland Inc. is a manufacturing company focused on corrugated packaging and building products. The fully integrated corrugated packaging operation consists of 7 mills and 63 converting facilities. The building products operation manufactures a diverse line of building products for new home construction, commercial and repair and remodeling markets. Temple-Inland's address on the World Wide Web is www.templeinland.com.

This release contains "forward-looking statements" within the meaning of the federal securities laws. These statements reflect management's current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and uncertainties could cause our actual results to differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that might cause such differences include, but are not limited to: 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; and other factors, many of which are beyond our control.

This release includes non-GAAP financial measures. The required reconciliations to GAAP financial measures are included in this release.

  TEMPLE-INLAND INC.