American Pad & Paper Announces Definitive Agreement to Sell Its Creative Card Division to Taylor Corporation

Business Wire, April 19, 2000

Business Editors

DALLAS--(BUSINESS WIRE)--April 19, 2000

American Pad & Paper Company (OTCBB:AMPP) (AP&P) announced today that it has signed a definitive agreement with Taylor Corporation for the purchase of AP&P's Creative Card Division located in Chicago.

The sale is subject to final court approval and a motion has been filed with the Delaware Bankruptcy Court to review the proposed sale. The sale approval hearing is scheduled for April 28, 2000, with closing anticipated to occur within 10 days following court approval. Terms of the pending transaction were not disclosed.

"The sale of Creative Card would be our first significant asset sale this year and the proceeds will be used to reduce our debt," said James W. Swent III, Chief Executive Officer. "The previously announced sale process for the Williamhouse division continues to move forward, and is anticipated to be completed around mid-year 2000. AP&P is actively marketing its other major business units including AMPAD and Forms to maximize the value of the Company for all stakeholders."

"Creative Card and its Century Greetings brand are well-known in their respective distribution channels and their products are highly regarded by consumers," said John Schmitt, President of the Taylor Corporation Imprinting Group. "We look forward to adding Creative Card as a Taylor Corporation Company and believe this acquisition will provide opportunities for additional growth both for Creative Card and our related companies."

"Creative Card will continue to be based in Chicago and will continue to service its existing customer base," added Schmitt. "Customers can be confident that their needs will be met for the 2000 season and in the future."

Creative Card is a nationally recognized market leader in providing premium quality holiday greeting cards, all-occasion cards, social and business announcements, and pre-printed papers for desktop publishing.

Taylor Corporation is a privately held company based in Mankato, Minn., and, together with its affiliated companies, facilitates the operation of autonomous marketing and printing companies throughout North America, Europe and Australia.

American Pad & Paper Co., which invented the legal pad in 1888, is a leading manufacturer and marketer of paper-based office products in North America. Product offerings include envelopes, writing pads, file folders, machine papers, greeting cards and other office products. The key operating divisions of the Company are Williamhouse, AMPAD, and Creative Card. Company revenues in 1999 were $573 million, additional information is available on the Company's Website at http://www.americanpad.com.

This release contains forward-looking statements relating to future results for American Pad & Paper. Actual results may differ significantly from these statements due to risk factors including, but not limited to the following: changing business and economic conditions; changes in customer order patterns, including loss of key customers, order cancellations or reduced sales; price and product competition; manufacturing risks; raw material availability and price changes; excess or obsolete inventory; the loss of key personnel and new product development, including acceptance of new products. Additional information, which could affect American Pad & Paper's financial results are included in AP&P's filings with the Securities and Exchange Commission.