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Glatfelter to Buy Carbonless Business from NewPage

Feb. 22, 2006 (Press Release) - Glatfelter, of York, Pennsylvania, and NewPage Corporation of Dayton, Ohio, jointly announced today the signing of a definitive agreement in which Glatfelter will acquire NewPage’s carbonless and specialty paper business operations, based in Chillicothe and Fremont, Ohio. The operations had estimated 2005 sales of about $440 million.

Under the terms of the agreement, Glatfelter will purchase the assets for $80 million in cash. “This acquisition supports our vision of becoming the global supplier of choice in specialty papers and engineered products,” said George H. Glatfelter II, Glatfelter’s Chairman and Chief Executive Officer. “It is an exceptional opportunity to purchase assets with world-class production capabilities at an attractive price.”

Glatfelter said it will soon provide additional details on the transaction in a separate news release.

In June 2005, NewPage announced its plan to review strategic alternatives for the carbonless operations including the sale of the business to an owner with better alignment to its core product line, the sale of the business to the Chillicothe management team and/or employees, or restructuring the business.

“After reviewing several alternatives, we determined that selling the business to Glatfelter was the best possible option for the business, the employees who support the operation, our customers and the surrounding community,” said Amber S. Garwood, spokesperson for NewPage Corporation. “The decision also reflects our commitment to focus our energies to ensure NewPage continues to be the leader in the coated paper business.”

The companies said they expected the transaction to close on or about March 31, 2006.

About Glatfelter. Headquartered in York, Pennsylvania, Glatfelter is a global manufacturer of specialty papers and engineered products. U.S. operations include facilities in Spring Grove, PA and Neenah, WI. International operations include facilities in Germany, France and the Philippines and an office in China.

About NewPage. NewPage Corporation, headquartered in Dayton, Ohio, is a leading U.S. producer of coated papers in North America. With more than 6,100 employees, the company operates five integrated pulp and paper manufacturing mills located in Chillicothe, Ohio; Escanaba, Michigan; Luke, Maryland; Rumford, Maine; and Wickliffe, Kentucky. These mills have a combined annual capacity of approximately 2.5 million tons of coated and carbonless paper.

SOURCE: Glatfelter




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