Third Quarter       Second Quarter 
                                                                                    
                                                 2009      2008      2009           
                                                                                    
 Net income per share                            $0.61     $0.03     $0.61          
                                                                                    
 Adjustment for special items                    ($0.37)   ($0.06)   ($0.37)        
                                                                                    
 Net income per share, excluding special items   $0.24     ($0.03)   $0.24          


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Doyle R. Simons, chairman and chief executive officer of Temple-Inland Inc., said, "We had another exceptional quarter, delivering solid operating results, return on investment, and cash flow, despite continued tough economic conditions. We generated $188 million of cash from operations and reduced our long-term debt by $148 million in the quarter. For the first nine months of 2009, we have generated $440 million of cash from operations and reduced long-term debt by $313 million.

"In Corrugated Packaging, we had another outstanding quarter as our mills and box plants performed well. Results reflect our low cost position and continued benefits from our box plant transformation, the acquisition of PBL, our heavy orientation to the food and beverage market and our integrated system. We continue to match our supply with our demand, and our quarter-end inventories were down nine percent compared with third quarter 2008. Corrugated Packaging operating income for first nine months 2009 was $290 million, a record first nine months. Year-to-date return on investment was 18.3 percent.

"In Building Products, markets remain difficult. We generated $7 million of EBITDA in the quarter and continue to benefit from our low cost structure, geographic footprint, and favorable mix of products. We remain focused on generating cash and returning to profitability in this business.

"As we look forward, economic conditions, while still uncertain, have stabilized and appear to be on a slow path to recovery. We have demonstrated our ability to execute our strategy, generate cash and reduce debt over the course of the recession. We are confident that as the economy recovers we are well positioned to continue to provide solid relative results for shareholders."

 Corrugated Packaging                                                      
                                            Third Quarter   Second Quarter 
                                                                           
                                            2009   2008     2009           
                                                                           
 Segment Operating Income ($ in Millions)   $94    $50      $91            


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Corrugated Packaging operating income improved in third quarter 2009 compared with third quarter 2008 as lower mill and converting costs, the benefits of the PBL acquisition and less downtime more than offset lower box prices. Operating results improved compared with second quarter 2009 as less downtime and the benefits of box plant transformation and the PBL acquisition more than offset lower box prices.

 Building Products                                                         
                                            Third Quarter   Second Quarter 
                                                                           
                                            2009   2008     2009           
                                                                           
 Segment Operating Income ($ in Millions)   ($4)   ($6)     ($3)           


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Building Products operating results improved in third quarter 2009 compared with third quarter 2008 as lower costs in all products and higher gypsum volumes more than offset lower prices for all products and lower volumes for lumber and particleboard. Operating results were down slightly in third quarter 2009 compared with second quarter 2009 as higher lumber prices were offset by lower gypsum and particleboard prices.

Special items for third quarter 2009 after tax were $40 million, or $0.37 per diluted share, including: (i) income of $42 million, or $0.39 per diluted share, for alternative fuel mixture tax credits and (ii) a charge of $2 million, or $0.02 per diluted share, related to the purchase and early retirement of term debt during the third quarter.

Temple-Inland will host a conference call on October 22, 2009, at 9:30 am Eastern Time to discuss results of third 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: 34666901. Those calling 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: 34666901.

The conference call may also be accessed through Temple-Inland's Internet site, www.templeinland.com, by clicking on "Investor Relations -- Investor Events."

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. Except as required by law, we expressly disclaim any obligation to publically revise any forward looking statements contained in this release to reflect the occurrence of events after the date of this release.

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

 TEMPLE-INLAND INC.