Consumables

Neenah Paper Completes Sale of Pictou Pulp Mill and Transformation to Premium and Specialty Paper Company

Wednesday 25. June 2008 - Neenah Paper, Inc. (NYSE:NP) announced today that it had completed the sale of its Pictou pulp mill to Northern Pulp Nova Scotia Corporation ("Northern Pulp"), a new operating company of Atlas Holdings LLC ("Atlas") and Blue Wolf Capital Management LLC ("Blue Wolf"). The intended transaction was originally communicated in a press release on May 15, 2008; and terms of the sale are consistent with this earlier release.

As part of the agreement, Neenah Paper paid an initial $1.8 million to Northern Pulp at closing. A second and final payment of $10 million will be made in the third quarter. In return, Northern Pulp has assumed all assets and liabilities associated with the Pictou operations, as well as existing customer contracts, supply agreements, labor agreements and pension obligations. As previously indicated, the transaction is expected to be significantly cash positive to Neenah Paper as a result of tax benefits that would be realized over the next one to three years.

Following this sale, Neenah Paper will become a pure premium paper and specialty products company and no longer own any pulp mills. The company will continue to own 500,000 acres of timberlands in Nova Scotia and has announced its intent to sell these timberlands within the next 12 months.