SECOND QUARTER 2004 EARNINGS

John A. Luke, Jr.Chairman and CEO

James A. BuzzardPresident

Peter H. Vogel, Jr.

Interim Principal Financial Officer July 27, 2004

Second Quarter 2004

2

FORWARD-LOOKING STATEMENT

Certain statements in this document and elsewhere by management of the company that are neither reported financial results nor other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of each company, or industry results, to differ materially from those expressed or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to, events or circumstances which affect the ability of MeadWestvaco to realize improvements in operating earnings and cash flow expected from the company's productivity initiative; competitive pricing for the company's products; changes in raw materials pricing; energy and other costs; fluctuations in demand and changes in production capacities; changes to economic growth in the United States and international economies; government policies and regulations, including, but not limited to those affecting the environment and the tobacco industry; adverse results in current or future litigation, currency movements and other risk factors discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2003 and in other filings made from time to time with the SEC. MeadWestvaco undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised, however, to consult any further disclosures made on related subjects in the company's reports filed with the SEC.

Second Quarter 2004

3

SECOND QUARTER EPS

Net earnings of $48 million, or 24 cents per share

Gains on forestland sales: 7 cents per share

Restructuring charges: 2 cents per share

John A. Luke Jr.Chairman and

Chief Executive Officer

Second Quarter 2004

5

SECOND QUARTER HIGHLIGHTS

Synergies and productivity delivering results

Second quarter shows clear progress

Increased demand and volume helped – but price relief not yet a factor

Productivity initiatives driving results

Second Quarter 2004

6

SECOND QUARTER HEADLINES

Volume up in paper and packaging

Price increases in paper and paperboard will contribute to second-half results

Productivity initiative on track

Improved cash flow through working capital management

Forestland sales going well

Second Quarter 2004

7

DISCIPLINE AND PROFITABLE GROWTH

Disciplined capital spending

Debt reduction

Focused acquisitions

Strong dividend payout

Profitable growth: innovation, productivity and customer focus

James A. BuzzardPresident

Second Quarter 2004

9

$1 $(11) $9

$24 $(16)

$42 $(14) $32 $67

($20)($10)

$0$10$20$30$40$50$60$70$80

2nd Qtr 03 Actual

Mill Based Price

Other Price/Mix

Volume

Energy/Wood/Freight

CostLand Sales G

ains

Other**

2nd Qtr 04 Actual

($ Millions)

* Variance Analysis reconciling EBT (Earnings Before Tax)** Other includes: restructuring of $23 million, interest expense of $4 million, F/X of $2 million and other items for $3 million

MEADWESTVACOQ2 03 ACTUAL VS Q2 04 ACTUAL*

Revenue Productivity$33 million

Cost Productivity$26 million

Second Quarter 2004

10

PACKAGING

Operating profit $113 million

Sales $1.1 billion

Sales up 7%; profit up 22% over 2Q 03 Shipments increased for bleached board and Coated

Natural Kraft®

Substantial progress improving mill performance

Backlogs strengthening; price increases in some grades in second half

Second Quarter 2004

11

PACKAGING

Operating profit $113 million

Sales $1.1 billion

Converting: higher sales volume, improved productivity mix and lowering manufacturing costs Robust growth in media and entertainment

Productivity drives lower operating costs

Strong volume demand

Second Quarter 2004

12

PAPERS

Operating loss $25 million

Sales $583 million

Sales up 20% from prior year; 5% from first quarter

Shipments up 27% from prior year, well ahead of industry

Strong demand in coated papers markets

Inventory levels declined

Improved market share

Second Quarter 2004

13

Operating profit $50 million

Sales $302 million

Solid shipments of consumer products

Benefit from focused acquisitions

Enhanced distribution and customer service

CONSUMER & OFFICE PRODUCTS

Second Quarter 2004

14

SPECIALTY CHEMICALS

Operating profit $20 million

Sales $107 million

Continued growth in activated carbon products

Benefit of cost reductions and improved product mix

Peter H. VogelInterim Principal Financial Officer

Second Quarter 2004

16

KEY PRODUCTIVITY INFORMATION

$60 million in earnings improvement

2% reduction in working capital (as a percentage of sales)

Days inventory on hand dropped 6 days from June 30, 2003

Second Quarter 2004

17

KEY FINANCIAL INFORMATION

17

2004$ million, pre-tax 2Q 04

Restructuring $ 6

Interest expense $ 69

Debt to capital 47.4%

Pension income $ 18

Corporate and other expense $ 55

Cash flow items YTD

Cash from operations $230

Asset sales $144

Dividend payments $ 93

Capital expenditures $155

Second Quarter 2004

18

MOVING FORWARD

First half 2004 accomplishments

Synergies in place

Productivity initiative on track

Disciplined asset management

Growing demand

Continued focus on Quality, innovation, productivity

Strategy-based initiatives

Rigorous approach to our business

QUESTIONS

APPENDIX

VARIANCE ANALYSIS Q2 2004

(Including Productivity)

Q2 03 Actual vs Q2 04 Actual

Second Quarter 2004

23

$4$(8) $113 $4 $16

$4 $93

$0

$20

$40

$60

$80

$100

$120

2nd Qtr 03 Actual

Other Price/Mix

Volume

Energy/Wood/Freight

Cost

Other

2nd Qtr 04 Actual

PACKAGING SEGMENTQ2 03 ACTUAL VS Q2 04 ACTUAL

($ Millions)

Revenue Productivity$20 million

Cost Productivity$(4) million

Second Quarter 2004

24

$(25)

$23

$8

$4

$(7) $(1)

$(11)

$(42)

($60)

($50)

($40)

($30)

($20)

($10)

$0

2nd Qtr 03 Actual

Mill Based Price

Other Price/Mix

Volume

Energy/Wood/Freight

Cost

Other

2nd Qtr 04 Actual

PAPERS SEGMENTQ2 03 ACTUAL VS Q2 04 ACTUAL

($ Millions)

Revenue Productivity*$8 million

Cost Productivity$16 million

* Numbers may not add up due to rounding

Second Quarter 2004

25

$50 $(1) $1 $1 $49

$0

$20

$40

$60

2nd Qtr 03 Actual

Price / Mix

Volume

Other

2nd Qtr 04 Actual

CONSUMER & OFFICE PRODUCTSQ2 03 ACTUAL vs Q2 04 ACTUAL

($ Millions)

Revenue Productivity$2 million

Second Quarter 2004

26

$20 $(1) $5 $(2) $5

$3$10

$0

$10

$20

$30

2nd Qtr 03 Actual

Price / Mix

Volume

Energy/Freight

Cost

Other

2nd Qtr 04 Actual

SPECIALTY CHEMICALS SEGMENTQ2 03 ACTUAL VS Q2 04 ACTUAL

($ Millions)

Revenue Productivity$8 million

Cost Productivity$3 million

PRODUCTIVITY INITIATIVE Q2 03 Actual vs Q2 04 Actual

Second Quarter 2004

28

EARNINGS PRODUCTIVITY INITIATIVE Q2 03 ACTUAL VS Q2 04 ACTUAL

($ Millions)

Mill-Based Other Energy/ TotalBusiness Unit Pricing Price/Mix Volume Wood/Freight Cost Productivity*

Packaging ($0) $4 $16 ($8) $4 $16

Paper ($11) ($1) $8 ($7) $23 $24

Consumer & Office $0 $1 $1 $0 $0 $2

Specialty Chemicals $0 $3 $5 ($2) $5 $11

Total Operations ($11) $7 $30 ($17) $33 $53

Corporate & Other $0 $2 ($5) $1 $9 $7

Total Company ($11) $9 $24 ($16) $42 $60

Numbers may not add up due to rounding* Excluded from Productivity Initiative:- Cost initiatives exclude F/X, land sales gains, and assets sales gains- Revenue initiatives exclude price impact for mill-based businesses

Second Quarter 2004

29

Net operating working capital (NOWC) is defined as accounts receivable and inventory, less accounts payable

Reduction in NOWC is measured as a percent of sales, against 2003 sales levels. NOWC accounts are measured as the average of beginning and ending balance, a 2-point average, to accommodate for seasonality

The calculation of sales in the percent of sales calculation is annualized quarterly sales for the quarter being measured

We believe NOWC is a supplemental measure of our productivity initiative progress because these working capital items are more directly associated with factors that our businesses can influence through payment terms and other methods

Measuring NOWC productivity in terms of 2003 sales allows for the increase in NOWC necessary to support sales growth

WORKING CAPITAL PRODUCTIVITY INITIATIVE - DEFINITIONS

Second Quarter 2004

30

WORKING CAPITAL PRODUCTIVITY INITIATIVE – KEY DATA

($ Millions)

Reconciliation of GAAP Working Capital to Net Operating Working Capital

($ in millions) Actual Actual Actual Actual Actual Actual Actual12/31/02 03/31/03 06/30/03 09/30/03 12/31/03 03/31/04 06/30/04

Cash & Cash Equivalents 372$ 96$ 141$ 177$ 225$ 271$ 313$

Accounts Receivable ** 894$ 836$ 980$ 996$ 943$ 884$ 1,038$

Inventories ** 1,002$ 1,124$ 1,196$ 1,134$ 1,098$ 1,143$ 1,105$

Other Current Assets 163$ 180$ 163$ 161$ 160$ 173$ 171$ Current Assets 2,431$ 2,236$ 2,480$ 2,468$ 2,426$ 2,471$ 2,627$

Notes Payable & Current Maturities 363$ 324$ 675$ 632$ 269$ 281$ 281$

Accounts Payable ** 365$ 378$ 408$ 359$ 380$ 385$ 434$

Accrued Liabilities 912$ 865$ 957$ 884$ 867$ 840$ 932$ Current Liabilities 1,640$ 1,567$ 2,040$ 1,875$ 1,516$ 1,506$ 1,647$

GAAP Working Capital* 791$ 669$ 440$ 593$ 910$ 965$ 980$

Net Operating Working Capital** 1,531$ 1,582$ 1,768$ 1,771$ 1,661$ 1,642$ 1,709$ * GAAP Working Capital = Current Assets - Current Liabilities** Net Operating Working Capital = Accounts Receivable+Inventory-Accounts Payable

Q1 04 ACTUAL VS Q2 04 ACTUAL

Second Quarter 2004

32

($ Millions)

MEADWESTVACOQ1 04 ACTUAL VS Q2 04 ACTUAL

$(3) $13

$40

$46 $7 $2 $(46)

$8 $67

($20)

$0

$20

$40

$60

$80

$100

$120

1st Qtr 04 Actual

Mill Based Price

Other Price/Mix

Volume

Energy/Wood/Freight

CostLand Sales G

ains

Other

2nd Qtr 04 Actual

Second Quarter 2004

33

PACKAGING SEGMENTQ1 04 ACTUAL VS Q2 04 ACTUAL*

($ Millions)

* Numbers may not add up due to rounding

$113 $8$23

$2 $3

$5 $7 $65

$0

$20

$40

$60

$80

$100

$120

1st Qtr 04 Actual

Mill Based Price

Other Price/Mix

Volume

Energy/Wood/Freight

Cost

Other

2nd Qtr 04 Actual

Second Quarter 2004

34

PAPERS SEGMENTQ1 04 ACTUAL VS Q2 04 ACTUAL*

($ Millions)

$4 $2

$(25) $(32)

$6 $2 $2 $(9)

($40)

($30)

($20)

($10)

$0

1st Qtr 04 Actual

Mill Based Price

Other Price/Mix

Volume

Energy/Wood/Freight

Cost

Other

2nd Qtr 04 Actual

* Numbers may not add up due to rounding

Second Quarter 2004

35

CONSUMER & OFFICE PRODUCTSQ1 04 ACTUAL VS Q2 04 ACTUAL*

($ Millions)

$3 $50 $20

$29

$(2)

($20)

$0

$20

$40

$60

1st Qtr 04 Actual

Price / Mix

Volume

Cost

2nd Qtr 04 Actual

* Numbers may not add up due to rounding

Second Quarter 2004

36

SPECIALTY CHEMICALS SEGMENTQ1 04 ACTUAL VS Q2 04 ACTUAL*

($ Millions)

* Numbers may not add up due to rounding

$20 $(1)

$3 $5

$3$10

$0

$10

$20

$30

1st Qtr 04 Actual

Price / Mix

Volume

Cost

Other

2nd Qtr 04 Actual