• 

corrugated packaging, is a vertically integrated corrugated packaging operation that consists of:

• 

five linerboard mills,

• 

one corrugating medium mill, and

• 

79 converting and other facilities;

• 

forest products, manages our forest resources of approximately two million acres of timberland in Texas, Louisiana, Georgia, and Alabama, and manufactures a wide range of building products, including:

• 

lumber,

• 

particleboard,

• 

medium density fiberboard,

• 

gypsum wallboard, and

• 

fiberboard; and

• 

financial services, provides financial services in the areas of:

• 

consumer and commercial banking,

• 

mortgage banking,

• 

real estate development, and

• 

insurance brokerage.

Temple-Inland Inc. is a Delaware corporation that was organized in 1983. Its significant subsidiaries are:

• 

Inland Container Corporation I, a corrugated packaging holding company,

• 

Inland Paperboard and Packaging, Inc. (“Inland”), which together with Gaylord Container Corporation, operates our corrugated packaging segment,

• 

Gaylord Container Corporation (“Gaylord”),

• 

Temple-Inland Forest Products Corporation (“Temple-Inland FPC”), which operates our forest products segment,

• 

Temple-Inland Financial Services Inc., a financial services holding company,

• 

Guaranty Holdings Inc. I, a financial services holding company,

• 

Guaranty Bank (“Guaranty”), our savings bank, and

• 

Guaranty Residential Lending, Inc., which operates our mortgage banking business.

Our main raw material resource is wood fiber

Linerboard and corrugating medium are the principal materials used to make corrugated boxes. Our mills at Rome, Georgia; Bogalusa, Louisiana; and Orange, Texas, only manufacture linerboard. Our Ontario, California, and Maysville, Kentucky, mills are traditionally linerboard mills, but can manufacture corrugating medium. Our New Johnsonville, Tennessee, mill only manufactures corrugating medium. The principal raw material used by the Rome, Georgia; Orange, Texas; and Bogalusa, Louisiana, mills is virgin fiber. The Ontario, California, and Maysville, Kentucky, mills use only old corrugated containers (“OCC”).

Competition

We operate in highly competitive industries. The commodity nature of our manufactured products gives us little control over market pricing or market demand for our products. The level of competition in a given product or market may be affected by economic factors, including interest rates, housing starts, home repair and remodeling activities, and the strength of the dollar, as well as other market factors including supply and demand for these products, geographic location and the operating efficiencies of competitors. Our competitive position is influenced by varying factors depending on the characteristics of the products involved. The primary factors are product quality and performance, price, service, and product innovation.