Plainwell Completes Acquisition of Pope & Talbot Tissue Operations and Plans Converting Expansion

Business Wire, March 6, 1998

PLAINWELL, Mich.--(BUSINESS WIRE)--March 6, 1998--

Second Major Acquisition in Nine Months Gives Plainwell

Strength and Diversity in National Paper Markets

William L. New, chairman/CEO of Plainwell Inc. announced today that the company has completed acquisition of all the tissue paper manufacturing and tissue business from Pope & Talbot Inc. of Portland, Ore. (NYSE-POP) in a deal valued at $147 Million.

Acquired were three facilities - Eau Claire, Wis., and Ransom and Pittston, Pa., with combined production of 110,000 tons annually. The sites manufacture paper towel, bath tissue, facial tissue and napkin products sold under private label for retail customers. (Private label sales of bath tissue alone are $387 Million nationally, representing 10% of annual bath tissue sales of $3.487 Billion. Wall Street Journal 1/12/98). "This gives the company a solid position with some of the largest, fastest growing retailers of private label tissue. It affords retailers choice where recent paper industry mergers have limited that," said New.

"We are committed to the needs of our customers and we are confident of the opportunities for growth," said Randy Rhodes, Plainwell Inc. vice president.

This is the second major acquisition in nine months for this group of industry investors. In June 1997, these investors led by New, acquired Plainwell Paper Company, nationally recognized in the manufacture of premium printing papers and release liner grades from Simpson Paper. Plainwell Inc. now has 1,100 employees in three states and over 1.6 million square feet of manufacturing plant. "This move positions Plainwell Inc. strategically in both specialty paper and tissue paper markets," said New.

Plainwell Inc. is privately held and is headquartered in Plainwell, Mich.

CONTACT: Phil Pepe, Jr. & Associates, Yonkers

Phil Pepe, 914/968-6303

or

Plainwell Inc., Plainwell, Mich.

Randy Rhodes, 616/685-2712

or

Pope & Talbot, Portland

Maria Pope, 503/228-9161