Exhibit 99.2

Third Quarter 2005 Review October 25, 2005

John V. Faraci Chairman & CEO

Marianne M. Parrs EVP & CFO

2

Forward-Looking Statements

These slides contain forward-looking statements. These statements reflect

management's current views and are subject to risks and uncertainties that could

cause actual results to differ materially from those expressed or implied in these

statements.  Factors which could cause actual results to differ relate to (i) market

and economic factors, including changes in the cost or availability of raw materials

and energy, competition, demand and pricing for the Company's products, the level

of housing starts, changes in

international

economic

conditions,

specifically

in

Brazil, Russia, Poland and China, changes in currency exchange rates, changes in

credit ratings issued by nationally recognized statistical rating organizations,

pension and healthcare costs

and

natural

disasters,

such

as

hurricanes, (ii) the

Company's transformation plan, including the ability to accomplish the

transformation plan, the impact of the plan on the Company's relationship with its

employees, customers and vendors and the ability to realize anticipated profit

improvement from the plan, and (iii) results of legal proceedings and compliance

costs, including unanticipated expenditures related to the cost of compliance with

environmental and

other

governmental

regulations

and

the uncertainty of the costs

and other effects of pending litigation.  We undertake no obligation to publicly

update

any

forward-looking

statements,

whether as a result of new information,

future events or otherwise. These and other factors that could cause or contribute

to actual results differing materially from

such

forward

looking

statements

are

discussed in greater detail in the company's Securities and Exchange Commission

filings.

3

During the course of this presentation, certain non-

U.S. GAAP financial information will be presented.

A reconciliation of those numbers to U.S. GAAP

financial measures is available on the company’s

website at www.internationalpaper.com

under

Investors.

Statements Relating to

Non-GAAP Financial Measures

4

Agenda

Third Quarter Review

Hurricane Impact

Fourth Quarter Outlook

Transformation Plan Update

Third Quarter Review

Hurricane Impact

Fourth Quarter Outlook

Transformation Plan Update

5

Third Quarter 2005 Summary

Volumes mixed

Pricing pressures on containerboard,

corrugated boxes, uncoated papers and pulp

Mill operations continued to improve

Energy costs increased due to Hurricanes

Katrina and Rita

Favorable impact from higher land sales and

lower tax rate

Volumes mixed

Pricing pressures on containerboard,

corrugated boxes, uncoated papers and pulp

Mill operations continued to improve

Energy costs increased due to Hurricanes

Katrina and Rita

Favorable impact from higher land sales and

lower tax rate

6

Diluted EPS from Continuing Operations

and Before Special Items*

*

A

reconciliation

to

GAAP

EPS

is

available

at

www.internationalpaper.com

under

Investors

.03

.11

.12

.16

.12

.32

.31

.28

.13

.20

.21

.18

.11

.40

.31

.42

.35

2001

2002

2003

2004

2005

1Q

1Q

3Q

1Q

3Q

2Q

4Q

2Q

4Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

.29

.33

3Q

7

3Q’05 vs. 2Q’05

$0.00

$0.10

$0.20

$0.30

$0.40

2Q'05

Price

Volume /

Downtime

Cost/Mix

Raw

Material

Land

Sales

Real

Estate

Tax

Other

3Q'05

$.01

EPS $ / Share

$.29

($.05)

Wood Costs     $.01     

Energy            ($.06)  

Packaging      ($.06)           

Uncoated       ($.02) 

Wood Prod.    ($.01) 

Coated            $.02

EPS from cont. ops before special items

($.07)

$.33

$.02

$.09

2Q05 Tax rate 35%  

3Q05 Tax rate 23%

$.06

($.06)

$.04

Cost –

US Mills   $.04     

Cost –

Other      ($.01)

Mix                     ($.02) 

8

9M’05 vs. 9M’04

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

9M'04

Price

Volume

Cost/Mix

Raw

Material

Land

Sales

Real

Estate

CorporateInterest

Tax

Other

9M'05

$.02

EPS $ / Share

$.83

($.30)

($.58)

EPS from cont. ops before special items

$.71

$.97

$.05

$.27

($.17)

($.05)

$.06

$.13

Wood Costs      ($.22)

Energy               ($.20)  

Caustic Soda    ($.11)

Other                 ($.05)

Paper             $.50                   

Packaging      $.25 

Other            ($.04)

2004 Tax rate 31%  

2005 Tax rate 27%

Downtime ($.29)                   

Volume     ($.01)

Pension         ($.14)                  

Supply Chain ($.07)      

Other              $.04

9

2006 Pension Assumptions

Pension Expense

•

Will depend upon plan earnings and discount rate at

December 31, 2005

-

Currently expected to increase

in

2006

by

$85

million

due to

the change

in mortality table

Pension Expense

•

Will depend upon plan earnings and discount rate at

December 31, 2005

-

Currently expected to increase

in

2006

by

$85

million

due to

the change

in mortality table

10

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Containerboard

Uncoated Papers

Pulp

Coated Papers

Bleached Board

European Papers

* Downtime is in thousand short tons after rationalization actions, excludes maintenance

215

65

50

270

Lack of Order Downtime

70

90

240

185

5

10

5

35

95

M  Short Tons

2002

2003

2004

2005

275

270

2Q05

3Q05

European Papers

15

15

Bleached Board

0

20

Uncoated Papers

120

185

Containerboard     140

50

11

Printing Papers

3

U.S. operations only. Uncoated excludes Fine Paper   

$  1,970

132

1

Sales

Earnings

3Q’05

2Q’05

$ Millions

$ Millions

Uncoated

3

Coated

3

Pulp

3

Europe

4

(uncoated)

($20)

$25     

($10)

5

Volume

Realizations/ton

$  1,895

149

2

3Q’05 Change vs 2Q’05:

3Q’05 Change vs 2Q’05:

2%

15%

5%

(4%)

2

Includes special charge of $17 million for severance and other

charges related to the indefinite shutdowns of 3 U.S. paper machines

1

Includes special charge of $6 million for severance and other charges

related to the indefinite shutdowns of 3 U.S. paper machines, and     

$3 million for Riegelwood environmental reserves

4

Europe is average commodity cut-size price, excluding Russia   

Average IP realization (includes the impact of mix across all grades)

12

Industrial Packaging

Average IP realization (includes the impact of mix across all grades)

$  1,115

33

1

Sales

Earnings

3Q’05

2Q’05

$ Millions

$ Millions

Containerboard

U.S. Container

($45)

($25)

Volume

Realizations/ton

$  1,240

85

3Q’05 Change vs 2Q’05:

3Q’05 Change vs 2Q’05:

6%

(3%)

1

Includes special charge of $4 million to adjust reserves previously provided

13

Consumer Packaging

Average IP realization (includes the impact of mix across all grades)

$  685

37

3

Sales

Earnings

3Q’05

2Q’05

$ Millions

$ Millions

Bleached Board

1

$5

Volume

Realizations/ton

$  650

41

3Q’05 Change vs 2Q’05:

3Q’05 Change vs 2Q’05:

(2%)

Converting Businesses

2

Sales Revenue

Flat

1

U.S. operations only

2

Excludes IPPM

3

Includes special charge of $1 million for environmental reserve

14

Forest Products

Average IP realization (includes the impact of mix across all grades)

$700 

272

1

Sales

Earnings

3Q’05

2Q’05

$ Millions

Lumber (mbf)

Plywood (msf)

($15)

($5)

Volume

Realizations/unit

$  605

191

1

3Q’05 Change vs 2Q’05:

3Q’05 Change vs 2Q’05:

2%

21%

1

Includes special charge of $2 million in the third quarter and $14 million in the second

quarter for costs associated with relocations of

Forest

Products

headquarters to Memphis

15

Special Items

•

Divestitures

(3)

•

Restructuring & Other                   (46)

•

Insurance Recoveries

109 

•

Tax Audit Finalization

-

Settlements                    517

-

Interest                             26

543

Special Items Total

603

$1.19

Special Items

•

Divestitures

(3)

•

Restructuring & Other                   (46)

•

Insurance Recoveries

109 

•

Tax Audit Finalization

-

Settlements                    517

-

Interest                             26

543

Special Items Total

603

$1.19

$MM

Diluted EPS

Special Items 3Q’05

16

Carter Holt Harvey

•

Tax Reserve Adjustment

for Audit Settlement                       (83)        (0.16)

•

Pre-Tax Gain on Sale                     29

0.06

•

Tax Benefit on Sale

332           0.65

Total

278

$0.55

Carter Holt Harvey

•

Tax Reserve Adjustment

for Audit Settlement                       (83)        (0.16)

•

Pre-Tax Gain on Sale                     29

0.06

•

Tax Benefit on Sale

332           0.65

Total

278

$0.55

$MM

Diluted EPS

Discontinued Operations 3Q’05

17

Earnings from Continuing Operations

and Before Special Items

$0.33

Special Items

1.19

Earnings from Continuing Operations

1.52

Discontinued Operations

0.55

Net Earnings

$2.07

Earnings from Continuing Operations

and Before Special Items

$0.33

Special Items

1.19

Earnings from Continuing Operations

1.52

Discontinued Operations

0.55

Net Earnings

$2.07

Reconciliation to 3Q’05

Diluted

Earnings Per Share

Diluted EPS

18

Hurricane Impact

People

•

No injuries

Facilities

•

No direct damage

•

Temporary outages at some facilities

Forestlands

•

No material damage to our forestlands

•

Logging / transportation costs significantly higher

People

•

No injuries

Facilities

•

No direct damage

•

Temporary outages at some facilities

Forestlands

•

No material damage to our forestlands

•

Logging / transportation costs significantly higher

19

Hurricane Impact

Energy

•

Slow recovery causing skyrocketing prices for

natural gas and fuel oil, squeezing margins

Chemicals

•

Shortages of optical brighteners, sulfuric acid,

caustic soda, wax

Transportation

•

Truck and rail availability an issue

•

Facing fuel adjustment surcharges

Energy

•

Slow recovery causing skyrocketing prices for

natural gas and fuel oil, squeezing margins

Chemicals

•

Shortages of optical brighteners, sulfuric acid,

caustic soda, wax

Transportation

•

Truck and rail availability an issue

•

Facing fuel adjustment surcharges

20

Fourth Quarter 2005 Outlook

Much higher raw material costs

•

$0.15 -

$0.20 per share higher than 3Q’05

Lower land / real estate sales

Volume flat -

seasonal weakness around

holidays

Average price realizations flat to down

•

Implementing IP’s announced increases in bleached

board, containerboard, boxes, coated paper and

market pulp

Continued progress in improving operations

Much higher raw material costs

•

$0.15 -

$0.20 per share higher than 3Q’05

Lower land / real estate sales

Volume flat -

seasonal weakness around

holidays

Average price realizations flat to down

•

Implementing IP’s announced increases in bleached

board, containerboard, boxes, coated paper and

market pulp

Continued progress in improving operations

21

Transformation Plan Update

Completed sale of Carter Holt Harvey equity

stake to Rank Group on September 21

•

US$1.14 billion in cash proceeds

•

After-tax gain of US$361 million

Targeting cash proceeds from initial asset sales    

for debt reduction

Maintaining focus on improving N. American

operations

Reinvestment plan under review -

taking a

cautious approach

Completed sale of Carter Holt Harvey equity

stake to Rank Group on September 21

•

US$1.14 billion in cash proceeds

•

After-tax gain of US$361 million

Targeting cash proceeds from initial asset sales    

for debt reduction

Maintaining focus on improving N. American

operations

Reinvestment plan under review -

taking a

cautious approach

22

Q & A

Q & A

23

Appendix

Appendix

24

Earnings by Industry Segment

Earnings by Industry Segment

Printing Papers

$141

$166

$160

$490

$385

Industrial Packaging

37

85

133

227

249

Consumer Packaging

38

41

50

102

126

Distribution

23

18

27

59

65

Forest Products

274

205

191

686

617

Other Businesses

5

7

7

22

31

Operating Profit

518

522

568

1,586

1,473

Interest Expense

(163)

(166)

(180)

(496)

(541)

Minority Interest

0

2

1

1

2

Corporate Items, net

(142)

(133)

(101)

(430)

(313)

Earnings from continuing operations

before income taxes, minority

interest & special items

$213

$225

$288

$661

$621

Earnings by Industry Segment

Printing Papers

$141

$166

$160

$490

$385

Industrial Packaging

37

85

133

227

249

Consumer Packaging

38

41

50

102

126

Distribution

23

18

27

59

65

Forest Products

274

205

191

686

617

Other Businesses

5

7

7

22

31

Operating Profit

518

522

568

1,586

1,473

Interest Expense

(163)

(166)

(180)

(496)

(541)

Minority Interest

0

2

1

1

2

Corporate Items, net

(142)

(133)

(101)

(430)

(313)

Earnings from continuing operations

before income taxes, minority

interest & special items

$213

$225

$288

$661

$621

$ Millions

2Q’05

2Q’05

3Q’04

3Q’04

3Q’05

3Q’05

9M’05

9M’05

9M’04

9M’04

Before special items

25

Forest Resources

Earnings Sources –

Gross Margin

•

Sales of Forestlands

$125

$67

$77

•

Harvest & Recreational Income

63

62

69

Forestland Expenses

(43)

(39)

(43)

Land Utilization (real estate),

Net of Expenses

65

39

22

Total EBIT

$210

$129

$125

Earnings Sources –

Gross Margin

•

Sales of Forestlands

$125

$67

$77

•

Harvest & Recreational Income

63

62

69

Forestland Expenses

(43)

(39)

(43)

Land Utilization (real estate),

Net of Expenses

65

39

22

Total EBIT

$210

$129

$125

$ Millions

2Q’05

2Q’05

3Q’04

3Q’04

3Q’05

3Q’05

26

* U.S. only. Uncoated excludes Fine Papers

Average IP realization (includes the impact of mix across all grades)

Average Sales Realizations

Forest

Products

$/ton

Packaging

$/ton

Printing

Papers*

Segments

300

406

687

450

495

836

831

2Q’05

Average Sales Realizations

303

368

676

445

481

749

780

3Q’04

323

394

651

385

479

860

825

Sep 05

Plywood, $/MSF

Lumber, $/MBF

Corrugated boxes*

Containerboard

Pulp

Coated

Uncoated

Grades

297

391

663

405

482

860

811

3Q’05

325

364

687

458

477

752

790

Sep 04

27

Before Special Items

Q1

223

(53)

(2)

168

24%

488.9

0.35

Q2

225

(79)

(3)

143

35%

487.4

0.29

Q3

213

(48)

(3)

162

23%

507.1

0.33

Special Items

Q1

(103)

36

-

(67)

35%

488.9

(0.14)

Q2

34

(107)

-

(73)

-

487.4

(0.15)

Q3

159

444

-

603

-

507.1

1.19

Earnings from Continuing Operations

Q1

120

(17)

(2)

101

14%

488.9

0.21

Q2

259

(186)

(3)

70

72%

487.4

0.14

Q3

372

396

(3)

765

-

507.1

1.52

2005 Earnings from Continuing

Operations

Pre-Tax 

Tax

MI

Net

ETR         Average

Diluted

Shares²

EPS¹

$ MM

MM Shares

$/Share

$ MM

$ MM

$ MM

MI

–

Minority

Interest;

Net

–

Net

Income;

ETR

–

Effective

Tax

Rate;

EPS

–

Earnings

per

Share

1

A

reconciliation

to

GAAP

EPS

is

available

at

www.internationalpaper.com

under

Investor

Information

2

Assuming

dilution

28

0

4

8

12

16

20

0

4

8

12

16

20

2000

June

2001

Dec

2002

Dec

2003

Dec

2004

Dec

2005

Sep

17.9

15.2

14.8

15.5

14.6

11.6

$ Billions

Reduced total debt by over 

$6 billion since June 2000

Committed to Reducing Debt

Includes

Carter

Holt

Harvey

debt

on

IP’s

balance

sheet

for

all

periods

excluding

September

2005

29

Impact of Higher Raw Material Costs

EBIT impact 3Q’05 vs. 2Q’05

Total of $30 million or $0.05 per share

negative impact in 3Q’05 versus 2Q’05

(50)

(40)

(30)

(20)

(10)

0

10

(50)

(40)

(30)

(20)

(10)

0

10

Energy

Wood -

Paper      

Mills

Wood -

Wood Prods.           

Plants

Other

EBIT ($)

4

(38)

4

30

Impact of Higher Raw Material Costs

EBIT impact 3Q’05 vs. 3Q’04

Total of $156 million or $0.25 per share

negative impact in 3Q’05 versus 3Q’04

(80)

(60)

(40)

(20)

0

(80)

(60)

(40)

(20)

0

Energy

Wood -

Paper       Wood Prods.            

Mills

Wood -

Plants

Caustic

EBIT ($)

(69)

(38)

(14)

(20)

(15)

Other

Soda

31

Impact of Higher Raw Material Costs

EBIT impact 9M’05 vs. 9M’04

(150)

(125)

(100)

(75)

(50)

(25)

0

(150)

(125)

(100)

(75)

(50)

(25)

0

Caustic

Soda

Energy

Other

EBIT ($)

(46)

(130)

(100)

(40)

(71)

Wood -

Paper        Wood Prods.

Mills

Wood -

Plants

Total of $387 million or $0.58 per share

negative impact in 9M’05 versus 9M’04

32

0

50

100

150

200

250

Jan

Mar

May

July

Sep

Nov

Jan

Mar

May

July

Sep

Nov

Jan

Mar

May

July

Sep

Index: Jan 2003 Natural Gas Costs = 100

2003

2004

Hurricanes drove natural gas  

costs higher in September

Natural Gas Costs

2005

Trended significantly higher in 3Q’05

33

U.S. Mills Wood Costs

90

100

110

120

Jan

Mar

May

July

Sep

Nov

Jan

Mar

May

July

Sep

Nov

Jan

Mar

May

July

Sep

Index: Jan 2003 Wood Costs = 100

2003

2004

* Delivered cost to  U.S. pulp & paper mills

Trended lower in 3Q’05

2005

Wood costs began rising

again in September

34

0

100

200

300

Jan

Mar

May

July

Sep

Nov

Jan

Mar

May

July

Sep

Nov

Jan

Mar

May

July

Sep

Index: Jan 2003 Caustic Soda Costs = 100

2003

2004

Caustic soda costs are

up 127% versus 1Q’03

Caustic Soda Costs

2005

Trended lower in 3Q’05

35

Energy

54

30

45

40

$9.50

$3.45

$5.80

$6.47

0

20

40

60

80

2002

2003

2004

2005 Forecast

0

2

4

6

8

10

Trillion BTUs

$/MMBTU

Natural Gas Consumed

Natural Gas Cost per unit

U.S. mills natural gas consumption

Natural gas consumption at

current U.S. pulp & paper mills

has decreased 45% since 2002

Total US Mill Energy Purchases before Natural Gas Hedges  -

$MM

$580                  $740                  $780                

$920

36

8

9

9

10

31

24

21

18

10

10

13

11

16

18

24

25

22

23

13

16

19

20

16

14

0%

100%

2002

2003

2004

2005

Energy

Natural gas as a % of total U.S. mills

MMBTU purchases is decreasing

% of Total

Natural Gas

Coal

Wood Waste

Fuel Oil

Other*

Electricity

$7.53

$2.89

$1.80

$6.15

$13.78

$4.92

2005 Sept. YTD Avg

Cost per mmbtu

Substitute lower cost energy

*Other includes shredded tires, recycled oil, purchased steam and any other fossil fuels

Sept. YTD

37

0

2

4

6

8

10

12

14

2000

2005 Sept YTD

Gas

Coal

Oil

Electricity

Steam

Other*

Reducing U.S. mill consumption per ton

MM BTU/Ton

Energy  

Natural gas consumed per ton of paper

produced in 2005 fell 55% and total energy

consumed per ton fell about 13% since 2000

* Other fuel category includes purchased bark, shredded tires & recycled motor oil

4.4

2.0

55%

13%

Natural Gas

Coal

Fuel Oil

Electricity

Steam

Other

38

Domestic Facilities

Key input indicative purchase levels

Natural Gas

MMbtus

38,000,000

# 6 Fuel Oil

BBLs

5,200,000

Coal

Tons

1,500,000

Wood

Tons

65,000,000

OCC

1

Tons

600,000

Caustic Soda

Tons

400,000

Sodium Chlorate

Tons

300,000

LD Polyethylene

Tons

100,000

Latex

Tons

45,000

Energy

Energy

Fiber

Fiber

Chemicals

Chemicals

Units

Units

Annual Purchases

Annual Purchases

1

Old corrugated containers

* 2005

Run Rate

*

*

*

39