OfficeMax Reports Third Quarter 2009 Financial Results and Announces Plan for Voluntary Excess Contribution of Company Stock to Pension Plan

OfficeMax Reports Third Quarter 2009 Financial Results and Announces Plan for
Voluntary Excess Contribution of Company Stock to Pension Plan

NAPERVILLE, Ill., Oct. 29 /PRNewswire/ -- OfficeMax Incorporated (NYSE: OMX)
today announced the results for its third quarter ended September 26, 2009.
Total sales were $1,831.9 million in the third quarter of 2009, a decline of
12.6% from the third quarter of 2008. For the third quarter of 2009,
OfficeMax reported net income available to OfficeMax common shareholders of
$5.7 million, or $0.07 per diluted share.

Sam Duncan, Chairman and CEO of OfficeMax, said, "We are proud of the progress
we are making with our business in this tough economy. While continued lower
sales levels strained our profitability this quarter, we managed to mitigate
the impact by reducing costs and improving our operations. Our relentless
focus on implementing disciplined growth initiatives, differentiating our
business, and increasing our productivity continue to significantly benefit
our performance."

Summary Consolidated Results

(in millions, except
per-share
amounts) 3Q 09 3Q 08 YTD 09 YTD 08
---------------------- ----- ------ ------ ------
Sales $1,831.9 $2,096.3 $5,401.5 $6,383.9
----- -------- -------- -------- --------
Sales growth (over prior year
period) -12.6% -15.4%
----------------------------- ----- -----
Operating income (loss) $25.2 $(681.5) $25.2 $(1,505.5)
---------------------- ----- ------- ----- ----------
Adjusted operating income $26.7 $54.3 $64.9 176.9
------------------------- ----- ----- ----- -----
Adjusted operating income margin 1.5% 2.6% 1.2% 2.8%
-------------------------------- --- --- --- ---
Adjusted diluted income per
common share $0.08 $0.36 $0.27 $1.29
--------------------------- ----- ----- ----- -----
Cash and cash equivalents $546.9 $234.5
------------------------- ------ ------
Available (unused) borrowing
capacity $504.9 $602.0
---------------------------- ------ ------

The company has calculated adjusted income and adjusted diluted income per
share which are non-GAAP financial measures that exclude the effect of certain
charges and items described in the footnotes to the accompanying financial
statements. A reconciliation to the company's GAAP financial results is
included in this press release.

Results for the third quarter of 2009 and 2008 included certain charges and
other items that are not considered indicative of core operating activities.
Third quarter 2009 results included $1.5 million of pre-tax severance and
other charges recorded in the Contract segment related to a reorganization of
our customer service centers. Third quarter 2008 results included a $735.8
million non-cash impairment charge (pre-tax) related to the timber installment
notes receivable from Lehman recorded in the Corporate and Other segment and
$18.2 million of additional net interest expense related to the timber
installment notes receivable and related securitization notes.

Excluding the items described above, adjusted operating income in the third
quarter of 2009 was $26.7 million, or 1.5% of sales, compared to adjusted
operating income of $54.3 million, or 2.6% of sales in the third quarter of
2008. Adjusted net income available to OfficeMax common shareholders in the
third quarter of 2009 was $6.6 million, or $0.08 per diluted share, compared
to adjusted net income available to OfficeMax common shareholders of $28.0
million, or $0.36 per diluted share, in the third quarter of 2008.

Contract Segment Results

(in millions) 3Q 09 3Q 08 YTD 09 YTD 08
------------ ----- ------ ------ ------

Sales $899.6 $1,049.1 $2,708.8 $3,356.1
----- ------ -------- -------- --------
Sales growth (over prior
year period) -14.3% -19.3%
---------------------- ----- -----
Gross profit margin 20.0% 21.8% 20.5% 22.1%
------------------- ---- ---- ---- ----
Adjusted operating income margin 1.1% 3.4% 1.6% 4.3%
-------------------------------- --- --- --- ---

OfficeMax Contract segment sales decreased 14.3% (12.8% after adjusting for
the foreign currency exchange rate impact) to $899.6 million in the third
quarter of 2009 compared to the third quarter of 2008, reflecting a U.S.
Contract operations sales decline of 15.4%, and an International Contract
operations sales decline of 11.6% in U.S. dollars (a sales decrease of 6.5% in
local currencies). The U.S. Contract sales decline in the third quarter
primarily reflects weaker sales from existing corporate accounts. Both U.S.
and International Contract operations showed modest improvements in the rates
of sales declines compared to the two previous quarters.

Contract segment gross margin decreased to 20.0% in the third quarter of 2009
from 21.8% in the third quarter of 2008, primarily due to softer market
conditions, a sales mix shift to a higher percentage of lower-margin
consumable items, lower sales of off-contract items, and higher customer
acquisition and retention expense. Contract segment operating, selling &
administrative expense as a percentage of sales increased to 18.9% in the
third quarter of 2009 from 18.4% in the third quarter of 2008, primarily due
to deleveraging of fixed operating expenses from lower sales and higher
incentive compensation expense. Contract segment operating income was $8.6
million in the third quarter of 2009. Contract segment adjusted operating
income was $10.1 million, or 1.1% of sales, in the third quarter of 2009
compared to operating income of $35.5 million, or 3.4% of sales, in the third
quarter of 2008.

Retail Segment Results
(in millions) 3Q 09 3Q 08 YTD 09 YTD 08
------------ ----- ----- ------ ------

Sales $932.3 $1,047.2 $2,692.7 $3,027.8
----- ------ -------- -------- --------
Same-store sales growth (over
prior year period) -11.5% -12.2%
----------------------------- ----- -----
Gross profit margin 27.4% 28.5% 27.5% 28.3%
------------------- ---- ---- ---- ----
Adjusted operating income margin 3.0% 2.8% 1.9% 2.0%
-------------------------------- --- --- --- ---

OfficeMax Retail segment sales decreased 11.0% to $932.3 million in the third
quarter of 2009 compared to the third quarter of 2008, reflecting a same-store
sales decrease of 11.5% (a same-store sales decrease of 10.0% in local
currencies), partially offset by sales from new stores. Retail same-store
sales for the third quarter of 2009 declined across all major product
categories primarily due to weaker small business and consumer spending,
unfavorable Mexican Peso exchange rates, and the influenza epidemic in Mexico.

Retail segment gross margin decreased to 27.4% in the third quarter of 2009
from 28.5% in the third quarter of 2008, primarily due to deleveraging of
fixed occupancy costs from the same-store sales decrease. Retail segment
operating, selling & administrative expense as a percentage of sales decreased
to 24.4% in the third quarter of 2009 compared to 25.7% in the third quarter
of 2008 primarily due to targeted cost controls, property tax settlements in
the third quarter of 2009, and lower store pre-opening expenses, partially
offset by deleveraging of payroll expenses due to lower sales and higher
incentive compensation expense. Retail segment operating income was $28.4
million, or 3.0% of sales, in the third quarter of 2009 compared to operating
income of $29.1 million, or 2.8% of sales in the third quarter of 2008.

OfficeMax ended the third quarter of 2009 with a total of 1,010 retail stores,
consisting of 932 retail stores in the U.S. and 78 retail stores in Mexico.
During the third quarter of 2009, OfficeMax closed one retail store in the
U.S. and one in Mexico. For the full year 2009, OfficeMax expects to open 12
retail stores, and to close up to 25 retail stores, of which, 11 have opened
and 23 have closed during the first nine months of 2009.

Corporate and Other Segment Results
The OfficeMax Corporate and Other segment includes support staff services and
certain other expenses that are not fully allocated to the Retail and Contract
segments. Corporate and Other segment operating expense was $11.7 million in
the third quarter of 2009 compared to adjusted operating income of $10.3
million in the third quarter of 2008. The increase was primarily due to
higher pension expense and incentive compensation expense.

Balance Sheet and Cash Flow
As of September 26, 2009, OfficeMax had total debt of $332.5 million,
excluding $1,470.0 million of timber securitization notes, which have recourse
limited to the timber installment notes receivable and related guarantees. At
the end of the third quarter of 2009, OfficeMax had $546.9 million in cash and
cash equivalents, and $504.9 million in available (unused) borrowing capacity.
The company's $504.9 million of unused borrowing capacity under both its
primary revolving credit facility and its new Canadian revolving credit
facility reflects a combined available borrowing base of $569.9 million, zero
outstanding borrowings, and $65.0 million of standby letters of credit.

During the first nine months of 2009, OfficeMax generated $369.1 million of
cash from operations which reflected significant reductions in inventory
levels and good working capital management and included $72 million of federal
tax refunds and $46 million from 2009 borrowings on accumulated earnings held
in company-owned life insurance policies.

OfficeMax invested $5.4 million for capital expenditures in the third quarter
of 2009 compared to $36.1 million in the third quarter of 2008. OfficeMax
expects capital expenditures for full year 2009 to be in the range of $30
million to $40 million.

Voluntary Excess Contribution to Pension Plan
OfficeMax also announced its intent to make a voluntary excess contribution of
approximately $100 million in OfficeMax common stock to its qualified pension
plans by the end of this year. The net effect of the contribution on earnings
per share, including the impact of increased shares outstanding, is expected
to be minimal in 2009 and accretive in 2010. Based on actuarial assumptions,
this excess 2009 contribution is expected to reduce required pension
contributions over the next five years by approximately $100 million.

As of December 27, 2008, the pension plan was underfunded by $435 million.
According to a current estimate of plan assets (including the impact of the
voluntary contribution of stock) and projected discounted obligations, the
underfunding would be reduced to approximately $300 million.

Outlook
Given the projected weak economic climate, OfficeMax reaffirms that its
expectations remain very cautious for the fourth quarter of 2009. The company
expects sales in the fourth quarter of 2009 will decline on a year-over-year
basis, but improve sequentially compared to the third quarter. The company
expects a greater gross margin rate decline on a year-over-year basis in the
fourth quarter of 2009 than it experienced in the third quarter, along with
additional incentive compensation expense accruals similar to the level
accrued in the third quarter. As a result, OfficeMax expects a fourth quarter
of 2009 operating loss.

Mr. Duncan concluded, "Given that we continue to anticipate macro employment
trends will not turn positive until well into 2010, we are maintaining our
prudent approach to managing our business and building upon our strong capital
position. We are confident that we are pursuing the right strategy and
initiatives to ensure we achieve sustainable benefits and competitive
advantages. The goal of our current actions and plans is to position our
business to return to recent peak profitability levels. We expect to share
these longer term plans during the first part of 2010."

Forward-Looking Statements
Certain statements made in this press release and other written or oral
statements made by or on behalf of the company constitute "forward-looking
statements" within the meaning of the federal securities laws, including
statements regarding the company's future performance, as well as management's
expectations, beliefs, intentions, plans, estimates or projections relating to
the future. Management believes that these forward-looking statements are
reasonable. However, the company cannot guarantee that future events will not
impact the return on the company stock contributed to the pension plan and
affect the future funding obligations we predict, or that its actual results
will be consistent with the forward-looking statements and you should not
place undue reliance on them. These statements are based on current
expectations and speak only as of the date they are made. The company
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of future events, new information or otherwise.
Important factors regarding the company that may cause results to differ from
expectations are included in the company's Annual Report on Form 10-K for the
year ended December 27, 2008, under Item 1A "Risk Factors", and in the
company's other filings with the SEC.

Conference Call Information
OfficeMax will host a webcast and conference call with analysts and investors
to review its third quarter 2009 financial results today at 10:00 a.m. Eastern
Time (9:00 a.m. Central Time). The live audio webcast of the conference call
can be accessed via the Internet by visiting the OfficeMax website at
http://investor.officemax.com. The webcast will be archived and available
online for one year following the call and will be posted on the
"Presentations" page located within the "Investors" section of the OfficeMax
website.

About OfficeMax
OfficeMax Incorporated (NYSE: OMX) is a leader in both business-to-business
office products solutions and retail office products. The OfficeMax mission
is simple. We help our customers do their best work. The company provides
office supplies and paper, in-store print and document services through
OfficeMax ImPress®, technology products and solutions, and furniture to
consumers and to large, medium and small businesses. OfficeMax customers are
served by over 30,000 associates through direct sales, catalogs, e-commerce
and more than 1,000 stores. To find the nearest OfficeMax, call
1-877-OFFICEMAX. For more information, visit www.officemax.com.

OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(thousands)

September 26, December 27,
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $546,946 $170,779
Receivables, net 534,020 566,846
Inventories 742,765 949,401
Deferred income taxes and receivables 125,096 105,140
Other current assets 54,090 62,850
------ ------
Total current assets 2,002,917 1,855,016

Property and equipment:
Property and equipment 1,306,502 1,289,279
Accumulated depreciation (857,899) (798,551)
-------- --------
Property and equipment, net 448,603 490,728

Intangible assets, net 84,233 81,793
Timber notes receivable 899,250 899,250
Deferred income taxes 354,528 436,182
Other non-current assets 344,539 410,614
------- -------

Total assets $4,134,070 $4,173,583
========== ==========

LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt $39,143 $64,452
Income taxes payable 16,090 18,288
Accounts payable 676,010 755,797
Accrued liabilities and other 366,316 358,934
------- -------
Total current liabilities 1,097,559 1,197,471

Long-term debt:
Long-term debt, less current portion 293,342 289,922
Timber notes securitized 1,470,000 1,470,000
--------- ---------
Total long-term debt 1,763,342 1,759,922

Other long-term obligations:
Compensation and benefits 494,893 502,447
Other long-term liabilities 415,474 401,869
------- -------
Total other long-term liabilities 910,367 904,316

Noncontrolling interest in joint venture 28,264 21,871

Shareholders' equity:
Preferred stock 37,685 42,565
Common stock 190,731 189,943
Additional paid-in capital 926,038 925,328
Accumulated deficit (599,625) (600,095)
Accumulated other comprehensive loss (220,291) (267,738)
-------- --------
Total shareholders' equity 334,538 290,003

Total liabilities and equity $4,134,070 $4,173,583
========== ==========

OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(thousands, except per-share amounts)

Quarter Ended
---------------
September 26, September 27,
2009 2008
---- ----

Sales $1,831,947 $2,096,337
Cost of goods sold and
occupancy costs 1,397,215 1,569,870
--------- ---------
Gross profit 434,732 526,467

Operating expenses:
Operating and selling expenses 339,043 394,590
General and administrative
expenses 69,019 77,664
Goodwill and other asset
impairments (a) - 735,750
Other operating expenses (b) 1,473 -
----- ---
Total operating expenses 409,535 1,208,004

Operating income (loss) 25,197 (681,537)
------ --------

Other income (expense):
Interest expense (a) (19,289) (29,822)
Interest income (a) 10,873 3,318
Other expense, net (3) (25)
-- ---
(8,419) (26,529)
------ -------

Income (loss) before income
taxes 16,778 (708,066)
Income tax benefit (expense) (9,942) 276,415
------ -------

Net income (loss) attributable
to OfficeMax and noncontrolling
interest 6,836 (431,651)
Joint venture results
attributable to noncontrolling
interest (558) (232)
---- ----

Net income (loss) attributable
to OfficeMax 6,278 (431,883)

Preferred dividends (622) (812)
---- ----

Net income (loss) available to
OfficeMax common shareholders $5,656 $(432,695)
====== =========

Basic income (loss) per common share $0.07 $(5.70)
===== ======

Diluted income (loss) per common share $0.07 $(5.70)
===== ======

Weighted Average Shares
Basic 76,285 75,931
Diluted 77,152 75,931

(a) In the third quarter of 2008, a $735.8 million non-cash impairment-
related charge was recorded in the Corporate and Other segment related to
the timber installment notes receivable due from Lehman ("installment
notes"). In addition, we stopped accruing interest income on the
installment notes as of the last interest payment date (April 29,
2008), while continuing to accrue interest expense on the Lehman
guaranteed securitization notes payable until the default date (October
29, 2008). This resulted in $18.2 million of additional net interest
expense. The cumulative effect of these items was a reduction of net
income (loss) available to OfficeMax common shareholders by $460.7
million or $6.06 per diluted share.

(b) The third quarter of 2009 includes a $1.5 million charge in our
Contract segment related to the reorganization of our customer service
centers. This charge reduced net income (loss) available to OfficeMax
common shareholders by $0.9 million, or $0.01 per diluted share.

OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(thousands, except per-share amounts)

Nine Months Ended
-------------------
September 26, September 27,
2009 2008
---- ----

Sales $5,401,549 $6,383,899
Cost of goods sold and occupancy
costs 4,106,346 4,786,026
--------- ---------
Gross profit 1,295,203 1,597,873

Operating expenses:
Operating and selling expenses 1,021,343 1,191,688
General and administrative
expenses 208,917 229,305
Goodwill and other asset
impairments (a)(b) - 1,671,090
Other operating expenses (c) 39,710 11,274
------ ------
Total operating expenses 1,269,970 3,103,357

Operating income (loss) 25,233 (1,505,484)
------ ----------

Other income (expense):
Interest expense (a) (57,956) (89,144)
Interest income (a)(d) 36,449 46,900
Other income, net (e) 2,837 20,679
----- ------
(18,670) (21,565)
------- -------

Income (loss) before income taxes 6,563 (1,527,049)
Income tax benefit (expense) (4,425) 265,481
------ -------

Net income (loss) attributable to
OfficeMax and noncontrolling
interest 2,138 (1,261,568)
Joint venture results attributable
to noncontrolling interest 1,111 (1,191)
----- ------

Net income (loss) attributable to
OfficeMax 3,249 (1,262,759)

Preferred dividends (2,159) (2,839)
------ ------

Net income (loss) available to
OfficeMax common shareholders $1,090 $(1,265,598)
====== ===========

Basic income (loss) per common share $0.01 $(16.69)
===== =======

Diluted income (loss) per common share $0.01 $(16.69)
===== =======

Weighted Average Shares
Basic 76,233 75,831
Diluted 76,846 75,831

(a) In the first nine months of 2008, a $735.8 million non-cash
impairment-related charge was recorded in the Corporate and Other
segment related to the timber installment notes receivable due from
Lehman ("installment notes"). In addition, we stopped accruing interest
income on the installment notes as of the last interest payment date
(April 29, 2008), while continuing to accrue interest expense on the
Lehman guaranteed securitization notes payable until the default date
(October 29, 2008). This resulted in $18.2 million of additional net
interest expense. The cumulative effect of these items was a reduction of
net income (loss) available to OfficeMax common shareholders by $460.7
million or $6.06 per diluted share.

(b) The first nine months of 2008 includes $935.3 million non-cash
charges related to impairment of goodwill, tradenames and fixed assets.
These charges are recorded by segment in the following manner: Contract
$464.0 million and Retail $471.3 million. The charges reduced net income
(loss) available to OfficeMax common shareholders by $909.3 million or
$11.99 per diluted share.

(c) The first nine months of 2009 includes $31.2 million of charges in
our Retail segment related to store closures as well as severance and
other charges of $8.4 million in our Contract segment, principally
related to reorganizations of our U.S. and Canadian sales forces and
customer service centers. In total, these charges reduced net income
(loss) available to OfficeMax common shareholders by $24.1 million, or
$0.32 per diluted share.

The first nine months of 2008 includes $14.4 million of severance and
other charges related to the reorganization of Retail store and field
management and the consolidation of the Contract segment's manufacturing
facilities in New Zealand. The first nine months of 2008 also includes a
$3.1 million gain related to the sold legacy Voyageur Panel business.
These items reduced net income (loss) available to OfficeMax common
shareholders by $7.0 million, or $0.09 per diluted share.

(d) The first nine months of 2009 includes $4.4 million of interest
income related to a tax escrow balance established in a prior period in
connection with our legacy Voyager Panel business sold in 2004. This item
increased net income (loss) available to OfficeMax common shareholders by
$2.7 million, or $0.04 per diluted share.

(e) Other income includes income related to the company's investment in
Boise Cascade, L.L.C. of $2.6 million and $20.5 million in 2009 and 2008,
respectively. The large distribution in 2008 was primarily related to
Boise's sale of a majority interest in their paper and packaging and
newsprint business. These items increased net income (loss) available to
OfficeMax common shareholders $1.6 million, or $0.02 per diluted share in
2009 and $12.5 million, or $0.16 per diluted share in 2008.

OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(thousands)

Nine Months Ended
-------------------
September 26, September 27,
2009 2008
---- ----
Cash provided by operations:
Net income (loss) attributable to OfficeMax and
noncontrolling interest $2,138 $(1,261,568)
Items in net income (loss) not using (providing)
cash:
Depreciation and amortization 88,693 105,235
Non-cash impairment charges - 1,671,090
Non-cash deferred taxes on impairment
charges - (319,363)
Other 10,002 (6,801)
Changes in operating assets and liabilities:
Receivables and inventory 255,219 144,903
Accounts payable and accrued liabilities (94,038) (19,431)
Income taxes and other 107,122 (67,337)
------- -------
Cash provided by operations 369,136 246,728

Cash provided by (used for) investment:
Expenditures for property and equipment (23,946) (112,065)
Other 40,816 9,440
------ -----
Cash provided by (used for) investment 16,870 (102,625)

Cash used for financing:
Cash dividends paid (3,052) (34,359)
Changes in debt, net (21,810) (26,392)
Other 1,453 130
----- ---
Cash used for financing (23,409) (60,621)

Effect of exchange rates on cash and cash
equivalents 13,570 (1,608)
Increase in cash and cash equivalents 376,167 81,874
Cash and cash equivalents at beginning
of period 170,779 152,637
------- -------

Cash and cash equivalents at end of period $546,946 $234,511
======== ========

OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
NON-GAAP RECONCILIATION
(unaudited)
(millions, except per-share amounts)

Quarter Ended
---------------
September 26, 2009 September 27, 2008
------------------ ------------------
As Adjust- As As Adjust- As
Reported ments Adjusted Reported ments Adjusted
-------- ------- -------- -------- ------- --------

Sales $1,831.9 $- $1,831.9 $2,096.3 $- $2,096.3
Cost of goods sold
and occupancy
costs 1,397.2 - 1,397.2 1,569.8 - 1,569.8
------- - ------- ------- - -------
Gross profit 434.7 - 434.7 526.5 - 526.5

Operating expenses:
Operating and
selling expenses 339.0 - 339.0 394.5 - 394.5
General and
administrative
expenses 69.0 - 69.0 77.7 77.7
Goodwill and other
asset impairments
(a) - - - 735.8 (735.8) -
Other operating
expenses (b) 1.5 (1.5) - - - -
--- ---- --- --- --- ---
Total operating
expenses 409.5 (1.5) 408.0 1,208.0 (735.8) 472.2

Operating income
(loss) 25.2 1.5 26.7 (681.5) 735.8 54.3
---- --- ---- ------ ----- ----

Interest, net (a) (8.4) - (8.4) (26.6) 18.2 (8.4)
---- --- ---- ----- ---- ----

Income (loss) before
income taxes 16.8 1.5 18.3 (708.1) 754.0 45.9
Income tax benefit
(expense) (9.9) (0.6) (10.5) 276.4 (293.3) (16.9)
---- ---- ----- ----- ------ -----

Net income (loss)
attributable to
OfficeMax and
noncontrolling
interest 6.9 0.9 7.8 (431.7) 460.7 29.0
Joint venture
results attributable
to noncontrolling
interest (0.6) - (0.6) (0.2) - (0.2)
---- --- ---- ---- --- ----
Net income (loss)
attributable to
OfficeMax 6.3 0.9 7.2 (431.9) 460.7 28.8

Preferred dividends (0.6) - (0.6) (0.8) - (0.8)
---- --- ---- ---- --- ----

Net income (loss)
available to
OfficeMax common
shareholders $5.7 $0.9 $6.6 $(432.7) $460.7 $28.0
==== ==== ==== ======= ====== =====

Basic income (loss)
per common share $0.07 $0.01 $0.08 $(5.70) $6.07 $0.37
===== ===== ===== ====== ===== =====

Diluted income
(loss) per common
share $0.07 $0.01 $0.08 $(5.70) $6.06 $0.36
===== ===== ===== ====== ===== =====

Weighted Average
Shares
Basic 76,285 76,285 75,931 75,931
Diluted 77,152 77,152 75,931 77,114

(a) In the third quarter of 2008, a $735.8 million non-cash impairment-
related charge was recorded in the Corporate and Other segment related to
the timber installment notes receivable due from Lehman ("installment
notes"). In addition, we stopped accruing interest income on the
installment notes as of the last interest payment date (April 29, 2008),
while continuing to accrue interest expense on the Lehman guaranteed
securitization notes payable until the default date (October 29, 2008).
This resulted in $18.2 million of additional net interest expense. The
cumulative effect of these items was a reduction of net income (loss)
available to OfficeMax common shareholders by $460.7 million or $6.06 per
diluted share.

(b) The third quarter of 2009 includes a $1.5 million charge in our
Contract segment related to the reorganization of our customer service
centers. This charge reduced net income (loss) available to OfficeMax
common shareholders by $0.9 million, or $0.01 per diluted share.

OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
NON-GAAP RECONCILIATION
(unaudited)
(millions, except per-share amounts)

Nine Months Ended
-------------------
September 26, 2009 September 27, 2008
------------------ ------------------
As Adjust- As As Adjust- As
Reported ments Adjusted Reported ments Adjusted
-------- ------- -------- -------- ------- --------

Sales $5,401.5 $- $5,401.5 $6,383.9 $- $6,383.9
Cost of
goods sold
and occupancy
costs 4,106.3 - 4,106.3 $4,786.0 - 4,786.0
------- --- ------- -------- --- -------
Gross
profit 1,295.2 - 1,295.2 1,597.9 - 1,597.9

Operating expenses:
Operating and
selling
expenses 1,021.4 - 1,021.4 1,191.7 - 1,191.7
General and
administrative
expenses 208.9 - 208.9 229.3 229.3
Goodwill and other
asset impairments
(a)(b) - - - 1,671.1 (1,671.1) -
Other operating
expenses (c) 39.7 (39.7) - 11.3 (11.3) -
---- ----- --- ---- ----- ---
Total operating
expenses 1,270.0 (39.7) 1,230.3 3,103.4 (1,682.4) 1,421.0

Operating income
(loss) 25.2 39.7 64.9 (1,505.5) 1,682.4 176.9
---- ---- ---- -------- ------- -----

Other income (expense):
Interest, net
(b)(d) (21.4) (4.4) (25.8) (42.2) 18.2 (24.0)
Other income,
net (e) 2.8 (2.6) 0.2 20.7 (20.5) 0.2
--- ---- --- ---- ----- ---
(18.6) (7.0) (25.6) (21.5) (2.3) (23.8)
----- ---- ----- ----- ---- -----

Income (loss) before
income taxes 6.6 32.7 39.3 (1,527.0) 1,680.1 153.1
Income tax benefit
(expense) (4.4) (12.4) (16.8) 265.4 (315.6) (50.2)
---- ----- ----- ----- ------ -----

Net income (loss)
attributable to
OfficeMax and
noncontrolling
interest 2.2 20.3 22.5 (1,261.6) 1,364.5 102.9
Joint venture
results attributable
to noncontrolling
interest 1.1 (0.5) 0.6 (1.2) - (1.2)
--- ---- --- ---- --- ----
Net income (loss)
attributable to
OfficeMax 3.3 19.8 23.1 (1,262.8) 1,364.5 101.7

Preferred
dividends (2.2) - (2.2) (2.8) - (2.8)
---- --- ---- ---- --- ----

Net income (loss)
available to
OfficeMax common
shareholders $1.1 $19.8 $20.9 $(1,265.6) $1,364.5 $98.9
==== ===== ===== ========= ======== =====

Basic income (loss)
per common share $0.01 $0.26 $0.27 $(16.69) $17.99 $1.30
===== ===== ===== ======= ====== =====

Diluted income
(loss) per common
share $0.01 $0.26 $0.27 $(16.69) $17.98 $1.29
===== ===== ===== ======= ====== =====

Weighted Average
Shares
Basic 76,233 76,233 75,831 75,831
Diluted 76,846 76,846 75,831 76,915

(a) The first nine months of 2008 includes $935.3 million non-cash
charges related to impairment of goodwill, tradenames and fixed assets.
These charges are recorded by segment in the following manner: Contract
$464.0 million and Retail $471.3 million. The charges reduced net income
(loss) available to OfficeMax common shareholders by $909.3 million or
$11.99 per diluted share.

(b) In the first nine months of 2008, a $735.8 million non-cash
impairment-related charge was recorded in the Corporate and Other segment
related to the timber installment notes receivable due from Lehman
("installment notes"). In addition, we stopped accruing interest income
on the installment notes as of the last interest payment date (April 29,
2008), while continuing to accrue interest expense on the Lehman
guaranteed securitization notes payable until the default date (October
29, 2008). This resulted in $18.2 million of additional net interest
expense. The cumulative effect of these items was a reduction of net
income (loss) available to OfficeMax common shareholders by $460.7
million or $6.06 per diluted share.

(c) The first nine months of 2009 includes $31.2 million of charges in
our Retail segment related to store closures as well as severance and
other charges of $8.4 million in our Contract segment, principally
related to reorganizations of our U.S. and Canadian sales forces and
customer service centers. In total, these charges reduced net income
(loss) available to OfficeMax common shareholders by $24.1 million, or
$0.32 per diluted share.

The first nine months of 2008 includes $14.4 million of severance and
other charges related to the reorganization of Retail store and field
management and the consolidation of the Contract segment's manufacturing
facilities in New Zealand. The first nine months of 2008 also includes a
$3.1 million gain related to the sold legacy Voyageur Panel business.
These items reduced net income (loss) available to OfficeMax common
shareholders by $7.0 million, or $0.09 per diluted share.

(d) The first nine months of 2009 includes $4.4 million of interest
income related to a tax escrow balance established in a prior period in
connection with our legacy Voyager Panel business sold in 2004. This item
increased net income (loss) available to OfficeMax common shareholders by
$2.7 million, or $0.04 per diluted share.

(e) Other income includes income related to the company's investment in
Boise Cascade, L.L.C. of $2.6 million and $20.5 million in 2009 and 2008,
respectively. The large distribution in 2008 was primarily related to
Boise's sale of a majority interest in their paper and packaging and
newsprint business. These items increased net income (loss) available to
OfficeMax common shareholders $1.6 million, or $0.02 per diluted share in
2009 and $12.5 million, or $0.16 per diluted share in 2008.

OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONTRACT SEGMENT STATEMENTS OF OPERATIONS
(unaudited)
(millions, except per-share amounts)

Quarter Ended
---------------
September 26, September 27,
2009 2008
---- ----

Sales $899.6 $1,049.1
Cost of goods sold and
occupancy costs 719.9 820.6
----- -----
Gross profit 179.7 20.0% 228.5 21.8%

Operating expenses:
Operating expenses (a) 169.6 18.9% 193.0 18.4%
Other operating expenses 1.5 0.1% - 0.0%
--- --- --- ---
Total operating expenses 171.1 19.0% 193.0 18.4%

Operating income $8.6 1.0% $35.5 3.4%
---- -----

Non-GAAP Reconciliation
-----------------------
Operating income $8.6 1.0% $35.5 3.4%
Other operating expenses 1.5 0.1% - 0.0%
--- --- --- ---
Adjusted operating
income $10.1 1.1% $35.5 3.4%
----- -----

Nine Months Ended
-------------------
September 26, September 27,
2009 2008
---- ----

Sales $2,708.8 100.0% $3,356.1 100.0%
Cost of goods sold and
occupancy costs 2,153.0 2,614.1
------- -------
Gross profit 555.8 20.5% 742.0 22.1%

Operating expenses:
Operating expenses (a) 511.8 18.9% 597.3 17.8%
Goodwill and other
asset impairments - 0.0% 464.0 13.8%
Other operating expenses 8.4 0.3% 2.4 0.1%
--- --- --- ---
Total operating expenses 520.2 19.2% 1,063.7 31.7%

Operating income
(loss) $35.6 1.3% $(321.7) -9.6%
----- -------

Non-GAAP Reconciliation
-----------------------
Operating income
(loss) $35.6 1.3% $(321.7) -9.6%
Goodwill and other
asset impairments - 0.0% 464.0 13.8%
Other operating expenses 8.4 0.3% 2.4 0.1%
--- --- --- ---
Adjusted operating
income $44.0 1.6% $144.7 4.3%
----- ------

(a) Operating expenses includes operating and selling expenses as well as
general and administrative expenses.

OFFICEMAX INCORPORATED AND SUBSIDIARIES
RETAIL SEGMENT STATEMENTS OF OPERATIONS
(unaudited)
(millions, except per-share amounts)

Quarter Ended
---------------
September 26, September 27,
2009 2008
---- ----

Sales $932.3 $1,047.2
Cost of goods sold and occupancy
costs 677.2 749.2
----- -----
Gross profit 255.1 27.4% 298.0 28.5%

Operating expenses:
Operating expenses (a) 226.7 24.4% 268.9 25.7%
Other operating expenses - 0.0% - 0.0%
- --- - ---
Total operating expenses 226.7 24.4% 268.9 25.7%

Operating income $28.4 3.0% $29.1 2.8%
----- -----

Non-GAAP Reconciliation
-----------------------
Operating income $28.4 3.0% $29.1 2.8%
Other operating expenses - 0.0% - 0.0%
--- --- --- ---
Adjusted operating income $28.4 3.0% $29.1 2.8%
----- -----

Nine Months Ended
-------------------
September 26, September 27,
2009 2008
---- ----

Sales $2,692.7 100.0% $3,027.8 100.0%
Cost of goods sold and
occupancy costs 1,953.3 2,172.0
------- -------
Gross profit 739.4 27.5% 855.8 28.3%

Operating expenses:
Operating expenses (a) 687.7 25.6% 794.6 26.3%
Goodwill and other asset
impairments - 0.0% 471.3 15.6%
Other operating expenses 31.2 1.1% 12.0 0.4%
---- --- ---- ---
Total operating expenses 718.9 26.7% 1,277.9 42.3%

Operating income (loss) $20.5 0.8% $(422.1) -14.0%
----- -------

Non-GAAP Reconciliation
-----------------------
Operating income (loss) $20.5 0.8% $(422.1) -14.0%
Goodwill and other asset
impairments - 0.0% 471.3 15.6%
Other operating expenses 31.2 1.1% 12.0 0.4%
---- --- ---- ---
Adjusted operating
income $51.7 1.9% $61.2 2.0%
----- -----

(a) Operating expenses includes operating and selling expenses as well as
general and administrative expenses.

Reconciliation of non-GAAP Measures to GAAP Measures
We evaluate our results of operations before certain costs including facility
closure, severance related items, asset impairments, income related to our
investment in Boise Cascade, L.L.C. and interest income related to a tax
escrow balance, as they are not indicative of our core operating activities.
We believe our presentation of financial measures before, or excluding, these
items, which are non-GAAP measures, enhances our investors' overall
understanding of our recurring operational performance and provides useful
information to both investors and management to evaluate the ongoing
operations and prospects of OfficeMax by providing better comparisons.
Whenever we use non-GAAP financial measures, we designate these measures as
"adjusted" and provide a reconciliation of non-GAAP financial measures to the
most closely applicable GAAP financial measure. Investors are encouraged to
review the related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP financial
measure. In the preceding tables, we reconcile our non-GAAP financial
measures to our reported GAAP financial results for the third quarter and
first nine months of both 2009 and 2008.

Although we believe the non-GAAP financial measures enhance an investor's
understanding of our performance, our management does not itself, nor does it
suggest that investors should, consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information prepared in
accordance with GAAP. The non-GAAP financial measures we use may not be
consistent with the presentation of similar companies in our industry.
However, we present such non-GAAP financial measures in reporting our
financial results to provide investors with an additional tool to evaluate our
operating results in a manner that focuses on what we believe to be our
ongoing business operations.

SOURCE OfficeMax Incorporated

Media, Bill Bonner, +1-630-864-6066, or Investors, Mike Steele,
+1-630-864-6826, or Tony Giuliano, +1-630-864-6820, all of OfficeMax
Incorporated